Did the New Deal undermine American capitalism?

Answer 1

New Deal did not do much economic damage as did Hoover polices of protectionism, and not allowing the dollar to be flexible means of exchange.
Speech by Ben Bernanke, November 8, 2002, "The Federal Reserve Board, retrieved January 1, 2007 this gives good explantion what caused the great depression.

The first episode analyzed by Friedman and Schwartz was the deliberate tightening of monetary policy that began in the spring of 1928 and continued until the stock market crash of October 1929. This policy tightening occurred in conditions that we would not today normally consider conducive to tighter money.

Fed destroyed the economy with fautly thinking regrading the role the federal reserve, and new deal programs were goverment pork, but they save America from more extremine forms of goverment like fascism, and communism at the time.

New Deal did not work all that well, but FDR was a realist and realize the economic thories praticed then would not work like it did in 1907 with goverment protecting the bigger banks.

New deal brought Social Security, and Min Wage and other goverment programs and intervention of the goverment in the economy. Markets are human as is the goverment, so you have to balance the roles out so society feels included , and investors can make profits.

Answer 2

Holy Cow do I disagree with hick. Everything about Hoover and Benanke is true. But FDR was the crack in the dam. Once the American people got a taste of other people's money, that was it. Give me more!! Thus massive government programs became expected.

“When the people find that they can vote themselves money, that will herald the end of the republic.”
-Benjamin Franklin
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