In: Economics
New Deal
US president Franklin D Roosevelt between 1933 and 1939 introduced
the concept new deal program which brought many economical and
political changes in the nation. Reforms in agriculture, industry,
finance, labor, waterpower, housing and even the expansion of the
activities of the federal government were the main features of the
program. The program helped the nation to hold a sudden recovery
after the great depression.
Economy was helped by the interference of the government changing
the system of laissez-faire, which is the free market system. The
administration with a prime objective, alleviate the problems
suffered by a huge number of workers. Agencies like Works Progress
Administration and Civilian Conservation Corps were made up to
provide governmental aid and other benefits like temporary jobs
etc. Administration also focused in reviving the agricultural and
industrial sector. National Recovery Administration was helped to
provide industrial encouraging changes and governmental policies
both the employer and employees. Several measures were adopted to
fix the financial sector more stable by providing insurance for the
member banks of the federal system and stock market stabilizing
moves. Tennessee Valley Authority has to assure the cheap and
effective supply of electricity in a seven-state area, prevent
floods, improve navigation etc. Labor unions were formed for the
benefit of labors, social security measures for old age and widows
were all the features of the new deal. Thus changes in several
sectors made the economy more efficient, increasing the scope of
the federal government to interfere in the economical and political
activities of the states.