Effects of the New Deal

The effectiveness of the New Deal in helping overcome the Great Depression has been debated greatly since the 1930’s. List four positive results of the New Deal, as well as three negative criticisms or failures of the New Deal. Finally, state whether you think the New Deal helped end the Great Depression or was it only the coming of World War II that rescued the American economy?

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About Mr. Adams

I am a teacher at Anson County Early College. I teach US History and 21st Century Learning Skills.
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31 Responses to Effects of the New Deal

  1. [Drrnwtkns] says:

    The New Deal spawned many programs including FDIC, SEC, PWA, and the CWA. All of the programs benefitted the people of america. One down side to all this is that the programs were paid with deficit spending. The government had to borrow money. These programs did not help the economy the war did because of how the production of many needed items for the war jumpstarted it.

  2. jimlor says:

    Positive Effects:
    1) FDIC-Guaranteed that people would get some money back if the banks closed or became bankrupt.
    2) SEC-Stock market became regulated to help prevent another stock market crash.
    3) Fair Labor Standards- Working was limited to 40 hours each week.
    4) Gave people jobs.
    Negative Effects:
    1) National debt grew.
    2) Government’s power grew tremendously.
    3) Opened up new issues like welfare abuse.

    I think that the New Deal helped end the Great Depression, although it also needed the coming of WWII. The New Deal kept America’s economy alive enough for WWII to come as backup.

  3. travismartinrules says:

    Positive
    1. reestablished banks
    2. set up many new programs
    3. gave a lot of people jobs
    4. huge expansion of government spending and power
    Negative criticism
    1. Father Coughlin-should heavily tax rich and provide equal income for all
    2. Huey Long- home and college to all Americans;tax the rich
    3.Francis Townsend-proposed set income for elderly

    I think the New Deal really helped, because it allowed America to at least prosper long enough to be rescued by the war. It gave people jobs, and fixed the banking problem. It proved to be very effective, but wasn’t quite strong enough to completely get America out of it’s debt.

  4. treadaway3tiffany says:

    Critics of the new deal wrote:
    1. Even with the “New Deal” the economy was still in a ression (It had not recovered)
    2. People demanded even more money from the government
    3. Some thought that the money provided was only enough to keep people from starving.

    Four positive things about the new deal:
    1. the FDIC gave people a guarantee that their money would be insured in case a bank was closed
    2. The SEC was formed to help prevent another stock collapse by regulating the stock market.
    3. The SSA program was developed and people that needed money the most, those that can’t work and huge families that don’t make enough to support their children, were able to get social securrity
    4. Anti-Union practices were banned

    I am not sure wheither America would have made it finantially without the second world war, but it was already on a slow climb out of poverty on its own. Reguardless, some of the programs from the “New Deal” have made a great influence on more modern government, and without some of them, we might have been in a second “Great Depression” with our last ressession

  5. Four positive results of the new deal are FDIC-where the government guaranteed that people will get their money back if banks closed; He created jobs for people kind of like the PWA; the Agricultural Adjustment Act- which aided farmers and controlled prices; Social Security- provided the elderly with an income source after retirement. Negative Effects were critics not agreeing with Roosevelt, borrowing money to pay debt which leads us into more debt, and the fact that people were starting to get greedy and asking for more after much was given. I believe that the New Deal did help end the Great Depression but also led us into World War 2 because it was just the beginning of things. Now that America’s economy was bad it was perfect time for war.

  6. jessekeziah says:

    Positive- Helped innovation, helped experimentation, created jobs, helped out the economy.
    Negative- prolonged the depression, Raised income taxes, and it gave the government more power.
    I think that the New Deal did not help out the depression. I Believe that it made the depression longer. The only thing that saved America was WW2.

  7. janaes16 says:

    Positive Results
    -It helped pull us out of the Depression.
    -It employed many Americans when there weren’t any other jobs.
    -It helped expand size of federal gov’t
    -It brought social security benefits.
    Negative Results
    -Lead to welfare abuse in different parts of the country
    -inflation continue to exist
    – it added to the deficit cause we had to borrow money for it
    On the surface World War II seems to mark the end of the Great Depression because the new deal was only the beginning of the depression.

    • caroleibryan says:

      I wonder if the great depressionwa s solved in a less expensive way, would it have affected the great debt that we have today?

  8. michellexiong01 says:

    Four positive results of the New deals are regulating the stock markets (SEC, Securities and Exchanged Commission), employing the American people, guaranteeing money back if banks close (FDIC, Federal Depositors Insurance Corporation), building for the public (PWA, Public Works Administration), and also to aid farmers with controlled prices (AAA, Agricultural Adjustment Act).

    Three negative criticisms about the New Deal are that many people (especially the Republicans) didn’t believe the government should be involved with the various programs, people started to demand more, and heavy taxes on the rich to provide equality in the incomes (leaning more toward socialism??)

    Honestly, I really don’t know about both, yet I am leaning more toward the WW ll idea. If we didn’t enter the war and stayed isolationism, we the American people will still be barely surviving with the New Deal. The war brought more services to be available, and it brought more people to fight in the war.

  9. caroleibryan says:

    Benefits
    1. Psychologically the New Deal helped Americans because they felt like the government was doing something to help their lives and that the government was on their side.
    2. It expanded the government spending and power
    3. Some of the programs are still used today (FDIC, SEC)
    4. It helped bring the economy out of the recession

    Negative
    1. It increased national debt
    2. Some of the programs were unconstitutional
    3. It didn’t fully recover the American economy

    I think that the New Deal did not fully help America recover from the Great Depression. Yes, it did help the economy improve, but as soon as FDR lifted the New Deal off of America, the economy started to decline. Since WWII came, it gave many people jobs and it helped the economy back to its original position.

  10. rushingsylvester says:

    Negative Effects/ Criticisms:
    1.A negative effect was that it led to the abuse of welfare.
    2.Huey Long criticized the New Deal by saying“Every man a King”: home and college to all Americans. TAX THE RICH.
    3.Abuse of executive power.

    Positive:
    1. It gave relief for the unemployed and poor.
    2. It helped the recovery of the economy to normal levels.
    3. It reformed the financial system to prevent a repeat depression.
    4. Some of the policies that were created are still in use.

    I think World War II was the leading factor that got us out of the Depression.

  11. sylviavang says:

    The New Deal in the 1930s were a huge impact on the United States depression. There was the Alphabet Soup movement. It had the FDIC, which helped construct the way the banks in America was processing. There was TVA, the Tennessee Valley Authority. It was a movement to build dams, electricity, and extra sites for the society. AAA was a movement called Agriculture Adjustment Act. It gave farmers right to control their crop prices and it also put people to work. The Public Work Administration influenced the plant factories and public government owns to be built. The negative effects to the New Deal was the republicans views. They opposed the movements FDR was creating. It was hard for them, but they had no choice between depression or success. There was a controversy in one of FDR’s idea. He wanted 15 justices who supported the New Deal, but congress rejected and did not grant his need.
    From my point of views and thoughts, I agreed with what FDR had for the “destructed” nation. He prepared so many economic benefits and and increased his people’s courages. There were big changes and new ideas for United States. This was not only a good way to increase respect from the country, but from other nations also.

  12. genniferkjones says:

    The positive outcomes of the New Deal were as follows;

    -restructured the landscape as public grazing land, and allowed remaining livestock ranchers to lease the land for their cattle.
    -FERA developed which paid attention to economic distress.
    – It employed many Americans.
    -brought about more benefits.

    Negative;
    – Lead to abuse of benefits.
    – It didn’t end the Great Depression.
    – The New Deal didn’t solve all problems America faced.

    In my opinion the New Deal was a big help to Americans. The New Deal allowed many people to find jobs and get help from the government. I think the New Deal was a success because of relief, recovery, and reform. This stated that help was needed for unemployed people, the economy could get over the depression, and the government could be fix and readjusted.

  13. brookepuckett says:

    Franklin Roosevelt’s new deal helped the economy in several ways, including that it provided jobs, social security began, the FDIC was started, and the stock market was regulated to where no one could buy on the margin. Although the new deal was successful in many ways there were negative aspects of it also including the growth of government, deficit spending, and parts of the government declared the new programs unconstitutional. I think that FDR’s new deal did help the American economy in many ways, but also WWII really helped the economy.

  14. 7jesse7cunningham7 says:

    Negative
    1.A negative effect was that it led to the abuse of welfare.

    2.Huey Long criticized the New Deal by saying“Every man a King”

    3.Abuse of executive power.

    Positive
    1. It gave relief for the poor.

    2. It helped the recovery of the economy to normal.

    3. It reformed the financial system and prevent a repeat depression.

  15. brittanylittle93 says:

    The New Deal created by FDR had a big influence on the Great Depression. The New Deal created many agencies that gave people jobs. Within the New Deal, Roosevelt also had what he called “fireside chats” in which he reassured Americans of what he was doing. The New Deal also provided the elderly with a set income under a program called Social Security. Another positive effect of the New Deal is that it improved labor relations by giving workers 40 hours a week. Some negative effects of the New Deal are the AAA, the NRA, and the idea of courtpacking. The Supreme Court didn’t like these ideas or programs because they thought they were unconstitutional and that they would interfere with checks and balances. I think World War II helped more than the New Deal because the U.S. had to produce weapons for Britain as well as themselves because Americans joined the war later.

  16. kelseygathings says:

    Negative
    1) Led to the abuse of warfare.
    2) Huey Long criticized the New Deal by saying “Every man a king”. Tax The Rich.
    3) Gave a lot of people jobs.
    Positive
    1) Unemployed and poor they were happier again for the jobs opening.
    2)Economy was back to normal.
    3) It reformed the financial system to prevent a repeat depression
    4) Policies are still in us that were created back then.

    I think that the World War 2 was the help that got us out of the Depression.

  17. lucretiatillman says:

    Positive Effects- It helped pull us out of the Depression. It employed many Americans when there weren’t any other jobs.

    Negative Effects- It has lead to the welfare abuse seen in many parts of the country today. The growth of the government could also be a negative effect.

    NEW DEAL BROUGHT SOCIAL SECURITY BENEFITS. BUT IT DID LITTLE ABOUT THE SOCIAL PROBLEMS IN THE SOUTH BETWEEN WHITES AND BLACKS

  18. stephenlittle1 says:

    Positive:
    1.) PWA- Built Power plants and schools.
    2.) FDIC-Government guarantee that people will get their money if bank closed.
    3.) AAA-Aid farmers, control prices.
    4.) CCC- Hired young single men to preserve natural resources, beaches, parks, etc.
    Negative:
    1.) Too many people abused the system above.
    2.) Increased national debt.
    3.) Created more problems in the end than before.

    To me, the New Deal was a temporary fix to a long term problem. Instead of pulling out when everything seemed fine they should have found another long term fix.

  19. Dareus "Da Flare" Little $$$$$ says:

    Positive Results
    -It helped pull us out of the Depression.
    -It employed many Americans when there weren’t any other jobs.
    -It helped expand size of federal gov’t
    -It brought social security benefits.
    Negative Results
    -Lead to welfare abuse in different parts of the country
    -inflation continue to exist
    – it added to the deficit cause we had to borrow money for it
    On the surface World War II seems to mark the end of the Great Depression because the new deal was only the beginning of the depression.

  20. thomasbentley21 says:

    Four positive things about the new deal were the programs he created. Some of which gave building type jobs to the people, banks became insured people would get their money back if a bank closed, companies were made to regulate stock so people didn’t use to much credit, and people got acting or writing jobs which were needed heavily in this time. Some negatives were people thought the new deal wasn’t helping at all, the rich complained about heavy taxes, and some people were still hungry. I believe the New Deal helped get people out of the depression more than what they think. It gave people hope, and it gave a majority of the people enough money to live and at least they had a job to keep them going. World War two was the main reason America got pulled out of the depression but FDR’s New Deal deserves some credit cause at least he helped unlike Hoover.

  21. lexilandis says:

    Positive effects of the new deal are as follows: Helped people get jobs and support themselves. It allowed farmers to have the aid that they needed (AAA). It caused an increase in buildings such as power plants that helped us (PWA). It also helped people trust their government more.

    Negative effects: People began to rely too much on the government instead of themselves. It increased national debt, a substantial amount. It also led to the abuse of government authority.

    The new deal was definitely needed for us to get out of the depression. However, we’re now suffering from a great deal of debt. It’s as though there really is a price for everything in life.

  22. NicoleWilliams says:

    1.) The New Deal helped Americans because it developed the thought that the government is helping them.
    2.) It helped with the recession at the time.
    3.) Some of the programs that were developed during that time are still used today, such as the FDIC.
    4.) The government gained more power.

    Negative
    1.) The national debt increased.
    2.) Some programs that were put in place during this time were found to be unconstitutional.
    3.) Many people abused the system.

    The New Deal did not fully recover the economy, but it did play a part in bringing America out of the recession. I think what helped America get out of the Great Depression was World War II. WWII offered many people jobs, which boosted the economy of America back to normal.

  23. Positive:
    1.FDIC-guarantee that people would get their money.
    2.SEC-Regulates stock market
    3.PWA-Help build schools roads etc.
    4.CWA-Government pays artist, musicians etc.

    Negative:
    By the 1930’s the economy still had not recovered. These people had some kind of negative effect on particular groups of people from the rich to the ederly. All caused by the new deal, taxes became a major factor.
    Father Coughlin- a priest that overtaxed people to provide more equal income.
    Huey Long-Taxed the rich
    Francis Townsend-proposed to set income for elderly

    I think that the new deal was both good and bad it helped find jobs for people after the great depression but arguments and criticism led to rash changes which led to WW2. Some people argue that the new deal was good while others say it was bad. I think it helped more than it started WW2. The new deal helped people get back on their feet after the great depression.

  24. zacharymcmanus says:

    GOOD:
    1)Gave people jobs
    2) It gave relief for the poor
    3)Fair Labor Standards- Working was limited to 40 hours each week
    4).SEC-Stock market became regulated to help prevent another stock market crash.
    BAD:
    1) it led to the abuse of warfare
    2) it led to the abuse of government power
    3) It didn’t help American’s like it was meant to

    I believe that WWII is what helped the US economy because it created more opportunities for people. It helped people get out of debt.

  25. keanapolk says:

    1.) WPA helped build public roads, schoools, and parks…money was included.
    2.) Social Security helped the elderly to have money
    3.)FDIC- The government guareenteed that people will get their money if Banks was to close.
    4.) Rural Electrification Administration: GOVERNMENT INSTALLS POWER LINES IN RURAL AREAS IN SOUTH: PEE DEE ELECTRIC

    1.) Droughts
    2.) Increased the nations debt
    3.) it did not completely end the depression

    I think that it helped the depression a lot but not fully. When the New Deal ended, more problems aroused that even the government couldnt fix with the New Deal.

  26. maddisonteal says:

    Positive Results
    – The Government gained a lot of power
    – It helped people get jobs.
    -It helped social security
    -It helped pull out of the great depression
    Negative Results
    -People took advantage of it
    – caused a lot more problems than already had
    – debt was increased

    This was a great thing to pull us out of depression, but also had a few negative sides. It created major debt and problems. The new deal helped a lot but also cause a lot of problems.

  27. juliangomes says:

    Positive:
    1.Some of these programs are still around and help us today
    2.provided relief for U.S citizens
    3.helped the banks
    4.helped bring us out of the depression
    Negative:
    1.incresed government power and spending
    2.created deficit spending leading to debt
    3.a lot of people abused the system

    Overall the new deal was a good thing. Yes their were some bad things buts that true about anything. The good positive effects outweighed the negative ones because it helped people survive and gave them hope.

  28. chrisallen555 says:

    Good Outcomes:
    1. Created minimum wage
    2. The FDIC was made and it made sure that if a person lost almost all his/her money in the bank, they would have a certain amount safe.
    3. Created Jobs for people in America
    4. Made a way out of the Depression
    Bad Outcomes:
    1. Raised power of government
    2. Increased debt
    3. Abuse of govt. power

    I dont think the New Deal alone ended the Depression. I believe the New Deal “buffered” our economy, and WW2 fully helped bring us out of the Depression.

  29. tiffanygatewood says:

    Positive:
    1. Social Security
    2. Helped end the Great Depression
    3. Brought on more jobs
    4. Banned Anti Union practices

    Negative:
    1. Abuse of welfare
    2. Didn’t help with the social problems in the South
    3. Became more social

    I think that the New Deal was only the coming of World War II. Even though it helped in some ways, it still didn’t fully recover America.

  30. courtneyallen00 says:

    Postive
    1.) The FDIC-insured the banks and guaranteed that people money would be insured if the banks ever failed again.
    2.) The SSA program helped poor to middle class family who could afford everyday expense. Helping to keep families a float and out of debt.
    3.) The SEC program was formed to keep the stock market under control and keep it from collapsing again.
    4.) Developed a lot of programs and ideas that are still in use today

    Negative
    1.) The New Deal didn’t pull America out of the recession.
    2.) Income Taxes was raised
    3.) The thought that government gained more power than they needed

    I don’t think that the New Deal helped the problem at all. It sounded really nice, but wasn’t supported enough to work. The New Deal costed America more money.

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