How Did The New Deal Affect The Economy

When Franklin D. Roosevelt took office in March 1933, the country was in atrocious economic condition, banks were collapsing, businesses were failing and the stock market continued to plummet. The New Deal was the beginning to an end of the American devotion to laissez-faire government and began to centralize power in order relieve such a crisis. Roosevelt's New Deal did undeniably represent a radical departure from previous American traditions in government and political economy. The New Deal was a plan designed for three purposes, relief, recovery, and reform. Actions of Roosevelt's administration set precedents for future presidents and proved that the Constitution could be adapted to solve the problems of a more modern era. Much of the New Deal legislation passed in the 1930s is still in effect today. The efforts made by the Republicans to end the Great Depression before Roosevelt was elected, proved that it was time for a change, the old ways of Social Darwinism and laissez-faire economics had proved hopeless. The changes the New Deal made to the U.S. government were certainly for the better. …show more content…
He placed more power in the hands of the federal government to control big business. The New Deal fixated on three R's; relief, recovery, and reform. While reform was not Roosevelt's first priority, his efforts to prevent another catastrophic depression have paid off. The biggest achievements of the New Deal were the unemployment rate went down, the economy stabilized, and the country abandoned the gold standard. With the New Deal President Roosevelt established many new organizations whose sole purpose was creating jobs for the