How did the New Deal attempt to address the problems of the depression
The New Deal was a massive governmental overhaul of the past ideas of the American political system which attempted three central aims, Relief, Recovery, and Reform; largely known as the “Three R’s”.
Relief was addressed through the creation of employment schemes, unemployment benefit, and a wide-scale hiring of employees into a federal system in order to create more employment within society. Recovery was implemented again through the creation of federal jobs and also in the government’s attempts to repair and resurrect a number of banks within the country.
Around $500 million (over $9 billion today) was spent on bailing out these banks in an attempt to aid these banks in recovering and improving the American economy. The final issue, Reform, was approached through the passing of a large number of laws centered on regulating the banking system and creating a safer, less volatile, and more responsible financial sector.
These reforms helped in the struggles of the large majority of poorer and lower class Americans but many upper class members of society protested the amount of intervention the government was performing within the economy. The New Deal formally ended with the outbreak of WWII, which helped in the resotration of the American economy more than anything.