Question

In: Economics

How did the New Deal alter the role of the national government? In your answer, discuss...

How did the New Deal alter the role of the national government? In your answer, discuss three specific New Deal programs or legislation. Describe their impact on American society.

Solutions

Expert Solution

New Deal Altered the role of the national government fundamentally and permanently. During 1929, US economy was hit by deep economic depression. Demand in economy subdued significantly and over 25 % of labor force was rendered unemployed. Only way to deal with such economic crisis was role of government. Government moved from merely policy state to developmental state. Government announced myriads of economic policies under the new deal and acted positively to end economic recession.

Following three acts:

  • Tennessee Valley Act was singed into law and through this project, lot of public work was carried out. it provided employment to public.
  • Legislation was passed to pay farmers to leave the land fallow so that agricultural prices can shoot up due to fall in supply of agro products.
  • National industrial recovery act was signed into law and workers were allowed to bargain for higher wages.

thus, New deal affected American society positively and helped to recover from deep economic recession. Many workers were provided with employments opportunities. Now role of state increased significantly.


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