The New Deal: The Depression Years 1933-1940
Introduction
The big depression at United States is said to have started at the time of the market stock break down in 1929. The crash was caused by small recession on unemployment which is said to have increased after the break down. The Roosevelt started the new contract where he ended the big depression.
The author has analyze this book with a short account on economic effects of the big depression, detailing troubles which maintain consumer demand adequately to match the overpowering productive capacity of the American economy. The gap has expanded and the factories are forced to shut down. The American people (businessmen) had an aim of helping the Europeans in their economy to pay the debt of the 1st world war. The international monetary and national deflation policies worsen the American economy. The author has looked at the new deal response to the dark situation in some areas like the labor relation, industrial policies, welfare, agricultural and coalitional politics.
The author has emphasized on the constraints on the Franklin Roosevelt which he faced as he attempted in this systematic reform. The Roosevelt had to insist on the recovery on the reform in the dark situations days between the years 1932 – 1933. The citizens also needed an immediate help that was not in few months. After the economy stabilized he assessed a realistically desire in economic social justice and restructuring beside increasing congressional conservatism, power on localism in the management of new deal reform and the values of the most operational and middle group Americans, in the American doctrine individualism and laissez faire free enterprise.
In sketch, the author seems to be interested in countering critique from the left concerning Roosevelt the president and the new contract. In this, the most of the historians has argued on the issue of corporate and government leadership invented new contract in saving inhibit and capitalism the native extremism of the American people confronted with the overpowering catastrophe of the big depression.
This group high jacked preserved and revolution capitalism. The president saved the capitalism but he did this beside the nail and tooth efforts of almost all capitalist in America, who refused to appreciate the president efforts. Roosevelt should have embraced the government spending using the Keynesianism theory on a systematic basis earlier in 1930s. The use Keynesian policy would raise the demand and wages.
The economic factor appeared justified, there was an outbreak in 1939 and unemployment was around 9.9 percent to 24.9 percent in 1933. The new contract ended and the unemployment rate was at 14.3 percent in 1937. The main aim of the president was to put citizens on work because the new contract affected unemployment and people were sustained by the government. The unemployment reduced between the years 1939 and 1941 and increased the rate of employment with 12 percent. The creation of employment secured the new contract though a holding operation in the wars having real transforming result (Badger A.J., 2004).
The flow of the book is largely logical with the ideas of the author flowing in a concise manner. The author starts with a description of the events that informed the downturn in economic activity. The book then unfolds with the author limiting himself to the 1933 -1940 time period. Of particular importance in the book are the author’s feelings in regard to the achievements as well as motivations of Roosevelt at the time the events unfolded. In regard to the footnotes and the bibliography, the author’s inclusion of the same in the book help the reader to make quick references in such a way that they can easily refer and follow up on the author’s ideas as they progress with the reading.
References
Badger A.J. (2004). The new contract: the great depression year, 1933 – 1940 – Farrar, stratus and Giroux – U.S
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