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Essay / Negative Effects of the New Deal - 1208
The New Deal was a strategy to help bring the nation out of the Great Depression, launched by Franklin D. Roosevelt in the 1930s. It was a plan to bring about economic recovery, relief and reform to the nation. The New Deal included many different programs, some providing a safety net for the elderly, programs allowing poor Americans to fund a wildcat writers' project, a rural electrification administration, and programs allowing America to return at work, adopted in the United States without any specific text. He improvised plans for how to deal with the Great Depression when Roosevelt took office while Congress "listened" to many different voices. The origin of the New Deal was Roosevelt's plan to direct federal emergency aid to highway projects. The positive part was that it helped banks that were closed for 4 days due to the emergency banking law. Many banks did not reopen and were closed; secure banks were given public banking services, which allowed the country to regain confidence in banks to store their money rather than in a mattress. This also had a positive effect for farmers by not over-cultivating and leaving more land fallow; help indebted farmers pay off their mortgages. The Agricultural Adjustment Act provided the government with the power to influence prices by destroying surpluses while compensating farmers for their loss. The Civilian Conservation Corps helped by providing conservation work to unemployed youth. The Federal Emergency Relief Administration provided loans to states so they could administer relief programs. FERA also gave state officials a dollar for every three dollars spent on the homeless. Their main goal was to reduce household unemployment by creating new unskilled jobs in local and state governments. The Public Works Administration provided low-priority work and low wages to the unemployed, which reduced unemployment overall. Some of the negative aspects of the New Deal were that it upset the balance of the federal budget, which created a huge deficit for the nation while failing to end massive employment. Many thought he hadn't gone too far. Franklin Roosevelt's program, according to Keynesians, called for massive government spending to stimulate the economy. Roosevelt was failing with major tax increases, and to replace him, money was borrowed to finance the program. Roosevelt ordered government spending cuts when he became concerned about inflation as the economy showed some slowdown.