The New Deal in part started a debate in the United States about the role of the federal government.
Explanation:
The New Deal was a series of legislative reforms implemented by President Franklin D. Roosevelt between 1933 and 1937 to save the United States and its economy from the grip of the Great Depression of the late 1920s. The reforms were designed to alleviate the plight of the unemployed and the poor, to consolidate a depressed society and to reform the economy to avoid further economic downturns.
In practice, the New Deal meant Keynesian economic policy, in which the federal government sought to create economic growth by supporting employment through public investment. The investments were mainly financed by debt. The federal government provided $ 500 million (about $ 9.25 billion in current funding) for state and city employment programs. To avoid further depressions, the Roosevelt administration significantly increased economic regulation, especially for the banking sector. The most famous of these was the Glass-Steagall Act, which prohibited banks from risking customer deposits on the stock exchange.
With the New Deal, the US economy recovered and unemployment began to decline. For Roosevelt, the New Deal was a well-established popular affair, and he remained president until his death. Roosevelt was elected president a record four times.
There is a minority of economists who believe that stimulus measures exacerbated the recession. Poor and long-lasting economic recovery is seen as the result of government action. Some economists believe that without the New Deal government measures such as social security, unemployment insurance, compulsory minimum wages and special government privileges for trade unions, businesses would have been able to employ more workers.
