argues that the high taxes, special-interest spending to certain banks, railroads, farmers and veterans of the New Deal created an anti-free market as well as a poor business environment.
The New Deal was mainly focused one them and the government tried many ways and started many organizations to help them from being taken advantage of like they had been in previous years.
The decline in life expectancy of the New Deal years was not very consistent; however, it was still more of an interruption than the century had seen before.
In the field of relief, the New Deal proved to be highly successful. Millions of Americans, unable to find work in an economy that was still badly broken four years into the Great Depression, might have literally starved to death if not for the government checks they earned by working for new agencies like the Civilian Conservation Corps and the Works Progress Administration.
In terms of reform, the New Deal legacy may have been unmatched in American history. For better or worse, Roosevelt's program drastically altered the relationship between the capitalist market, the people, and their government, creating for the first time in this country's history, an activist state committed to providing individual citizens with a measure of security against the unpredictable turns of the market.
Thus, at the very least, the New Deal did not prevent a "spectacular" rate of recovery. More, we have reason to believe some of Roosevelt's policies enabled it.
The most important thing to know about Roosevelt's economics is that, despite claims to the contrary, the economy recovered during the New Deal. During Roosevelt's first two terms, the U.S. economy grew at average annual growth rates of 9 percent to 10 percent, with the exception of the recession year of 1937-1938. As economist Christina Romer (now director-designate of the Council of Economic Advisers) writes, these rates were "spectacular, even for an economy pulling out of a severe recession."
For a start, New Deal intervention saved the banks. During Hoover's presidency, around 20 percent of American banks failed, and, without deposit insurance, one collapse prompted another as savers pulled their money out of the shaky system. When Roosevelt came into office, he ordered the banks closed and audited. A week later, authorities began reopening banks, and deposits returned to vaults.
These agencies worked to accomplish the three main goals of the New Deal: to relieve those suffering from the effects of the Great Depression, recover the depressed the economy, and reform the society so such a crisis would be avoided in the future.
Roosevelt along with his advisor group called the “Brain Trust” proposed the revolutionary policy known as the New Deal which drastically changed the basics of American society by distributing wealth as well as giving rights to the disadvantaged....
When the stock Market crashed on “Black Tuesday” in 1929 along with various alternate causes such as the installment buying of the 1920s, the United States became encapsulated within a massive economic depression known as “The Great Depression.” After the Election of 1932, the new president, Franklin D.
Congress also established the Federal Deposit Insurance Corporation, which, as economists Milton Friedman and Anna Jacobson Schwartz wrote, was "the structural change most conducive to monetary stability since ... the Civil War." After the creation of the FDIC, bank failures almost entirely disappeared. New Dealers also recapitalized banks by buying about a billion dollars of preferred stock.
John Maynard Keynes wrote to Roosevelt in 1938 that these actions were "a prior condition of recovery, since it is no use creating a demand for credit, if there is no supply." Thus, the New Deal made recovery possible.
But we can go even further: New Deal policies not only made recovery possible but got it going. Roosevelt reduced the dollar's value to $35 per ounce of gold (approximately 60 percent of its former value) and, as Romer notes, overseas investment flooded into the country, attracted by these cheaper dollars and stable banks and pushed, as time went on, out of Europe by Hitler's advance. Along with the flood of investment came an increase of durable-goods expenditures and construction -- and private sector jobs.