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Historians continue to debate the causes of this recession within a depression. Some believe the fear of increased taxes forced factory owners to curtail planned expansion; others blame the Federal Reserve for tightening the nation’s money supply. Roosevelt, however, blamed the downturn on his decision to significantly curtail federal government spending in job relief programs such as the WPA. Several of his closest advisors, including Harry Hopkins, Henry Wallace, and others, urged him to adopt the new economic theory espoused by British economic John Maynard Keynes, who argued that deficit spending was necessary in advanced capitalist economies in order to maintain employment and stimulate consumer spending. Convinced of the necessity of such an approach, Roosevelt asked Congress in the spring of 1938 for additional emergency relief spending. Congress immediately authorized $33 billion for PWA and WPA work projects. Although World War II would provide the final impetus for lasting economic recovery, Roosevelt’s willingness to adapt in 1938 avoided another disaster.

Roosevelt signed the last substantial piece of New Deal legislation in the summer of 1938. The Fair Labor Standards Act established a federal minimum wage—at the time, forty cents per hour—a maximum workweek of forty hours (with an opportunity for four additional hours of work at overtime wages), and prohibited child labor for those under age sixteen. Roosevelt was unaware that the war would soon dominate his legacy, but this proved to be his last major piece of economic legislation in a presidency that changed the fabric of the country forever.

In the final analysis

The legacy of the New Deal is in part seen in the vast increase in national power: The federal government accepted responsibility for the nation’s economic stability and prosperity. In retrospect, the majority of historians and economists judge it to have been a tremendous success. The New Deal not only established minimum standards for wages, working conditions, and overall welfare, it also allowed millions of Americans to hold onto their homes, farms, and savings. It laid the groundwork for an agenda of expanded federal government influence over the economy that continued through President Harry Truman’s “Fair Deal” in the 1950s and President Lyndon Johnson’s call for a “Great Society” in the 1960s. The New Deal state that embraced its responsibility for the citizens’ welfare and proved willing to use its power and resources to spread the nation’s prosperity lasted well into the 1980s, and many of its tenets persist today. Many would also agree that the postwar economic stability of the 1950s found its roots in the stabilizing influences introduced by social security, the job stability that union contracts provided, and federal housing mortgage programs introduced in the New Deal. The environment of the American West in particular, benefited from New Deal projects such as the Soil Conservation program.

Still, Roosevelt’s programs also had their critics. Following the conservative rise initiated by presidential candidate Barry Goldwater in 1964, and most often associated with the Ronald Reagan era of the 1980s, critics of the welfare state pointed to Roosevelt’s presidency as the start of a slippery slope towards entitlement and the destruction of the individualist spirit upon which the United States had presumably developed in the nineteenth and early twentieth centuries. Although the growth of the GDP between 1934 and 1940 approached an average of 7.5 percent—higher than in any other peacetime period in U.S. history, critics of the New Deal point out that unemployment still hovered around 15 percent in 1940. While the New Deal resulted in some environmental improvements, it also inaugurated a number of massive infrastructural projects, such as the Grand Coulee Dam on the Columbia River, that came with grave environmental consequences. And other shortcomings of the New Deal were obvious and deliberate at the time.

Questions & Answers

What were the direct causes of the civil war
Trinity Reply
How did slavery issues effect the war
Trinity
How were politics involved
Trinity
north wanted to unify the south
Maleek
south wanted independence
Maleek
freeing slaves was just a way to recruit black soldiers to fight for north
Maleek
Lincoln couldn't let the south separate from the union , agriculture was way to valuable
Maleek
progressive reforms under Theodore Roosevelt
Karpi Reply
what was the main thing suposed to happen when the tea party
Gavin Reply
Which plan resolved the issue of representation for the U.S. Constitution?
Nichole Reply
The plan which became known as the seventeenth amendmet.
WIlliam
amendmet because not an article of bill of rights.
WIlliam
Which of the primary features of grassroots Progressivism was the most essential to the continued growth
Ren Reply
The institution of a steady currency.
WIlliam
who invented the comedy movie without soun
Sami Reply
Comedy in film ad early as 1895 in film by Louis Lumier. Utilized slapstick.
Victor
Louis Lumier
WIlliam
Comedy in film as early as late 1895, there were no film adds because pictures could not be paired or arranged with words, quotes, or small phrases. Utilized slapstick.
WIlliam
which of the following is not one of the tasks women performed during the revolution?
Donna Reply
Women were gen not involved in politics or combat
Victor
Women were generally not involved in combat, but went inside the lines however and worked as nurses
WIlliam
Which country etablished the first colonies in the americas
Alex Reply
which part of the America's? what year?
Kyle
Jamestown = England. if I had to guess that's the one you are looking for
Kyle
Spain. area of new Mexico I think.
Christie
the first encounter with Americans in this te Indian was Christopher Columbus from spain bt he not establish a colony and the first colony was Britain in Jamestown I think
Bernard
Spain, first settlement was La Navidad est on Columbus' first voyage and which was destroyed by natives by 1493. on subsequent voyages of Columbus and others, Spain colonized Carribean islands such as Cuba.
Victor
Spain its colonies would become known as new-spain.
WIlliam
in what ways did westward expansion provide new opportunities for women and african americans?\
cavausier Reply
Women were involved in establishing communities. They did a lot of work in turning roughboomtowns into more civilized places that had all the benefits of such. The West was characterized by greater freedom for women e.g. women were first granted suffrage in Wyoming and other Western states.
Victor
Women were involved in establishing new communities within the States'. They helped men turn rough boomtown into a more modern version of civilization for the westerners moving the expansion forward. These communities later provided jobs for Afro-Americans after the civil war.
WIlliam
[.../e.g Suffrage for women was first was granted in The West in Wyoming and other Western states]
WIlliam
It was not a lot of work for them their forefathers all the work actually
WIlliam
What source did the Roman Catholic church have
robbie Reply
Please clarify: do you mean what sources do they made their authority on?
Victor
They established their authority in administering their mission in a last ditch effort to convert native Americans to christianity
WIlliam
yes, what sources? sources of domesticating the Native Americans.
WIlliam
part 1 and part 2 in 2 segments
WIlliam
impact of coming of Portuguese in kenya
Brian Reply
impact of coming of portuguese
Brian
impact of coming of portuguese
Brian
introduced new crops, disrupted local trade and communication, introduced Christianity but had limited success converting locals
Victor
The coming of the Portuguese impacted farming, farmbills caused non-levys in trade, miscommunication in the two governments and our United States Enviormental Protection Agency (USEPA).
WIlliam
What was the first problem that Franklin Roosevelt dealt with during his "First Hundred Days"?
Bryan Reply
The Great Depression
wy
worst cover up! they should feel dumb! they we're trapped in, on both sides of the East and West borders of the Islamic forces, Columbus was desperate and started voyage due to the events of his time!
Abdul
The Banking Crisis
Victor
a better word for Columbus is "determined" not "desperate."
Victor
Which of the following protests was directly related to federal policies, and thus had the biggest impact in creating a negative public perception of Hoover presidency
Steven Reply
the Bonus Army
Victor
The Bonus Army.
WIlliam
what mistakes did Britain mak the lost them the colonies
Victor Reply
tax without representation
JOE'S
they did not give the colinies any representation
Victor
they also imposed taxes ,such as the stamp Act, on those it is unwise to offend; lawyers, business men and other men of influence
Victor
No representation, and a series of acts.
WIlliam
the american revolution
Angelica Reply
what started the American revolution
Futuremfan
immediate cause: British tried to seize weapons stored by local militia which led to a confrontation
Victor
the British handling of the situation was quite inept and they allowed things to escalate out of control.
Victor

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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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