Roosevelt: New Deal or Austerity (1933)
by Anonymous
Facing 25% unemployment, FDR chose massive government spending and intervention (the New Deal) over the austerity approach that Hoover had tried. The decision redefined the role of American government.
New Deal (Government Intervention)
1933
year
Public works, banking reform, social safety net
approach
Unprecedented federal spending
scale
Chosen — reduced unemployment, created Social Security, FDIC
outcome
Austerity (Hoover's Approach)
1929-1933
year
Balance budget, let markets self-correct
approach
Minimal government intervention
scale
Failed — Depression deepened under Hoover
outcome
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