How effective were Franklin Delano Roosevelt's New Deal Programs in resolving the real causes of the Great Depression?

Answer 1

It is hotly contested as to whether FDR's New Deal Programs really resolved the root causes of the Great Depression partly because the causes of the Great Depression are still poorly understood.

The anti-government/libertarian stance generally states that the Great Depression was in itself caused by tight credit, and they generally argue that although FDR's programs may have helped alleviate some of the symptoms of the GD (high unemployment), they never truly healed the root cause (a drop in GDP caused by tight credit).

They argue that the massive banking failure during the beginning of the GD that so compounded its effects was unnecessary. The GD was triggered by a Stock Market crash, but it became far worse when banks started failing. With many banks out of business businesses could not obtain credit, and production fell. Farmers could not buy seeds for planting time because no credit was available. They point to Canada, for example, which had virtually no banking failures at all and argue that the laws to blame were anti-trust laws which prevented banks from giving each other loans. They argue that doing away with these laws would have allowed for looser credit for banks as well as everyone else.

Libertarians argue that FDR never really solved the root problem of tight credit and that many of his policies were in fact harmful. They argue that creating a minimum wage, for example, when business could barely survive helped the people with jobs, but made the problem of finding work for the millions of unemployed far harder.

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The pro-government/progressive stance general states that: The Great Depression was caused by great social inequality. A wealth gap opened up during the roaring twenties that led to abuse and corruption. But true industrial wealth and productivity comes only when every one has an equal share in the pie; when everyone is well educated and has a chance to become productive. But like the Roman Empire, the social inequality in America could not last forever, and soon the whole system collapsed under its own greed and filth.

From this desperate situation, only a brave hero could come to the rescue: FDR, savior of the common man and promoter of equality for all. Although he had a few setbacks, we was a great visionary and reformer, creating stabilizing programs such as social security and the FDIC which would probably prevent another banking collapse. His championing of education led to the creation of a golden age for the American middle class; Americans were the first to own cars, refrigerators, etc, and this is thanks to FDR.

Well, perhaps both sides have a point. Perhaps the Great Depression like many disasters was due to many failings of the government: things the government should have done, and things the government should not have done. The tight credit policies and laws preventing banks from borrowing from each other certainly contributed to the Great Depression. But perhaps it is also true that the government should have tried to put an end to the speculative bubbles and greed that caused the Stock Market to crash initially. One thing is for certain, FDR changed things dramatically and extremely successfully. So much so that the only people who truly oppose his core policies are on the very fringe of the political spectrum. They call themselves Ron Paul supporters.

Answer 2

although Hoover tried to solve the crisis, he still did not give the people relife on it, he even claimed that the depression would end within 60 days, that obviously did not. One of his plans was the emergency relife and construction act. This act made many building wich gave some people jobs, but not many. Hoover also tried to organize national optimism by asking businesses to not cut wages, but that didnt work either. So bacisly, Hoover had small ideas to try and get out of the depression, but he failed and was votes out of office.

Answer 3

Perhaps the greatest accomplishment of the New Deal was to ease the economic hardship faced by many during the Great Depression. While not being able to end the Depression, the New Deal did preserve the people's confidence in America's institutions and government. The relief measures of the New Deal were considered a success.

Not everyone supported the New Deal. As a formula for economic recovery, the New Deal failed. Many businessmen and financiers did not support the economic measures of the New Deal. With the recession of 1937, many business leaders and politicians claimed that FDR's policies were a failure and the attempt to maintain prosperity during peacetime was not successful at all.