칼럼 Frank D. Roosevelt's New Deal for New Age

[하늘을나는마법사]

     After World War Ⅰ, American economy suffered from Great Depression which struck the entire world damaging major industries overall. Economical investment was discouraged by being reduced size of consumption. It caused reduction of employment, also. At last, it ended in total disaster of economy like a virulent chain reaction which no part in economy can do its performance due to lack of other parts' potentiality.

     Frank D. Roosevelt, the 32nd president of the United States, came in presidency while American economy was in untouchable situation. FDR introduced the policy which had never been before. It was called the 'New Deal'. The New Deal policy was based on idea which was a taboo till then ; the debt of government. The money to support the New Deal policy was made by the government having responsibility for the inadeptness. First time in American history, US government managed deficit financing.

     The money flowed in American economy activated the production and consumption gradually. Public project such as enlarging highway, building dams, restoring historical places, and etc. motivated the enterprise to produce the materials that make the production go on. The project also hired many un-employees for the project itself, which stabilized the social depression.

     At the same time the New Deal having gone on, anti-federalists continually warned the excessive extension of central government. The New Deal policies were being led by strong power of federal authorities. America had had long history of independent relationship between state and federal government, however. Since the New Deal increased the participation of central government in community, some people thought FDR's authorities made to proceed the projects were acting over the boundary of the Constitution which provides the own right of the State. The New Deal policy was constantly criticized by the point of view above, and that became one of the main reason why the 2nd New Deal was not as strict and big as the former New Deal project.

     The New Deal has been judged in many contrary ways. Some people think it excessively expanded the authority of the president and central government. But most people in that era thought the New Deal positively reformed the situation of great inflation and regained vitality in economy - people replied their appreciation to FDR by electing him 4 times. The New Deal successively proved itself that the government control is a major factor of stable economy.