New Deal AnalysisEssay Preview: New Deal AnalysisReport this essayThe new deal was successful in reforming many of the problems that led to the great depression. One of the actions that helped the depression to grow was the crash of the stock market. The attitude of the 1920s was one of market speculation. People bought stock, which increased its value, making more people invest in it. This led to artificially high stock prices, and when the bubble burst, the whole market collapsed. One of the reasons the market crash affected the economy was margin buying, where stock is bought on credit. This made many lose the borrowed money and unable to pay it back. Banks who had loaned the money to the investors lost the money that was to be paid
back. This led to the failure of many banks. The New Deal reformed this by making margin buying stricter, so that banks and other institutions that offer loans would be protected. Also, due to the bank failure, banks became insured by the FDIC so that the people who had money in banks were guaranteed that it would stay safe. The government did this so the people would regain their trust in the bank system, and put more money in the bank. Other organizations were also formed to reform various aspects of the country. These included the so-called alphabet reform agencies, named for all of their initials. The Securities and exchange commission was formed to regulate the stock market and enforce the laws that were passed. This was done to prevent another stock market crash. Unions were encouraged during the great depression because they reformed the way labor worked. They put more power into the hands of workers, and made sure that all workers were treated fairly.
With respect to relief, the government was successful in providing many of the people hardest hit with help. This help came in the form of the Civilian Conservation Corps, the Public Works Administration, and many other organizations. The CCC provided young men with the opportunity to work. The work was usually a public works conservation project such as planting trees, however, they also built infrastructure. The PWA contracted out workers to private firms to built public works such as roads, bridges, and schools. All of these different organizations were created to help improve industrial spending and increase jobs. Most of these organizations were not completely successful to their purpose, but were highly successful in providing immediate relief.
In November 2006, the federal government’s own data set was released, which found that 40% of all workers surveyed were able to return to work. Additionally, a National Education Association report reveals that the majority of those employed outside the United States can find an important job. As a result, many of those who returned can use their full potential to create better lives for themselves and others. However, the vast majority of the jobs that return were in this area of the country, and it may take other, more profitable sectors to fill the void. For example, if one company works to develop new factories and an additional company is willing to work with the new workers, the economy is going to start to pick up.
We should take one good step back and look at how we are building an economy and how we are bringing economic change to our society. We need to go to the root of people’s frustration, not to the other end. And that is how the New Economics movement will help. From a political perspective, this would be the first step that the People will be taking. From an economic perspective, this would be the first step that the People will be taking.
Over the years, the National Economic Mobility and Public Service Policy Coalition has grown at the urging of many people who know they need to change the direction of the economy. Today, these new policies will continue to help create millions of jobs—which means more economic opportunity for the citizens of this nation, and more job creation for consumers. With the support of our partners at the Community Prosperity Institute, New Economics Foundation, the Urban Development Council and many others, we are working to build the economic engine that we know is needed to succeed to create an economy that works. At the same time, we recognize that more than any other movement we have seen, we need an economy where people do the work, not businesses that rely on government to do the work. And that this economy is built on a shared shared labor ethic.
Over the last 10 years, New Economics has helped create more than 1.5 million new jobs in over 1,500 industries, many of them American. We are also in the forefront of a New Era of American American manufacturing, thanks to our continued involvement with the American Economic Association Foundation and other key labor groups. We have contributed over $1.4 billion for local and state organizations which make and sell goods and services. We have produced jobs in over 125 manufacturing and retail industries, creating 750,000 new jobs in Illinois and more than $1.4 billion in our state and local government coffers.
As leader of our new leadership, I believe that any movement, and any program you have come together with should serve the people of this country to the best of our ability and serve their future. By coming together we are fighting to save our communities. We are winning. We are winning with the people. If you want to make that happen, we hope you come on board.
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