Who remained reach New Deal assistance Why politics shaped limits reform ability constituents demand assistance federal government s response demands

Length:  4 pages (1381 words) | Sources:  2  | Subject:  Economics - Banking | Type: Essay | Paper: #56421555 | Author:  

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A fifth reason why these constituents remained mostly outside the program is that the New Deal discouraged private investment needed to spur the recovery of the American economy in general leaving little money for those groups. The New Deal consisted of many different efforts to end the Great Depression and reform the American economy. The vast majority of them failed for several reasons but the most preeminent reason is commonly seen in the fact that private investment in general had been hampered by the New Deal program. The Roosevelt administration's policies relied heavily on private investment. Yet its rhetoric precluded the private confidence to invest (see Higgs, R., Regime Uncertainty: Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War, p. 561, 572). There had been a bewildering, incoherent mass of new expenditures, taxes, subsidies, regulations and direct government participation in productive activities that resulted in much confusion, fear, uncertainty and hostility among businessmen and investors that private investment, and hence overall private economic activity, never recovered enough to restore the high levels of production and employment in the pre-depression years (Higgs, R. The Mythology of Roosevelt and the New Deal, p. 1, 2.) Ignoring vehement critique of business groups such as the U.S. Chamber of Commerce and the National Association of Manufacturers, the Roosevelt administration launched a bunch of policy changes that that abruptly and dramatically altered the institutional framework in which private business decisions were made. In 1935 the Roosevelt administration supported the Social Security Act, the National Labor Relations Act, the Banking Act, and the Public Utilities Holding Company Act as well as numerous other laws, including soak-the-rich taxes, opposed by most business groups (Higgs, R., Regime Uncertainty: Why the Great Depression Lasted So Long and Why Prosperity Resumed after the War, p. 561, 572). Various tax programs introduced in 1935, 1936, and 1937, such as the so called "Wealth Tax" of 1935 ultimately effected in a raise of the corporate income taxes (see Higgs, R. ibid, p. 561, 572f.). Some economic historians are of the opinion that the tax reform of 1935…[continue]



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APA Citation

"Who Remained Reach New Deal Assistance Why Politics Shaped Limits Reform Ability Constituents Demand Assistance Federal Government S Response Demands" (2011, August 14) Retrieved December 22, 2014, from http://www.paperdue.com/essay/who-remained-reach-new-deal-assistance-why-51810

MLA Citation

"Who Remained Reach New Deal Assistance Why Politics Shaped Limits Reform Ability Constituents Demand Assistance Federal Government S Response Demands" 14 August 2011. Web.22 December. 2014. <http://www.paperdue.com/essay/who-remained-reach-new-deal-assistance-why-51810>

CHICAGO Citation

"Who Remained Reach New Deal Assistance Why Politics Shaped Limits Reform Ability Constituents Demand Assistance Federal Government S Response Demands", 14 August 2011, Accessed.22 December. 2014, http://www.paperdue.com/essay/who-remained-reach-new-deal-assistance-why-51810