Financing of New Deal and Impacts of its Selected Programs

Bachelor thesis "Financing of New Deal and Impacts of its Selected Programs" focuses on the fiscal aspects of economic program New Deal of American President Franklin Delano Roosevelt in the 1930s. Theoretical part describes causes and consequences of the Great Depression (1929-1933) and economic situation in the USA during this period. In the next part it is followed by description of New Deal's nature and its individual measures, which were introduced as a "cure" for Depression. The thesis aims at an analysis of financing of the New Deal in the first chapter of practical part. It analyses fiscal policy and rising federal debt during the period from 1933 to 1939. Main source of funding is sought. The conclusion of this chapter is that emergency expenses associated with New Deal were financed mainly by deficit spending, which was reflected to rising federal debt and additional burden on the federal budget by interest from the debt. The second chapter of practical part examines selected programs of the New Deal, namely Agricultural Adjustment Act and National Industrial Recovery Act (both of them passed in 1933). This final chapter reveals their negative impact on the American economy. Negative impacts are compared to positive ones. Those negative economic and social impacts of chosen programs mentioned in this work are more significant than the positive ones.