Did the New Deal weaken or strengthen capitalism in the USA? (10) Flashcards
What did the New Deal abandon?
Abandoned some of the practices of pure uncontrolled capitalism.
What did critics accuse the government of?
- Destroying capitalism and democracy.
- They said it undermined the underlying principles of capitalist economic policies
What did these critics believe were the underlying principles of capitalism? (3)
- Minimal taxation
- Weak trade unions
- Free enterprise
How did the New Deal challenge the capitalist idea of government intervention?
It contradicted ideas about free-market capitalism with no government controls or interference.
How did the New Deal challenge the capitalist idea that the state should not interfere with the workings of a capitalist economy
Large scale government spending to provide employment.
How did the New Deal/TVA see as a threat to enterprise?
Because they competed with private power companies to generate and sell electricity to local authorities.
How did the New Deal challenge the capitalist idea of individualism?
Business leaders accused the government of interfering in areas beyond its control, by setting minimum wages, maximum working hours and recognizing trade unions. They said it was interfering in business practice.
How did the New Deal challenge the capitalist idea that the government had no role to play in providing for the unemployed, the old or the sick?
The Social Security Act
Why did many historians believe the New Deal strengthened capitalism?
The New Deal attempted to make capitalism work by adopting some of the methods associated with socialism, such as support for welfare and jobs.
What did historians believe the success of the New Deal gave the USA?
Economic stability that it needed to maintain democracy at a time when many totalitarian regimes were occurring.
How was the unemployment problem really solved?
Outbreak of WW2
Why did the US economy start booming during WW2?(2)
- It became the main source of arms and ammunition for the Allied armies, providing a solid base for the Allied victory in the war.
- It also brought back full employment and better wages for workers who were in great demand
Roosevelt was re-elected again in 1940 and 1944, the only US president to have served more than __ terms in office.
Two
Despite its shortcomings what was the New Deal responsible for?
The emergence of the USA as one of the two superpowers after WW2.
