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The domestic programs consisting of 3Rs (Relief, Recovery and Reform) implemented during president Franklin D. Roosevelt's first term in the office (1933-39) are commonly called New Deal. It was in response of the great depression.
New deal was a political masterstroke and ended up in political realignment. Democratic party came to power (i.e. its candidate became president) 7 out of 9 times between 1933 and 1969. They won the support of white South and also the labor unions. Hence in political regard, New deal was a success.
In economic terms, New deal produced some results but they can not be called a success. For example -
1. Unemployment rate in 1933 was about 25%, which improved to 17% by 1939. [workers who were counted as unemployed]
2. During the same time, GDP grew from $55 billion to $85 billion.
3. Private investment from industry grew from $2 billion to $10 billion
Though there were some improvements, but these can not be called a great success as these indicators were in better position before the great depression.
World war II did better good for US economy than New Deal. In terms of GDP growth and employment. But New deal set the wheel of economic activity rolling. Hence it should be terms as success. (even though not a very great one)
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Oct 25th, 2015
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