The New Deal: The Causes Of The Great Depression

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Milton Friedman, an esteemed economist, once said that “The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.” The United States during the 1930’s was in tatters. Unemployment was sky-high, there was overproduction and underconsumption simultaneously, people were starving and companies were bankrupt. In a time of uncertainty and trepidation, Franklin D. Roosevelt came up with a plan to boost the American people from the deep abyss that was the Great Depression : the New Deal.
November 1932, proved to be a hopeful time for many Americans, FDR had just been elected and his New Deal promised Relief, Reform and Recovery for the people. It promised to restore the credibility of banks, reduce unemployment and stimulate economic success. Furthermore, it vowed to deal with the staggering low GDP and increase the role of the government in the country. Most importantly, it pledged to offer what the American people needed the most: help .

Democrats believed that the New Deal was the only effective solution to the problem ; many modern day historians such as Lawrence David, also attest to this, saying that the New Deal created "capitalism with safety nets and subsidies” . However, many Republicans felt that the New Deal interfered too much in people’s lives and that it gave the government too much power ; they were now directly dictating the daily lives of common
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