How Did The New Deal Strengthen Or Weaken The Usa Capitalism

The New Deal Franklin D. Roosevelt took office at a time when the American Nation was facing economic and social disasters. The 1930s were characterized by hunger, homelessness and poverty. Many of the American people were clamoring for change, and F.D Roosevelt set out to enact reforms and offer relief to the people. The largely Democratic Congress rubber stamped most of the ideas that F.D Roosevelt and his close companions had strategized during the campaigns. The close-knit group around the President were referred to as the Brain Trust, and their main theme was to help the forgotten individual at the bottom. This marked the birth of the new deal. With it came new policies that touched on all sectors of the economic and social life. The New Deal promised to rid the country of poverty and pledged to provide well-paying jobs, food and social security.
Nonetheless, even before the concept could be put into practice it faced opposition from within Roosevelt’s own
These include programs like the Medicaid, unemployment insurance and the subsidies program. Of all the social assistance initiatives, the subsidies program consumes a huge chunk of government spending. The top-down planning nature of government does not take into consideration the value such policies add to the economy. As such, the government does not consider market efficiency when it enacts all these policies. Moreover, with all these government-backed social assistance programs, it would need additional staff to run the new institutions. Organizations like the Federal Housing Commission, the National Labor Relations Board, the Social Security Administration, among others, each in their own way have interfered with the free market economy and reduced efficiency and productivity. This leads to a bigger and wasteful government. The social assistance programs are all designed to serve special interest