How did the New Deal help the U.S. economy recover following the Great Depression?
1 Answer
According to Keynesians, government intervention is necessary to regulate the economy, this is what the New Deal brought.
Explanation:
According to the proponents of government intervention in the economy, the ND helped the economy to recover thanks to the massive public investments that created thousands of jobs.
The regulations implemented by the NRA and AAA, both the acts and the admnistrations are also said to have played a role in ending the crisis. The introduction of the Social Security in 1935 is also praised for having provided relief to the poor.
The idea that the New Deal helped America out of the 1929 crisis is refuted by many economists and historians, especially those who support liberal economics. Scholars like Milton Friedman or Friedrich Hayek or politicians such as Ron Paul therefore denied the effiency of the New Deal, the development of consumer's society after WWII is the actual reason why the crisis ended according to these people.
