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SOCIAL AND ECONOMIC REFORMS – NEW DEAL

Expert discussion with the creative academic staff of the department.

At its meeting, on March 21, 2016, the Department of Economics and Economy commemorated the 83rd anniversary of announcing the “New Deal” programme. The new programme of social and economic reforms was announced on March 4, 1933, by US president Franklin Delano Roosevelt. The aim was to halt the economic decline through state interventions, restore public confidence in the democratic state system after the economic crisis and help 14 million unemployed people and their families. Congress passed a series of laws to boost the economic growth. In the coming period, after year 1935, a second wave of reforms followed, but the Supreme Court, where the Conservatives had the upper hand, ruled on the unconstitutionality of some of the Roosevelt's acts. At the beginning of 1937 there was a strong Conservative critique of the programme, which called it “creeping socialism” mainly for unwanted state intervention in the economy. The very period of reforms ended in 1938, when Republicans strengthened their position in the congressional elections. Roosevelt's programme stabilized the situation in the country, improved the living conditions of the poor, but on the other hand, the executive power was greatly strengthened, there was an increase in federal institutions and especially bureaucracy.

Updated by: Martina Kručay, 23.06.2020