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I think that you’re mostly correct about the New Deal in that it was hugely beneficial. There are lots of caveats, for example racist lending laws, but overall it was good for people.
Although the reason it was possible at all is because people were doubting the whole capitalist model. And by “doubting” I mean considering revolution like Russia in 1917. Without a renegotiation between labor and capital the whole fucking house of cards might have collapsed completely. That might have been worse… or maybe not?