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After steady economic recovery through 1936, what was the outcome of president roosevelt s post-election retreat from deficit spending?

User Yazazzello
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A downturn in national income and production that reversed many of the gains brought by the New Deal

How successful was President Roosevelt's new deal in dealing with America's economic problems in the 1930s?

The Great Depression was partially ended by the New Deal. What is overlooked in that, though, is the fact that it significantly lessened the Great Depression's harsh consequences while preventing its total eradication. There was no federal assistance for people until 1933. There had been cases of starvation. A 25% unemployment rate was attained. Large populations were residing in shacks and shantytowns without access to heat, electricity, or running water. Some folks made their autos their home. FDR established the WPA and the Federal Emergency Relief Administration. For those who were actually in need, food and money were given.

The WPA developed vital infrastructure projects in this country, including as dams, electricity lines, schools, municipal halls, and highways, and gave work to hundreds of thousands of jobless men. Another initiative, the CCC, hired tens of thousands of young people from urban areas who were unemployed in national parks and national forests. The CCC built a large number of roads and other park improvements in the 1930s.

However, the effects of the Great Depression persisted. There were motives behind that. As it was gradually disappearing, FDR decided to concentrate on budget balance in 1937 by reducing financing for certain of these initiatives. Some of the consequences of the Depression resurfaced, and unemployment spiked. However, his government made a U-turn and started increasing the deficit. This made it possible for the nation to gradually recover. But it is clear that the Great Depression persisted at least until 1940. By 1940, many Americans realized that the war that had broken out in Europe may include them in some way. As a result, we spent a lot of money on the military or on defense. This boost to the economy finally ended the Great Depression once and for all.

Thank you,

Eddie

User Steve Brush
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