Economic Analysis The Fiscal Policy And The Removal Of...

With the stabilization of the banking and investment institutions people’s confidence in their banking system grew. The long terms effects were no more runs on banks and banking, lending, and investment companies could begin working again. These New Deal Programs played a key part in the recovery taking place in the mid to late 1930s, but where the U.S saw dividends was in the devaluation of gold. The money supply grew at about 10% per year from 1933-1937 due to the gold that was coming into the U.S. from Europe following FDR’s devaluation policy (Romer 1992). The Gross National Product from the Bureau of Economic Analysis shows an increase of 33% between 1933-1937 (U.S. Bureau of Economic Analysis 1929-1942) This does demonstrate that†¦show more content†¦It also had a side of effect of creating surpluses that only World War II would alleviate. Another down side was that these programs benefited the large farms and the little guy struggled to compete eventua lly selling their land to the bigger farmers (Conkin 2011). The little guys would have to find work elsewhere in the U.S. which was another problem the New Deal Programs tackled with some success. Unemployment in 1933 was at an all time high and without help would probably have gotten worse. By June of 1933 the CCC had 235,000 men employed by the Forest Service and another 16,000 civilians to oversee the CCC were employed (Association July). Estimates of the total number of employed men reach 2.5 million for the CCC program and had the side benefit of teaching skills for future use (Bernstien n.d.). With establishment of FERA other work programs were born to employee the masses. The Civil Works Administration and the Public Works Administration put 4 million people to work. The WPA created in 1935 had over 3.4 million people employed by 1936, Harry Hopkins the head of WPA stated, â€Å"Give a man a job and you save both body and spirit.† (History, n.d.). While finding exact number for unemployment during the 1927-1936 is difficult but repeating one statical representation shows that umemployment did decrease from the 1933 high of 25% to fluctuate between 14-19 % thr ough the remainder of the 1930s(Census n.d.). After each unemployment works effort unemployment