The new deal program was established in the year 1993 by president Franklin.D.Roosevelt of the United States is a kind of regulation/project enacted to meet the needs of the citizen against depression, thereby setting up relief and recovery programs.
The main effect of the new deal is to set up recovery means for the economy during times of inflation or an increase in price. It was a forum to help everyone stay ahead or not suffer from inflation which causes depression. Although it was supported by many, it still has some disadvantages.
Pros of the New Deal
1. It increased the rate of employment in the nation– As of the time of its establishment, the new deal helped reduce the rate of unemployment in the nation. The program created a way in which the youth are employed. This system dropped the rate of unemployment to the nearest minimum.
2. Farmers benefitted greatly from this program– Since farmers are part of the people that suffer due to inflation, the new deal made them great beneficiaries. There was no lack of fertilizers, seeds, and other raw materials that was a challenge to them earlier.
3. The new deal brought back confidence to the American economy– Inflation/increase in price made the citizens start losing trust in the American Economy/government. But the new deal restored that trust/belief, thereby making everyone full of confidence of a better present and future.
4. Excellent developments in the nation began- Of course, this was the main goal of the new deal and it certainly attained that. With its establishment, excellent developments began in pivotal areas like schools, hospitals, roads, and others. It was a great lift for the nation.
Cons of the New Deal
1. Increase in taxes– When the new deal was established and started making waves, there was an increase in tax by some government officials with the excuse of it as a support to the new deal. This increase in tax caused issues as people didn’t like it.
2. It was unconstitutional– This was one major problem and disadvantage of the new deal because it is unconstitutional. In the constitution of the United States, something like that ought not to be done unless stated otherwise. Though the new deal proved to be a lift for the American economy, it operated unconstitutionally.
3. It took 5 years for its effect to be felt- The new deal didn’t do the needful for the economy but until 5 years time. This was a great disadvantage as it wasn’t expected to take long before effect. At this time, Americans were fed up and almost called for the cancellation of the new deal. Fortunately, after 5 years, its effect began to show for all to enjoy.
4. The new deal was in favor of the whites only-The new deal wasn’t all good as it didn’t favor black Americans. This was bad for the nation as the whites were the only ones benefitting through job employment and others. Many thought racisms were in effect which kind of spoiled the good effect of the new deal.
The new deal is still in place in America but has been modified in different ways. It proved to be an impactful program as it helped the economy from crashing.