The New Deal can be seen as a fiscal policy. Fiscal policy refers to government actions relating to taxation and spending in order to influence the economy. The New Deal was a set of economic policies and programs implemented by the U.S. government under President Franklin D. Roosevelt during the Great Depression in the 1930s.
Several actions from the New Deal support the conclusion that it was a fiscal policy. First and foremost, the New Deal involved significant government spending on public works projects such as infrastructure development, building schools, roads, and dams. This spending aimed to create jobs and stimulate economic activity. Additionally, the New Deal implemented various relief programs, such as the Works Progress Administration (WPA) and Civilian Conservation Corps (CCC), which provided direct employment to millions of Americans.
Furthermore, the New Deal introduced extensive regulations and reforms in the financial system and labor market. These included the establishment of the Securities and Exchange Commission (SEC) to regulate the stock market and protect investors, as well as the National Labor Relations Act (NLRA) to protect workers' rights to organize and collectively bargain. These regulatory measures fall under the purview of fiscal policy, as they aim to shape the economic environment through government intervention.
Overall, the New Deal's emphasis on government spending, relief programs, and regulatory measures align it with the characteristics of fiscal policy, making it a key example of this economic approach.
Is the New Deal a Fiscal or Monetary Policy? What actions from this policy support your conclusion?
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shorten answer to 5 sentences
The New Deal implemented by President Franklin D. Roosevelt during the Great Depression can be characterized as a fiscal policy. This is supported by actions such as significant government spending on public works programs like the Civilian Conservation Corps and the Works Progress Administration. Changes in tax policies were also implemented, such as the Revenue Act of 1935, which increased income taxes. Additionally, the establishment of Social Security demonstrated a significant fiscal commitment by the government. Overall, the emphasis on government spending and tax policies aligns the New Deal with the characteristics of fiscal policy.
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