To what extent did the New Deal strengthen or weaken the USA's capitalism?
I believe that the New Deal did strengthen the USA's capitalistm.
After the Wall Street incident from 1929 american economy was rapidly collapsing. Unemployment reached 27% of professionally active citizens. The government, with Herbert Hoover as president, started working on appropriate countermeasures but voters decided that they failed and so in 1933 they chose Franklin Delano Rooseveltto be their leader.
He devised a plan, called theNew Deal, which was supposed to ease the situation by envigorating foreign trade, supporting workers and hiring them to work on governemtal constructions. Druing that time in US, 8.5 mln of previously unemployed workers built 120 thousand public buildings, 77 thousand bridges and over 300 airports.
The damage had been done however and those reforms, although quite succesful the short term, were not able to fix the problem in wider perspective. Hence, year 1937 brought recession upon the USA. On the other hand, initially motivated market was able to stabilize itself long enough to thrive again after the IIWW.
Those standing against the New Dealthough, argue that most of Roosevelt's changes were based on Hoover's plans to revitalize the economy. Even one of his close co-workers said that Roosevelt did utilize Hoover's ideas in order to prepare that plan.
All in all, I believe that even though theNew Dealfailed to bring the US economy back on its feet, it gave it important basis for further changes and ultimately, for healing the results of the Great Depression.