Different economic problems determined that the Progressive movement pushed the boundary between Democracy and Capitalism to the former, while the New Deal, to the latter.
To begin with, it is the rampant growth of Capitalism during the Progressive era that the progressive reformer used the power of municipal government to readjust the boundary toward Democracy. The increase of industrialism, immigration and urbanization did great damage to social welfare, as manifested in problems such as factory safety, women and children’s health, racism, etc. On one hand, they continue to expand Democracy through a series of social-justice movements - improve African American and women’s rights, advocate education and regulate food and drug. On the other
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The economic system was too weak to solve the problems on its own; devastated production system, crashed financial market, unemployment and poverty even made the nation on the brink of an abyss. Consequently, The government stepped in and tried as much as it can to restore and recover Capitalism without hurting Democracy. Firstly, to stabilize the banks on the verge of collapse, the New Deal government directly supervised and aided strong backs with resources and loans. Secondly, as factories constantly decreased production and cutback workers, the unemployment rates remained stubbornly high for years. President Roosevelt not only nationally recruited young men through the enactments of Tennessee Valley Authority and Civilian Conservation Corps, but also provided unemployed work relief through the establishment of Works Progress Administration. Thirdly, to stop the history of economic depression repeating itself, the New Deal innovatively proposed the Social Security Act for a more equal distribution of wealth. Brand-new social welfare system provided federal-state pensions and compensations to everyone especially to the old, disabled, and unemployed who suffered from poverty the