Title: The Economic Effects of the New Deal
Headings: The Economic Effects of the New Deal
The Economic Effects of the New Deal
Key Takeaways
The First 100 Days
The Second New Deal
A Weak Recovery
Fiscal Stimulus
The Bottom Line

Content: By 1933, gross domestic product (GDP) per capita in the U.S. had fallen 47%, and the average unemployment rate had risen from 3.2% to 25%. 1 ﻿ 2 ﻿
Amid this economic contraction, Franklin Roosevelt campaigned for the U.S. presidency on the promise of a “ new deal ” for the American people. He won the 1932 election by a landslide and began a series of reforms that, while reducing income inequality failed to pull the economy out of its depressed state—it would take the Second World War for that to finally happen. Key Takeaways
The New Deal of the 1930s helped revitalize the U.S. economy following the Great Depression. Economists often credit the New Deal with shortening the length and depth of the depression, while others question its impact on an otherwise weak recovery. Ushered in by Franklin D. Roosevelt, the New Deal was an enormous federally-funded series of infrastructure and improvement projects across America, creating jobs for workers and profits for businesses. Today, the legacy of the New Deal remains with programs like Social Security still in place. The First 100 Days
Upon taking office in 1933, Roosevelt went straight to work on implementing reforms he hoped would stabilize the economy and provide jobs and financial relief to the American people. In his first 100 days in office, he put into effect many major laws, including the Glass-Steagall Act and the Homeowners Loan Act. 3 ﻿ He also implemented a number of job creation schemes like the Federal Emergency Relief Act (FERA) and the Civilian Conservation Corps (CCC).