Tuesday, March 20, 2018

What are some of the lasting effects of the New Deal?

Upon taking office as President of the United States in 1933, Franklin Delano Roosevelt was faced with a country in the throes of the Great Depression. In response to this mass suffering Roosevelt established a number of federal agencies and laws that are still in existence, and relied upon today. The establishment of these various agencies and programs has been termed to New Deal.
The largest and most prominent of the New Deal programs still in existence today is the Social Security Administration. This social aid program pays out old-age pensions funded through the tax system and serves as a much needed source of income for many senior citizens today.
Aside from the establishment of the Social Security Administration, the New Deal also instituted a number of laws in existence today, such as a ban on child labor, limiting maximum working hours and the establishment of a minimum wage. The Securities and Exchange Commission was also established to serve as a watchdog agency monitoring stock market activities.


The New Deal had many lasting effects. The New Deal led to the creation of a minimum wage and Social Security. Franklin Roosevelt's New Deal also led to the United States government becoming directly involved in the electric industry with the Tennessee Valley Authority. The government created many internal improvement programs in order to get the American people working again—many state parks got their start as part of a Civilian Conservation Corps program. Also, many murals championing labor still exist from the work of the Works Progress Administration. Roosevelt created the Securities and Exchange Commission and the FDIC in order to regulate the banks and stock market so that another catastrophic financial collapse would not happen again.
The most important legacy of the New Deal, however, is what it did to the American public psychologically. After this, the Democrats would be tied to the creation of social programs and government spending—though not all Democrats thought this was the way to fix the Depression, Roosevelt helped to ensure that the Democratic Party would be the party for the poor. Also, New Deal programs led to people expecting government to do something about financial downturns. This would lead to increased government spending and less public satisfaction with one's Congressional leadership when the economy became bad.

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