did the new deal solve the problem of the great depression?

Question

did the new deal solve the problem of the great depression?? discuss some of the shortcomings and accomplishments of roosevelt's approach to the crisis of the 1930s.

Answer 1

No, the New Deal did not actually bring about an end to the Depression. The New Deal operated on the principle of pump priming, which means that money must be forcibly put into an economy in order to give people incentives to work. Make-work projects like the Tennessee Valley Authority and high taxes on the rich helped, but ultimately World War II was what put the middle class to work and the country on the course of economic recovery. Ultimately, Roosevelt's approach was little more than redistribute the wealth, it didnt help having guys like Joseph P. Kennedy (JFK's father)ripping off the stock market with insider trading tips and selling out making millions in the process (the org. that now enforces insider trading laws was made under FDR). I doubt that the Depression was brought about by unequal dist. of income, b/c guys like JPK were getting away with basically stealing the market!! JPK sold out all his stocks just months b4 the stock market collapsed on 10-29-29!!!!!!! The TVA was a completely government administered and funded project with only tax monies funding it. There were other "alphabet soup" government projects also. Actually, the economy stagnated for a while during FDR's presidency. Yes, its safe to say that WWII saved the economy. Today, there are two major economic theories: Supply-based economics and demand-based economics. Roosevelt tried the demand-based economics, which says that as the wealthy increasingly take in more income, the lower class loses their incentive to work and stop eventually. Supply-based economics says it doesn't matter how much money is to the rich b/c with the rich gaining wealth, a larger and larger middle class emerges that's working, and the larger and larger it gets (this is why Democrats often call this theory 'trickle down economics')

Answer 2

No. The new deal took a mild recession and turned it into a deep depression. FDR's massive borrowing of funds, for public works projects, right at a time when the only hope of a recovery was low interest rates for businesses, pushed up interest rates excessively.

Also, there was a deeply flawed monetary policy of a decreasing money supply caused by hoarding, and a 100% lack of consumer confidence, that FDR could have easily fixed, but didn't comprehend and ignored.

Answer 3

Along with some new programs, FDR put into place some programs proposed by Pres. Herbert Hoover.

WPA, CCC, SSI were some of FDR's programs.

Can you say World War Two?

Answer 4

no

What really helped was the second World War which jump started the economy.