Respuesta :
Answer:
It strengthened the view that government is responsible for the welfare of its citizens.
It created the Social Security Act, which resulted in the Social Security system.
How effective was the New Deal?
FDR is praised as a brilliant leader, but not because of the New Deal. The New Deal was ineffective and even affected the economy, but Roosevelt's efforts and maniacal optimism were contagious and gave the public hope that he was genuinely concerned.
First of all, I think the history on the Great Depression, FDR, and the economy in the 1930s and 1940s is a complete disaster. The commonplace "everybody knows that" narrative holds that Roosevelt lifted spirits, tried to put everyone to work, cared about the common man while Hoover did not, was prevented from assisting the nation as he desired by the supreme court, and that when World War II broke out, the massive government stimulus and control of the economy demonstrated the validity of Keynesian economic theory. The supreme court did succeed in thwarting his initiatives, and he was successful in inspiring people to trust in themselves—no minor accomplishment. However, the second reality in this widely accepted myth is that World War II actually took place.
What he did that worked
FDR was a magnificent politician with amazing drive and infectious optimism, all of which the country psychologically needed. He was, however, in matters of economics and his understanding of Stalin and the USSR, a dilettante. I personally believe the man fits the description if you were to do a search on “narcissistic personality disorder,” but that was hugely beneficial during the depression and WW2. For example, instead of explaining to the American people what a grave and dangerous situation the banks and loan institutions were in and that people must stop making runs on the banks, in his cocky and friendly manner he simply announced a bank “holiday” and the panic subsided. He had that kind of psychological effect on people. He also hired some—a small number, but those engaged were very appreciative—to work in photography, painting, documenting oral histories, or building of roads, swimming pools, or other infrastructure. Conservatives vehemently opposed such jobs initiatives, and economists today claim it wasn't enough to affect the macroeconomy, but it was appreciated and viewed as a comforting sign that he cared.
What he did that didn’t work
Hoover's ideas, his own, and a good deal of what could be nicely described as experimentation were used in part to inspire FDR's New Deal. Demagoguery against "cut-throat competition," the profit motive, and capitalism in general was another activity of his. He particularly liked the National Industrial Recovery Act. It may sound unusual, but it formed and made legal corporate cartels with the intention of lowering competition while increasing salaries and profits. This had the effect of discouraging enterprises that were stronger when the slump hit—better management, brand loyalty, R&D, smaller debt, etc.—from outcompeting one another. Additionally, salaries were artificially raised, which raised the unemployment rate. Here's a basic yet effective illustration: Let's imagine a company can hire 20 workers in a normal economy, or 24 at 80% of what the workers would want to be paid in a normal economy, but they are grateful they have a job while many others don't. Imagine if this company could only afford to recruit 16 employees and had to pay them 120 percent of what both the employer and the employees would consider to be fair in a normal economic environment. With unemployment rates between 15 and 25 percent, which is hardly what you'd call normal economic conditions, unemployment was by far the largest issue throughout the slump. The Supreme Court overturned the National Industrial Recovery Act and other FDR policies that artificially boosted unemployment in the "sick chicken case" known as Schechter Poultry Corp. v. United States. Basically, the federal government shouldn't have interfered with intrastate trade, salaries, or pricing.
