Title: Why did the New Deal fail? | by Link Daniel | Junto | Medium
Headings: Why did the New Deal fail?
Why did the New Deal fail?
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Content: In order to determine whether the New Deal failed or not, one needs to understand the causes of the Great Depression. The New Deal failed because Roosevelt misunderstood what caused the Great Depression. A doctor who recognizes the wrong symptoms cannot prescribe the right medicine to cure the disease of a patient. Similarly, Roosevelt prescribed the New Deal to cure the U.S. economy from the Great Depression. However Roosevelt’s medicine did not work because his administration failed to recognize what really caused the Great Depression and therefore prescribed the wrong medicine. Roosevelt assumed that the free market not the government caused the Great Depression. Roosevelt believed the Great Depression was partly caused by poor investments and stock manipulations by rich people. [ 6] Further, he blamed the Great Depression on bankers, speculators and journalists. Although the causes of the Great Depression are vast and complex, they can be boiled down to three major causes which explain why there was a banking crisis, why the stock market declined, why exports vanished, why trading partners were upset, why major industries collapsed, and why there was uncertainty on the administration’s policies. These three explanations of the causes contrast with Roosevelt’s assumption that the private, not the public sector caused the problem.