Compare and Contrast the First and Second New Deal.
The Great Depression, 1929-1939, is a period of unprecedented decline in economic
activity on a global scale. In America, by 1933, the Great Depression left approximately 15
million people unemployed and saw the collapse of hundreds of enterprises and banks. The
First and Second New Deals were a series of legislative measures instituted by President
Franklin D Roosevelt and his administration with the aim of inducing economic and social
recovery. The First New Deal was a set of measure intended to provide immediate relief and
sought to bring about expeditious economic recovery. The Second New Deal, on the other
hand, was directed towards gradually introducing long term solutions for America’s
problems. Both New Deals addressed the main problems that plagued America during this
period: problems in finance and the banking system, unemployment, and lack of relief.
Widespread unemployment was arguably one of the most significant consequences of
the Great Depression, and had to be tackled in order to improve economic conditions. In
terms of reducing unemployment, the Second New Deal was more effective than the First
New Deal. The unemployment rate was approximately 25% in 1933, during introduction of
the First New Deal. This figure reduced less than 3% till 1935. In contrast, the Second New
Deal saw unemployment rate gradually reduced, from 20% in 1935 to 9.5% in 1941. The
National Industry Recovery Act introduced in 1933 was an attempt, by Roosevelt’s
administration, to rapidly improve employment rates. The act encouraged companies to adopt
codes of fair competition which regulated unfair practices, such as price cutting, and also
suspended anti-trust laws. Additionally, the codes included provisions to protect labor rights,
establish minimum wages, allow participation in collective bargaining, and prevent
The Great Depression, 1929-1939, is a period of unprecedented decline in economic
activity on a global scale. In America, by 1933, the Great Depression left approximately 15
million people unemployed and saw the collapse of hundreds of enterprises and banks. The
First and Second New Deals were a series of legislative measures instituted by President
Franklin D Roosevelt and his administration with the aim of inducing economic and social
recovery. The First New Deal was a set of measure intended to provide immediate relief and
sought to bring about expeditious economic recovery. The Second New Deal, on the other
hand, was directed towards gradually introducing long term solutions for America’s
problems. Both New Deals addressed the main problems that plagued America during this
period: problems in finance and the banking system, unemployment, and lack of relief.
Widespread unemployment was arguably one of the most significant consequences of
the Great Depression, and had to be tackled in order to improve economic conditions. In
terms of reducing unemployment, the Second New Deal was more effective than the First
New Deal. The unemployment rate was approximately 25% in 1933, during introduction of
the First New Deal. This figure reduced less than 3% till 1935. In contrast, the Second New
Deal saw unemployment rate gradually reduced, from 20% in 1935 to 9.5% in 1941. The
National Industry Recovery Act introduced in 1933 was an attempt, by Roosevelt’s
administration, to rapidly improve employment rates. The act encouraged companies to adopt
codes of fair competition which regulated unfair practices, such as price cutting, and also
suspended anti-trust laws. Additionally, the codes included provisions to protect labor rights,
establish minimum wages, allow participation in collective bargaining, and prevent
