How Did The New Deal End The Great Depression?

The New Deal was successful in terms of providing relief and improving economic conditions . The first New Deal focused on economic recovery. It introduced laws that would prevent corruption and irresponsibility in the banking system which prevented banks from failing for the entire year of 1936. It also created several agencies, such as the NRA, aimed at providing relief to the people. Such agencies provided work for many unemployed American citizens through government jobs or public-works projects, however, it was not enough as there were still thousands of Americans who were unemployed. The New Deal also made housing cheaper to buy. The first New Deal did not end the Great Depression but it did manage to provide relief to many citizens, though it was not able to aide a majority, especially farmers who did not own property. The second New Deal focused on economic security, which successfully improved “economic conditions in the United States” (Foner 847). For example, FDR created an agency which taxed large fortunes and companies and then distributed products as evenly as the government would allow. The New Deal had many limits which prevented it from ending the Great Depression.

The New Deal made radical changes that extended the reach of the government and its direct influence with the people, working to “guarantee...economic security for ordinary security for ordinary citizens” (Foner 847). Before the New Deal, liberalism meant a limited government and a free-market economics. Due to this, the American people began to expect more from the government and became the modern definition of liberalism. By 1940, a liberal in America believed the government should be actively support American citizens and ensuring aide to those who needed