Compare and Contrast the First and Second New Deal.
The Great Depression, 1929-1939, is a period of unprecedented decline in economic activity on a global scale. In America, by 1933, the Great Depression left approximately 15 million people unemployed and saw the collapse of hundreds of enterprises and banks. The First and Second New Deals were a series of legislative measures instituted by President Franklin D Roosevelt and his administration with the aim of inducing economic and social recovery. The First New Deal was a set of measure intended to provide immediate relief and sought to bring about expeditious economic recovery. The Second New Deal, on the other hand, was directed towards gradually introducing long term solutions for America’s problems. Both New Deals addressed the main problems that plagued America during this period: problems in finance and the banking system, unemployment, and lack of relief.
Widespread unemployment was arguably one of the most significant consequences of the Great Depression, and had to be tackled in order to improve economic conditions. In terms of reducing unemployment, the Second New Deal was more effective than the First New Deal. The unemployment rate was approximately 25% in 1933, during introduction of the First New Deal. This figure reduced less than 3% till 1935. In contrast, the Second New Deal saw unemployment rate gradually reduced, from 20% in 1935 to 9.5% in 1941. The National Industry Recovery Act introduced in 1933 was an attempt, by Roosevelt’s administration, to rapidly improve employment rates. The act encouraged companies to adopt codes of fair competition which regulated unfair practices, such as price cutting, and also suspended anti-trust laws. Additionally, the codes included provisions to protect labor rights, establish minimum wages, allow participation in collective bargaining, and prevent
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