That new Deal was a bundle of economics and social reforms in the USA, which with solid national investments the Binnenkonjunktur sets in motion and, together with the introduction of a social security system, a progressive taxation and substantial shorter hours, which caused mass unemployment by the world economic crisis and - poverty lindern should. It began with the assumption of office of the president Franklin Delano Roosevelt 1933 and ended soon after the entrance of the USA into the Second World War (1941), which caused the end of the Great depression by the upswing in the war-important industries also. In the year 1943 a part of the measures was again abolished.

The term new Deal is meant a Idiom of the English language and in approximately as much as "redistribution of the maps" - the masses become impoverished should come thus again to prosperity.

History

Beginning with the of 1929 (black Thursday - in Europe black Friday) developed a world economic crisis, which reached its high point in the years 1932/33. Since this time two politico-economic camps face each other in the USA: Restaurant economics ("Conservatives") and trailer of national interventions ("Liberals"). Zuden the latter counts Franklin D. Roosevelt. He promised a "new deal for the American people" on 2 July 1932, the day of its nominating to the democratic presidency candidate, a term, which interspersed itself thereafter for the designation of the reforms accomplished by him.

Measures of the Roosevelt new Deal

The following measures were seized:

• the demand for trade union for a 30-Stundenwoche found support with the entrepreneurs and was introduced.
• A freiwilliger work service (Civilian Conservation Corps - CCC) was organized, which was used for the afforestation and soil improvement.
• For economic revival 122,000 public buildings, 1 million km roads and 77,000 bridges were built. For it different authorities were responsible (among other things civil Works administration - CWA, Works progress administration - WPA).
• The threshing floor lake Valley Authority (TVA) built 20 dams in the threshing floor sea-valley.
• Agricultural production was reduced, in order to create the Farmern profitable prices. The Federal Government granted to the Farmern for it funds from the Agricultural Adjustment act (AAA) of 12. May 1933.
• A firm legal basis was given to the trade unions, a formal right to strike was introduced.
• Kinderarbeit was forbidden.
• A national pension was introduced.
• An unemployment insurance was brought into being.
• A control system with low sentences for arms and high sentences for realms was introduced.

Became likewise important - however only at a later time of the Reciprocal trade Agreement act, with which the US Government put first bases for free trade according to the principle of the most-favored nation treatment.

Effects of the Roosevelt new Deal

Franklin Delano Roosevelt, the author of the new Deals, was Pragmatiker. Its reforms were affected in certain extent of John May pool of broadcasting corporations Keynes, them were the basis however still no fully prepared theory. Instead they oriented themselves at obvious social problems, which should be solved by individual measures. Which was the basis the different measures, however indeterminable gaping of production capacities and overall economic demand was as well as the political will not to wait any longer for the fact that the market mechanism solves the poverty problem from alone.

The different measures had first an animating effect on the job market, which provided however only brief Linderung. Shortening the public expenditures for the containment of the national indebtedness led 1937 to the so-called "Roosevelt depression". The US Government recognized that the world market was used, for the American to take up and therefore strove around trade liberalisations which collided in particular with the bilateral bartering practices of LV Germany.

For complete recovery of the economy finally provided the increased war production, which supported first France and Great Britain and finally after entrance of the USA into the Second World War the US troops served.

It is remarkable that with that new Deal for the first time in the USA on the part of the government substantial in the free-market economy one intervened. Therefore sometimes it is regarded as example of the attempt of a social transformation accomplished under national direction for the solution of a global crisis.

Trailers of economicliberalistic views point out gladly that that coincides temporally new Deal with the state socialism in the USSR and the transformation of the economy in National Socialist Germany, although that does not have to do new Deal with these totalitarian state and economic constitutions the smallest. It is in addition remarkable that nationally induced social security already in the eighties 19. Century an opponent of the social-democracy embittered by the German realm Reich Otto von Bismarck, introduced was that that came to meet new Deal unionized demands and also stands thereby in glaring contrast to the national socialism, and that new Deal questioned the capitalistic bases of economics and society, to that despite the interferences in market mechanisms contrary to the USSR, never.

Since that new Deal is coined/shaped the political arguments in the USA always also of the contrast between adjustment and Deregulierung of the economy. Times the pendulum deflects more to one, times more to the other side. Admits became in particular also the Deregulierungsmassnahmen of president Reagan (Reaganomics) in the eighties.

The success of the new Deal can be measured only with difficulty, since 1937 under Roosevelt themselves the public expenditures again were already led back and that was replaced new Deal starting from 1941 by the wartime economy.

See also

World economic crisis

Large depression

Articles in category "New Deal"

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