Essay Prompt #1: Between the 1930s and 1940s, the United States witnessed the consolidation of the New Deal Order, that is, the political and economic system that presumed the necessity of government regulations, government promotion of public sector benefits, and a graduated income tax in order to curb the power of big business and to ensure the livelihood and purchasing power of American workers. By the 1970s and 1980s, the nation experienced the ascendance of political forces that rejected the New Deal Order in favor of a free market system, which aimed to promote free trade by liberating American business from government regulation and from the social safety net that had been built on the foundations of the New Deal.

QUESTION

Essay Prompt #1: Between the 1930s and 1940s, the United States witnessed the consolidation of the New Deal Order, that is, the political and economic system that presumed the necessity of government regulations, government promotion of public sector benefits, and a graduated income tax in order to curb the power of big business and to ensure the livelihood and purchasing power of American workers. By the 1970s and 1980s, the nation experienced the ascendance of political forces that rejected the New Deal Order in favor of a free market system, which aimed to promote free trade by liberating American business from government regulation and from the social safety net that had been built on the foundations of the New Deal.

Assess the historical significance of this shift. How and why did this shift take place, and what has been its impact on American society? Has the shift toward a free market system made American society more free and democratic? What does it mean for the future of the nation and its people?

Directions: Use the assigned readings from Weeks 6 through 9, along with class screencast lectures, primary sources, and discussions, to write a 3-5 page essay in response to one of the prompts below. Your paper should be well organized to include a brief introduction, body of your essay, and brief conclusion. You should include a clear statement of your thesis (main argument) and sufficient evidence to support your claim. Do not simply summarize readings or lectures. If you quote from the readings, be sure to place the text’s author and page number in parenthesis after the quote. You will be evaluated based on your ability to follow these directions as well as your success in engaging the debates, themes, and issues raised in class readings and discussions. In addition, the clarity of your argument, compelling interpretation, creativity in style, and presentation will figure in your grade. Type your essay in 12-point font (double-spaced), use one-inch margins, and note your name, the course, date, and your essay title at the top of your essay. Please also indicate at the top of your essay which prompt you are responding to.

For Zinn resource, use chapters 16-21
For America is in the Heart, sprinkle in a couple quotes and material for support

ANSWER

The Shift from the New Deal Order to a Free Market System: Historical Significance and Impact on American Society

Introduction

The consolidation of the New Deal Order in the United States during the 1930s and 1940s established a political and economic system that aimed to curb the power of big business, ensure the livelihood of American workers, and promote government regulation and public sector benefits (Hayes, 2021). However, by the 1970s and 1980s, a significant shift occurred as political forces rejected the New Deal Order in favor of a free market system. This essay assesses the historical significance of this shift, explores its causes, analyzes its impact on American society, evaluates its effect on freedom and democracy, and considers its implications for the nation’s future.

Thesis Statement

The shift from the New Deal Order to a free market system marked a pivotal moment in American history, leading to fundamental changes in government’s role, economic policies, and societal structures. While proponents argued that a free market system would promote freedom and democracy, the reality reveals a more complex and nuanced impact on American society.

Historical Context: Consolidation of the New Deal Order

During the 1930s and 1940s, the United States witnessed the consolidation of the New Deal Order, which involved government regulations to curb the power of big business, the promotion of public sector benefits, and the implementation of a graduated income tax. These measures aimed to protect American workers and ensure their purchasing power.

The Emergence of Political Forces Rejecting the New Deal Order

By the 1970s and 1980s, several factors contributed to the rejection of the New Deal Order. Economic challenges, such as stagflation and global economic changes, undermined the effectiveness of government interventions (Travis et al., 2014). Ideological and political motivations also played a role, as some advocated for limited government intervention and a more market-oriented approach. Influential neoliberal thinkers promoted the idea of a free market system as a means to enhance economic growth and individual freedom.

Impact on American Society

The shift to a free market system brought significant changes to American society. Dismantling government regulations and reducing welfare programs aimed to create a business-friendly environment (National Academies Press (US), 2017). However, this resulted in increasing income inequality and the concentration of wealth, which disproportionately affected marginalized communities. Furthermore, the erosion of worker rights and the weakening of labor unions diminished the bargaining power of workers and contributed to the decline of organized labor.

Assessment of Freedom and Democracy in a Free Market System

Advocates of the free market system argue that it promotes economic freedom for businesses and entrepreneurs, which can lead to innovation and growth. However, the limited freedom and democratic participation for workers and marginalized groups raise concerns. The growing influence of money in politics further undermines the democratic process, as it favors the interests of the wealthy and corporations, often at the expense of the majority.

Implications for the Future of the Nation and Its People

The shift to a free market system has resulted in an unequal distribution of resources and opportunities. This poses challenges for social mobility, access to education, and healthcare. To address these concerns, a balanced approach is necessary to address economic growth while safeguarding social welfare and promoting equal opportunities for all.

Conclusion

The shift from the New Deal Order to a free market system marked a significant turning point in American history. While proponents argued that it would promote freedom and democracy, the reality reveals a more nuanced impact on American society. The dismantling of government regulations, increasing income inequality, erosion of worker rights, and the influence of money in politics have raised concerns about the fairness and inclusivity of the free market system. Moving forward, it is crucial to strike a balance that addresses economic concerns while safeguarding social welfare, promoting equality, and ensuring democratic participation for all Americans.

References

Hayes, A. (2021). The new Deal: Meaning, overview, history. Investopedia. https://www.investopedia.com/terms/n/new-deal.asp 

National Academies Press (US). (2017, January 11). The root causes of health inequity. Communities in Action – NCBI Bookshelf. https://www.ncbi.nlm.nih.gov/books/NBK425845/ 

Travis, J., Western, B., & Redburn, F. S. (2014). The growth of incarceration in the United States. In National Academies Press eBooks. https://doi.org/10.17226/18613