The New Deal social studies lesson for kids
The New Deal social studies lesson for kids - social studies skills studied in 2nd, 3rd, 4th, 5th grades.
America had been battered and bruised by the Great Depression, and Franklin D. Roosevelt promised he would bring it to an end. After experiencing 4 waves of bank failure, 25% unemployment, and the droughts of the Dust Bowl- Americans were ready for the government to rescue the country.
The New Deal was the opposite of what former President Hoover had done about the Depression, which was nothing- assuming it would pass in time. Roosevelt pushed Congress in his first 1200 days to pass 16 new laws and agencies, which put subsidies and safety nets in place along with capitalism. These safeguard our finances still today, with programs like Social Security, the Securities and Exchange Commission still being in place.
Hoover was more concerned that stepping in with economic assistance would stop people from working. His biggest worry was keeping his budget balanced, but as the Depression continued the government’s income fell, to combat this Hoover cut spending more. He ignored pressure from Congress to take action, and the Depression worsened. FDR’s goal after being elected President was to reverse the downward spiral. His goal was three-fold: relief, recovery, and reform.
The New Deal was launched in three waves over 1933 through to 1939. There was a total of 47 different programs designed to stabilize the financial system, and offer relief to farmers, and provide jobs to the unemployed. Conservative businessmen were critical in 1934, calling the New Deal socialist policy. Others claims it wasn’t sufficient to help the poor. Nevertheless, FDR persisted, adding extra programs. This included the Gold Reserve Act, Securities Exchange Act, and the National Housing Act.
At one point cuts were made to the New Deal, and this pushed the economy into another Depression. At this point, FDR pushed Congress to put a relief program into place, to the cost of $5 billion, and it established a minimum wage, record-keeping, and overtime pay, as well as regulations for bank lending. Continue reading below>>>
Was It Effective?
Did the New Deal end the Great Depression? After the first wave was launched, we saw the economy grow by almost 11%. The second wave saw the economy grow almost 9%, and the third by almost 13%. When government cut spending, the economy fell by over 3%. From 1932, which was a year before the New Deal was enacted, through to 1941 when the US entered the 2nd World War, debt grew by $3 billion. Defense spending quadruped in 1942, and by 1943 had tripled to $64 billion.
If that level of spend had been during the New Deal’s first year the Depression would have been over immediately, and there are many who suggest this could have prevented World War 2 altogether.