What Does New Deal Mean
The expression New Deal belongs to the English language and can be translated as “New Deal” . So he called US President Franklin D. Roosevelt to economic policy , in the decade of 1930 , implemented to minimize and reverse the consequences of the Great Depression .
The origins of the Great Depression date back to October 1929 , when the US stock market collapsed registering a historic fall. This led to a deep economic crisis that passed from the United States to the rest of the world .
With the intention of reviving the economy , Roosevelt launched the New Deal in 1933 . It was an interventionist plan to transform financial markets and assist the most vulnerable sectors, which was carried out in two large stages.
The New Deal began in '33 with concrete and quick proposals to get out of the emergency . The North American president, within this framework, implemented social assistance programs and promoted state investment. Then, between 1935 and 1938 , Roosevelt reinforced the New Deal by favoring the redistribution of resources through social security laws and support for unions.
According to historians, the New Deal was very important on a social level as it improved the quality of life for millions of people who were in poverty due to the Great Depression . However, they also warn that it increased the fiscal deficit of the United States and that it failed to solve the problem of unemployment.
It is noteworthy that several of the measures of the New Deal remain in effect until today. Among them, different government agencies born at that time that continue to function.
Generally, the first stage of the New Deal is referred to as "the first hundred days," during which various laws related to more than one field of the United States economy emerged . Almost all the measures were taken in the shortest possible time with the aim of solving the most serious problems; All of this was done according to Roosevelt's empirical method, which was based on the following three pillars: welfare, recovery, and reform .
Thanks to this determination, a day after his presidential inauguration , Roosevelt took the first step with the closure of all banks nationwide. Four days later, in a session of Congress the so-called Banking Emergency Law was proposed . It was drawn up at night, reached Congress at noon, and that afternoon it was ratified. On March 12, through a radio communication, Roosevelt addressed his people to detail his policy and goals.
After this milestone in his government, over the one hundred days mentioned above, fifteen more laws were voted , which is why this period acquired so much importance. It is worth mentioning that the projects were not designed well in advance or studied for a long time, but rather bordering on improvisation rather than meticulous calculation, given the emergency situation from which they had to emerge.
In other words, the government was seeking to improve the situation with short-term solutions so as not to risk acting when it was too late. The reforms that were implemented as a result of the New Deal had a global scope, which included all sectors, starting from the agricultural and reaching the industrial sector. In the same way, some projects arose that looked for a solution for unemployment; For example, the youth-oriented Civilian Conservation Corps was created in March 1933 and focused on single men, initially between the ages of 18 and 25, but later ranging from 17 to 28 years. .