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How effective was the New Deal at addressing the problems of the Great Depression?

The New Deal itself created millions of jobs and sponsored public works projects that reached most every county in the nation. Federal protection of bank deposits ended the dangerous trend of bank runs. Abuse of the stock market was more clearly defined and monitored to prevent collapses in the future. The Social Security system was modified and expanded to remain one of the most popular government programs for the remainder of the century. For the first time in peacetime history the federal government assumed responsibility for managing the economy. The legacy of social welfare programs for the destitute and underprivileged would ring through the remainder of the 1900s.

Laborers benefited from protections as witnessed by the emergence of a new powerful union, the CONGRESS OF INDUSTRIAL ORGANIZATIONS. African Americans and women received limited advances by the legislative programs, but FDR was not fully committed to either civil or women's rights. All over Europe, fascist governments were on the rise, but Roosevelt steered America along a safe path when economic spirits were at an all-time low.

However comprehensive the New Deal seemed, it failed to achieve its main goal: ending the Depression. In 1939, the unemployment rate was still 19 percent, and not until 1943 did it reach its pre-Depression levels. The massive spending brought by the American entry to the Second World War ultimately cured the nation's economic woes.

Many complained that Roosevelt more than doubled the national debt in two short terms, a good deal of which had been lost through waste. Liberals pointed out that the gap between rich and poor was barely dented by the end of the decade. Regardless of its shortcomings, Franklin Roosevelt and the New Deal helped America muddle through the dark times strong enough to tackle the even greater task that lay ahead.

The Legacy of the New Deal:

Public works

bridges
dams
tunnels
public buildings
hospitals

Federal Agencies

• Tennessee Valley Authority-model of government planning

FDIC-still insures bank deposits
The Securities and Exchange Commission-continues to monitor the stock market
Social Security System-is a mainstay in American society

A Legacy of Hope

Many people turned to their government for help during the hard times of the Depression
Government programs meant the difference between surviving and starvation for millions of Americans.

Changed Presidency

FDR changed the expectations that people had for the government in general and the president in particular.
From the New Deal on people tended to expect the president to initiate legislation and make programs and to use the strength and influence of his office to solve the problems that faced the country. People expected more government intervention in the lives of citizens as well as government protection of organized labor. These expectations define the modern democratic party.

The Economy

The New Deal DID NOT end the Great Depression
Economic recovery was set into motion in two visible ways: In September of 1939 the market began to improve. This upturn was the result of the outbreak of war in Europe (Hitler invaded Poland on September 1 1939) The production of war materials at the outset of American involvement in WWII.