DEMOCRATS, REPUBLICANS, AND THE LEGACY OF THE NEW DEAL

" laissez-faire" Policy"

the federal gov should stay away from the private industries, economy, market… (classical liberalism)

The Great Depression

1929: f

• fall of GDP (13%)

• Industrial production

• farmers lost land

• banks failed = +++ unemployment

Herbert Hoover

elected in 1928: Conservative Republican

• Self-help & Welfare state

Franklin Delano Roosvelt

elected in 1933: reject conservatism Republican

The New Deal​

• an « economic social order »​

• an « economic declaration of rights »​

• an « economic declaration of rights »​

Regulation of Wall Street​

Securities and Exchange Commission ​

The environment​

Tennessee Valley Authority (1933)​

The welfare state​

• Works Progress Administration (1935)

• Social Security​​

WEALTH TAX ACT​

1935

Redefined fiscal system​

• Estate tax on inheritance of the rich​

• Increase income tax​

• Tax corporate profit​

Unionism

1935: Wagner Act​ (Right to collective bargaining​)

 Recovery by 1936

• GDP: up by +50% compared to 1932

• Annual growth rate: 10%

• Unemployed: divided by 2

• Agricultural income: x4

• +++ private profits

Liberalism

political and economic system = reinforced allegiance to the US political system