Did the New Deal save capitalism?

Answer 1

The New Deal stifled Capitalism and prevented free market recovery from happening naturally. This stifling of the free market did not begin with Roosevelt however, Herbert Hoover began the crusade of government intervention into the economy. The policies of Hoover and Roosevelt and their regulations had little to no positive effect on the economy. In fact economic graphs from the era show that the economy was absolutely stifled during the time of government intervention.

Contrary to wide held opinions Socialism provided the malaise that allowed Hitler to instill Fascism in the 1930's and 40's, where humans were treated as a commodity to be used to gain advantage for the state. Nazi Germany was never a Capitalist system.

It is apparent that Statist policies and over regulation tend to hamper free enterprise.

Democrat President Harry S. Trueman stated the differences between Democracy and government based welfare states in his inaugural address in 1949: Harry S. Truman, Inaugural Speech (excerpt), 1949

" The American people desire, and are determined to work for, a world in which all nations and all peoples are free to govern themselves as they see fit, and to achieve a decent and satisfying life. Above all else, our people desire, and are determined to work for, peace on earth-a just and lasting peace-based on genuine agreement freely arrived at by equals. 9

In the pursuit of these aims, the United States and other like-minded nations find themselves directly opposed by a regime with contrary aims and a totally different concept of life. 10

That regime adheres to a false philosophy which purports to offer freedom, security, and greater opportunity to mankind. Misled by this philosophy, many peoples have sacrificed their liberties only to learn to their sorrow that deceit and mockery, poverty and tyranny, are their reward. 11

That false philosophy is communism. 12

Communism is based on the belief that man is so weak and inadequate that he is unable to govern himself, and therefore requires the rule of strong masters. 13

Democracy is based on the conviction that man has the moral and intellectual capacity, as well as the inalienable right, to govern himself with reason and justice. 14

Communism subjects the individual to arrest without lawful cause, punishment without trial, and forced labor as the chattel of the state. It decrees what information he shall receive, what art he shall produce, what leaders he shall follow, and what thoughts he shall think. 15

Democracy maintains that government is established for the benefit of the individual, and is charged with the responsibility of protecting the rights of the individual and his freedom in the exercise of his abilities. 16

Communism maintains that social wrongs can be corrected only by violence. 17

Democracy has proved that social justice can be achieved through peaceful change. 18

Communism holds that the world is so deeply divided into opposing classes that war is inevitable. 19

Democracy holds that free nations can settle differences justly and maintain lasting peace. 20

These differences between communism and democracy do not concern the United States alone. People everywhere are coming to realize that what is involved is material well-being, human dignity, and the right to believe in and worship God. 21

I state these differences, not to draw issues of belief as such, but because the actions resulting from the Communist philosophy are a threat to the efforts of free nations to bring about world recovery and lasting peace."

Answer 2

The impact of the New Deal is still debated today. FDR believed that the legislation enacted during his administrations saved the capitalist system in the United States from the kind of political extremism that the depression caused in other areas of the world. He felt that businesses betrayed him by their attempts to defeat some of his measures that were harmful to them. Many Americans view the New Deal as socialist, and they are right: socialism, by definition, is state ownership and administration of the means of production and distribution of goods. This was precisely the outcome of the New Deal. In fact, the New Deal was so dangerous to capitalism in America that many of the programs instituted by it were ruled unconstitutional by the Supreme Court: such economic meddling by the Federal Government is not specifically allowed by the United States Constitution, and, according to the Tenth Amendment to the Constitution, such powers are "reserved to the states respectively, or to the people."

Some think that the New Deal helped solve the Great Depression. However, in reality, it only prolonged and exacerbated it. That is why, in the rest of the world, the Great Depression is referred to simply as "the Depression." Only in America is it the "Great Depression," a status earned it by the New Deal. As a permanent formula for economic recovery, the New Deal was not successful. In 1937, as unemployment dropped, FDR dismantled many of the expensive government programs. Not all programs were removed, however; social security, one of FDR's many initiatives, still remains today, and causes many problems. The New Deal, and socialism in general, can be seen as good ideas in principle, but in retrospect, advocating them was a huge failure on FDR's part. The result of the New Deal was a mini-depression and an increase in unemployment. It was not until preparations for war led to massive purchases of American goods from abroad that the Great Depression came to an end. The New Deal was such a failure and so dangerous to America's economy that Congress decided, after Roosevelt died, to pass the Twenty-Second Amendment to the Constitution, limiting a president's terms to two in order to prevent another president like FDR from taking such control over America.

Answer 3

No, it was the beginning of "creeping socialism", but of course, a socialist would be expected to disagree. Topics like that are generally open to interpretation.