Title: The New Deal | Fresh Essays Samples
Headings: The New Deal
The New Deal
The New Deal

Content: Doe 2
The programs spelt out under the New Deal led to increased spending by the government and unbalanced budgets. While American citizens had little expectations before the New Deal, many of them had bigger expectations from the federal government after the New Deal. According to Hardman, critics of the New Deal argue that “deficit and government spending absorbed the credit that was available, and this made the recovery of the private sector difficult” (Hardman). A number of measures were instituted under the New Deal and they included the Emergency Banking Act, the Economy Act, the Federal Emergency Relief Act, the Agricultural Adjustment Act, the Tennessee Valley Authority Act and many other programs. In terms of fiscal policy, Bordo et al. observe that during the New Deal period, a regime shift took place and it increased the federal fiscal share by about 9 % points (25). Data suggests that programs under the New Deal led to an increase in fiscal centralization as well as setting in motion processes for further centralization. With these programs, the political setting was such that local and state officials demanded and go active roles in their administration, with the central government setting up general guidelines and providing much of the funds in form of matching grants. As such, the political economy of these New Deal programs took the shape of a cooperative enterprise between various government levels, a factor that is still evident in today’s system of governance. Also, this pattern of intergovernmental relations created by the New Deal is responsible for the struggles that exist between national and state governments, as well as between Congress and the President over the control of the programs.