The New Deal
In order to combat the economic devastation caused by the Great Depression, Franklin Roosevelt had Congress pass a series of bills known as the New Deal. Its aim was to put a stop to the economic downturn and help America recover from years of financial deprivation.
Roosevelt based the ideals of the New Deal on three foundations. First,"Relief" was the idea that those Americans in need would need immediate support. Second, "Reform" was the idea that American business centers needed to be reformed to ensure the tragedy would not happen again. Third, "Recovery" was the idea that the New Deal would help the economy recover so that it would be stronger than before the Great Depression.
The New Deal closed the banks, created government programs that would protect the banks should they fail in the future, and took the United States off the gold standard. This created a more elastic economy that allowed financial centers to bounce back if the dollar continued to fail. The New Deal also called for the federal government to spend billions of dollars putting America to work. Roosevelt knew that Americans were a proud people. While some might take charity, the president knew all of them would take honest work. The mobilized workers built dams, railroads, power stations, highways, canals, and levies against floodplains. It was a new face on an old country. New buildings sprung up everywhere. The workers built Hoover Dam, one of the largest dams in the world, in a little less than five years. A network of interstate highways spread from coast to coast and border to border. Roosevelt's New Deal gave Americans heart again after having lost so much during the Great Depression.
The plan was not without its opponents, however. Critics screamed that the New Deal was bald-faced communism while still others called it fascism. Roosevelt denied these opponents' claims directly. In one of his Fireside Chats, he said that though some might try to scare Americans by calling the New Deal communism or fascism, it was the "right" thing to do. He said Americans were in need, and now they were working to build a better country. Opponents also pointed out that unemployment had not returned to its lowest point before the Depression. They complained that Roosevelt could not balance the budget, and the United States was slipping further into debt. Roosevelt said that the increased spending was necessary to stabilize the nation. Most Americans sided with Roosevelt, as he continued to win elections.
Eventually, the United States entered World War II, and unemployment virtually disappeared. Factory production skyrocketed, and the United States government spent even more money by purchasing weapons, equipment, and ammunition from American companies. The federal government spent more money during World War II than it ever did during the years of the New Deal. This catapulted the American economy into superpower status as early as 1946, a status the country still enjoys today.
5
Which quote from the article supports the New Deal was a good financial idea?
A.
"The New Deal also called for the federal government to spend billions of dollars putting America to work."
B.
"Opponents also pointed out that unemployment had not returned to its lowest point before the Depression."
C.
"Critics screamed that the New Deal was bald-faced communism while still others called it fascism."
D.
"Roosevelt's New Deal gave Americans heart again after having lost so much during the Great Depression."