The New Deal was set up by the administration of Franklin Roosevelt. Several goals were attached to this deal. While numerous benefits have accrued to this deal, still criticism has been eminent. The New Deal comprised of several economic programs that were to be implemented back to back and taking place in the first term of the 32nd president of the USA (Edsforth 1). During the First World War, many agencies had to be disintegrated with very few programs being put in place. According to the College of Staten Island (86), there were notable migrations in the inner cities because of the great depression and the New Deal was mean to alleviate this.
Majorly the programs were being set up to counter the great depression that had occurred in the 1930s. According to Edsforth (2), there was a great desire to alleviate soaring unemployment levels, resuscitating the economy back to upbeat levels and a total makeover of the financial system to ensure that there would be no repeat of the depression. One of the major consequences of the New deal was that it led to new political realignments causing the Democratic Party to be most popular. According to the College of Staten Island (89), there was a clash of various movements that is those that were for and those that were against the new deal. Further, the author deeply blames the ramifications of the war as those having hurt the country.
The new deal programs that were implemented are still of the essence in the current state of America. The national pension system funded by taxes that are charged on employers and employees is very crucial in current times. They do not only pay out retirement benefits to those persons in old age but also other categories of persons like those with disabilities. In the New Deal, the president undertook a few steps in terms of social security by extending it to another 10 million people with employment compensation covering another 4 million people (The College of Staten Island 88). Secondly, the oversight of labor practices represents a second program that was implemented in the new deal that still has immense effects in current America. It was created by the Wagner Act. Moreover, the emergency banking Act represents another of such Acts. People’s deposits that were made in the banking institutions were secured because of any panics that would possibly arise in the market. Due to this, public confidence was restored in not only the banking system but also in the investment sector of the country.
The national industrial recovery Act of 1933 was segmented into three. The first segmentation was that of public works administration; which was vital in managing projects of national interest. Equally, the national recovery administration helped to establish some codes that were to govern employment aspects like hours worked and unfair competition. This helped to increase productivity in the industries. Trade unions under this Act were given the power to fight for the rights of their members and rightly represent them in areas where they needed. The declaration of this Act as being unconstitutional in 1935 led to the loss of the myriad benefits previously enjoyed. However, according to the Staten College of Island (87), the new deal was perceived as one that had brought social order among the people; increasing purchasing power and stabilizing labor relations.
The agricultural adjustment Act of 1933 is yet another Act that constituted the New deal. It however is not mentioned as a successful one since it led to the doubling of farm prices at a certain point in the course of its implementation. The Act called for payment of farmers to limit the products that they were to yield. This is seen as one of the most ineffective acts under the New deal. The Tennessee Valley Adjustment Act of 1933 endeavored to greatly develop Tennessee agriculturally. This program was a success. Regeneration of the valley was eminent with huge success.
The National Labor Relations Act set up by the new deal endeavored to impress upon the employers to deal directly with the Labor Unions. Collective bargaining was also facilitated as employers could form their unions. Bosses who did not want to abide by the established regulations. This program was a success since membership to the unions kept growing day by day. Equally the relations between employers and employees were smoothened. The congress of industrial relations was a replacement for this Act in 1935.
Another crucial Act that was the pillar to the Deal was set up in 1935 was the Social Security Act. This formed the pension fund that was to pay the retirement benefits of employees. Despite opposition from Republicans, there have been a significant number of persons covered under this Act. There was the soil conservation Act set up in 1936 where farmers were compensated for leaving the land fallow or by planting nitrogen-fixing crops. There was also intensified research in areas of soil conservation which led to better management of soil. However, crop yields were affected negatively in some periods.
Another Act set up under the new Deal that has immensely improved lives was the Fair Labor Standards Act that sought to reduce the number of hours that one was to work. The minimum wage level was also raised. Though effective, the inflation level rose due to this minimum wage implementation. Over 30 million people got protection from this program.
Finally, the agricultural adjustment Act was aimed at maintaining a minimum income for the farmers. This Act allowed farmers to receive subsidies for their production processes. Several agencies were established so that the Deal may be implemented in its fullness. Among these were the Farm credit administration, and Reconstruction Finance Corporation.
In conclusion, the New Deal has come under intense criticism. Some of the Acts in the Deal were considered to be retrospective. Most economists inclusive of those who initially supported the New Deal have been of the opinion that the policies put in place were very erroneous. Some still argue that the New Deal only worked to lengthen the depression. Protests rocked the country as one of the effects of the new deal was just beginning to be felt all across all the people divides (The College of Staten Island 94). On overall terms though, the deal helped, to some extent, pull the American economy out of the great depression. Further, most of the Acts are either still in use currently or were modified a little to fit the current needs of the United States and are now in use.
Works cited
Edsforth, Ronald. The New Deal: America’s Response to the Great Depression. Massachusetts: Blackwell Publishers, 2000. Print.
The College of Staten Island. These United States” COR100 United States Issues, Ideas, and Institutions. New York: The McGraw-Hill Companies, Inc., 2007. Print.