Although Franklin Roosevelt’s New Deal providedrelief to millions of Americans, the New Deal ultimately failedbecause it did not end the Great Depression. The New Deal was simplynot enough to cure the economy of its maladies.
The last big surprise founders mentioned is how much things changedas they grew. The biggest change was that you got to program evenless:
Your job description as technical founder/CEO is completely rewritten every 6-12 months. Less coding, more managing/planning/company building, hiring, cleaning up messes, and generally getting things in place for what needs to happen a few months from now.In particular, you now have to deal with employees, who often havedifferent motivations:
I knew the founder equation and had been focused on it since I knew I wanted to start a startup as a 19 year old. The employee equation is quite different so it took me a while to get it down.Fortunately, it can become a lot less stressful once you reachcruising altitude:
I'd say 75% of the stress is gone now from when we first started. Running a business is so much more enjoyable now. We're more confident. We're more patient. We fight less. We sleep more.I wish I could say it was this way for every startup that succeeded,but 75% is probably on the high side.
Admittedly, the New Deal was highly successful in achievingthe limited goal of providing immediate relief to millions of hungry, homeless,and jobless Americans. The Federal Emergency Relief Act, forexample, earmarked about half a billion dollars to distribute to stateson the verge of bankruptcy and directly to Americans who neededgovernment handouts the most. The Public Works Administration, WorksProgress Administration, Civilian Conservation Corps, and CivilWorks Administration also provided invaluable employment to millionsof young men during the depression. Most of Roosevelt’s new alphabetagencies, however, were just quick fixes to remedy the most visibleeffects of the Great Depression without doing anything to solvethe problems that had caused the economic collapse in the firstplace.
The New Deal was a “laboratory for economic learning” in the 1930s. Given the state of government economic knowledge in the 1930s it is not surprising that government employees struggled to engineer recovery through micro-economic intervention. Economic historians and right-wing commentators blame the New Deal for prolonging the Depression by deterring private investment through excessive regulation and raising prices at the expense of jobs. While it is true that Roosevelt had not secured recovery by the time of the dramatic recession in 1937–1938, it is also true that the spending afterwards did create new jobs. Government employment in the 1930s also compensated significantly for the failure to create new jobs in the private sector. Above all, it is difficult to see that a free-market solution could have been imposed without massive social and anti-democratic unrest. For all the bitterness of opposition to Roosevelt and heightened class tensions in the United States in the 1930s, the New Deal developed, especially through its welfare and jobs programs, enough social cohesion to allow its democratic institutions to survive a catastrophic economic downturn intact and to fight a world war successfully.
Source Analysis OCR: Was the New Deal a Success
TO WHAT EXTENT WAS THE NEW DEAL (1933 - 1937) A SUCCESS? The New Deal was an economic policy issued by F.D Roosevelt in response to the to the crash of the U.S stock market in the early 20th century and subsequent rising number of unemployed American's due. Despite its good intentions, the New Deal received numerous criticisms from writers and politicians after the first 100 days. However, it also gained much praise and was thought to be one of Roosevelt's finest policies by the forgotten man of America. In order to determine whether the New Deal was a success, both contemporary and modern sources need to be analyzed. The New Deal can be considered a success due to Roosevelt's ability to restore confidence in the American people. O'Callaghan states Roosevelt was seen by many as "God in this country"1 which is supported by Zinn who affirms that "Roosevelt [was] a hero to millions" in Source G. Source D shows the forgotten man receiving government attention and help which inevitably presented the everyday man of America with a sense of hope and unity. People trusted Roosevelt and therefore put their faith in the New Deal as it was offering jobs - although generally minor work - which allowed American families to continue with the idea established by their Founding Fathers of rugged individualism. It was this that resulted in Roosevelt's re-election, an election where he received the largest majority vote in American history, in 1936 as he was considered an "unassailable hero"2.
Source Analysis Was the New Deal a success
Some of the constraints of the New Deal conclude that it was too inconsistent, it appealed more to the ‘deserving poor’ and it failed to live up to standards. Although the initiative of corporate control was to assist in economic growth and provide more opportunity to the poor, it in fact became more harmful to the majority of labouring class. The National Recovery Administration became known to labourers as the ‘National Run Around’ as it provided little to no relief to the workers. In fact, it placed more aggression into an already heated battle of unionism. The NRA increased the power of large industries and injured small businesses.
The overall effectiveness of the New Deal can be debated. For the most part, its immediate effects caused an even greater recession in the economy. However, the initiatives and motives were in the right place and many of the original institutions and agencies still exist today. In general, many of the changes FDR made were for the benefit of the people. His concepts changed the role of government, not just in Washington but in most of the states. FDR introduced the use of university trained exports into most national agencies in order to increase productivity and the overall intelligence of the foundations. One of the more significant changes was the initiative to regulate large corporations and to hold them accountable to the consumer. From this spawned many key administrations, also known as the alphabet soup. Perhaps, one of the most important initiatives was the introduction of a new social rights system to replace the overall dependence of private charity. The Social Security Act of 1935 created America’s first national system of old age pension and a form of unemployment insurance. FDR also introduced the notion of minorities in government. He held more Catholic and Jewish members in his government than any previous administration, including the first female cabinet member, Francis Perkins. Although FDR instituted many radical and liberal transformations, it was known that he was very cautious of public opinion. This sensitivity to judgment and fear of radicalism hindered his overall effectiveness of liberalism and experimentalism which was a key ingredient for the success of the new liberal American economy.
TO WHAT EXTENT WAS THE NEW DEAL (1933 - 1937) A SUCCESS
The National Recovery Administration did not bring recovery. In part, its failure reflected the contradictions of the New Dealers’ analysis of economic failure. In some industries they wanted to check excessive competition that relentlessly fuelled the deflationary spiral: cutting wages and prices in a vain effort to undercut competitors. But their analysis of other industrial sectors was that large firms practiced the economics of scarcity, keeping prices artificially high. The codes of fair practice, drafted largely by trade associations, which held a monopoly of information about their industries, did little to protect consumers, increase wages, or increase purchasing power. To small businessmen the codes seemed to protect their larger rivals. For industries in which a few firms already controlled most of the market, there was little incentive to concede to labor, consumers, or potential new entrants. There were more than 500 codes, which merely increased resentment of bureaucracy and efforts at code enforcement. Concentration, as originally envisaged, on codes in a few central industries would have been better. But fundamentally, there was little in the NRA that would create new jobs. It probably checked the deflationary spiral but, if the hope was that public-works spending would engineer expansion, then PWA spending could not work quickly enough. Probably the biggest mistake was not to include government loans to business in the NRA, which might have financed expansion. When the industrial recovery legislation was knocked down in 1935 it had few friends: the only attempts to sustain it were in coal mining.