The New Deal’s Lasting Impact on the U.S.

Roosevelt took office with the intentions of stabilizing the economy and bringing relief to those who were suffering as a result of the Great Depression. He did so by enacting a group of experimental programs and projects that are collectively known as the New Deal. The New Deal has had a lasting impact on the United States and to this day is known as one of the most significant molding elements in history. The reforms made to the American banking systems are the longest lasting impact of the New Deal.

Roosevelt made these reforms by implementing various programs to stabilize and essentially fix the broken economy and US banks. One of the first programs introduced during the New deal was the Emergency Banking Relief Act, created to aid with the crisis of bank failures. The Emergency Banking Relief Act called for a nation wide banking holiday during which all banks were shut down for two weeks. During this time, Roosevelt called a special session of congress, and they voted to give him absolute control over the national finances and foreign exchange of the United States.

For the first time in history, the president had control over the nations finances, and this is how it remains today. This reform sparked the creation of many others with the same ultimate goal of repairing the nations banking systems. Another pivotal reform during the New Deal was the Glass- Steal Act, also known as the Banking Act of 1933. This act completely restructured America’s banking system by separating commercial and investment banks.

This was crucial because at the time banks were using people’s money to invest in the stock arrest, and that is what caused over five thousand banks to fail during the Great Depression. The commercial banks were now for individual deposits and loans and investment banks were for sophisticated financial products for big U. S. Corporations. One of the most important ideals that transpired from the Banking Act of 1933 was the idea of the Federal Deposit Insurance Cooperation (FIDE). The FIDE is arguably the most important program that emerged from the New Deal.

The FIDE insured deposits up to five thousand dollars-?the amount has mutinously increased since then. For the first time in history, because of the FIDE, citizens had a sense of security about the money they deposited into a bank. Today, the FIDE is still why people trust banks and don’t frantically withdrawal money in times of crisis; they now insure up to two hundred and fifty thousand dollars. If the FIDE had not been created, banks would have likely become extinct because people would not have trusted them with their money.

The New Deal not only helped lift the United States out of the Great Depression, UT it drastically reformed the nation in many ways. Today, some of the most important and efficient programs in America are ones developed from the New Deal. Franklin D. Roosevelt and the New Deal saved America’s banks and by extension the US economy. Without programs like FIDE, Glass- Steal and the Emergency Banking act, banks might not exist as we know them today. The New Deal improved the economy drastically and permanently changed America. The New Deals Lasting Impact on the U. S.

Effectiveness of the New Deal in Bringing

How effective was the New Deal in bringing about social and Economic change? Roosevelt: 2 weekly Press conferences – explained polices carefully + invited spontaneous questions Fireside chats -directly spoke to American public + instilled confidence Charismatic good communicator friendly and open , rather than Hoovers ‘us’ and them.

Flexible in politics , more accepting of direct gob action Not a properly thought out cohesive programmer, responded to circumstances as they arose, Often contradictory 100 days: Used Emergency legislation ‘ Trading with the Enemy Act’ , gave the power bypass congress ratification allowing him to take action quickly and deal with the crisis, Indicating severity of Depression Unprecedented amount of emergency legislation introduced Set up alphabet agencies – which would enact legislation Hoover: Hoover was seen as aloof but he did care and tried to implement policies.

He rigidly stuck to his beliefs, but gave up his own money to help (maybe not being cruel- he genuinely believed it was for the best). He seemed distant when people were starving and said they didn’t work hard enough alienating people. The ‘us’ and them’ divide was worsened by the treatment of bonus army. Did set up veteran’s administration, providing $million on veterans disabilities- still only remembered for Bonus Army.

Veterans to be paid in 1945- because of depression- wanted pay early- by 1932 20000 camped out in protest. Feeling sorry for them, Hoover insisted he could not help them get their pay early but offered to pay $100000 for their transport home. When they refused to leave, tanks and tear gas set on veterans. Hoover was blamed, despite it being General Macarthur idea. Constant public optimism lead many people to think he had lost touch with reality Openness towards Press Corps – able to effectively control newspaper reporting

How effective was it in delivering reform of financial system: Passed laws to ensure economic disaster did not occur again Many contradictory measures believed in balancing budget reluctant to spend excessively on federal projects. ND designed to save capitalist system , measures restore capitalist confidence and expansion , many measures favored big business , frustrated fro their ingratitude for all the ND had done for them but recognized that solving economic problems lay in hands of large corporations Needed the cooperation of businessmen- no alternative structure to change things Led Gob. Alienable to accusation that any of the proposals reflected vested interests. Remained fiscal conservative -? did not adopt a plan of permanent massive state spending. 1933 Emergency Banking Act 1933 1932- run on the banks , closing at 40 [day Closed all banks for 4 days. Banks brought under control of Treasury , who inspected all accounts, only those properly managed and with enough cash allowed to reopen Reconstruction Finance Corporation (RFC) 1933 Bought bank debts to make institutions financially sound before reopening.

Restored confidence in Banking system therefore more money deposited then withdrawn $1 ban posited by April Glass Steal Banking Act 1933 Separated Commercial high street banks from investment banks ordinary peoples deposits would no longer be involved in investment that fuels speculation. Bank officials could not take out personal loans from their own banks. Buying and selling government securities become centralized from Red Reserve banks to board in Washington Also established the Federal Deposit Insurance Act 1933 Individual bank deposits protected against bank failure up to $2500, more permanent security.

Economy Act 1933 Made it clear Roosevelt intended to keep the Federal Budget under control. Cut alarmed of government workers and veteran’s pensions- saved $500 million a year Truth-in-securities Act 1933 Forced brokers to offer clients realistic information about the securities they were selling-? greater regulation of stock market Securities Act 1934 Set up the Securities Exchange Commission.

Given strong legal powers to enforce rules on stockbrokers Prevented insider dealing banned buying shares on the margin. Joseph Kennedy to head the Commission- Seen as irresponsible = main perpetrator for insider dealing- still an effective regulator Highly successful, caught out Richard Whitney for embezzlement in 1938. This showed that the system could search out its own fraudsters Wall Street gained a new credibility US abandon the Gold Standard Foreigners could buy 15% more American goods than before.

Increase the amount of money in circulation in the USA prices increased Generate demand in economy Public Utility Holding Company Act 1935 Abolished pyramid structures- got rid of companies more than twice removed from operating company Allowing more profit for providers at bottom of structure rather than the company at the top who contributed very little but received most profits.

Getting rid of capitalist exploitation Banking Act 1935 Intended to give the federal government control of banking in the USA. Control of banking was removed from private banking to central government in Washington Each Federal Reserve Bank could elect its own head but that person had to be approved by the Federal Reserve Board Faced powerful opposition from bankers in the end final act = compromise.

Some criticized Roosevelt for not being radical enough, wanted more supervision of banking- through Nationalization Felt it favored big business and banks however this was Fad’s intention ,priority was not to reform financial structure in USA but to ensure it survived + functions efficiently to save capitalism, and they were essential for recovery. Many felt that banks were being rewarded for their past incompetence, as banks were given gob. Subsidies to help them stay in business, by requiring that state banks Join the Federal Reserve Board to qualify for insurance, large banks were given more control over smaller ones.

How effective was it in delivering relief and recovery: Civilian Conservation Corps (ICC) 1933 Young men between the age of 17-24 were recruited to work and get involved in building roads, working in soil conservation and taking part in irrigation and flood defense schemes. By 1935, half a million men enrolled in 2000 camps- they were paid $30 a month- $25 of which was sent home. Gave young men a sense of purpose- made them work hard for their relief. However, Jobs only lasted 6 months.

Experience primarily available to young white men ICC not guaranteed work when they returned hometown. Federal Emergency Relief Administration (FEAR) 1933 Allocated $500 million to provide help for the unemployed. Half given as direct aid, half given to help projects particularly in the construction industry. Central government realized they should take responsibility for social welfare. Et important precedent of federal government giving direct funds for relief Gob. Would pay $1 for every $3 spent on relief Opposition -castrates generation reliant on gob handouts.

Those working on relief -treated very badly Overflow of queues/endless delays before relief received States who refused Act knew that Hopkins could not refuse them funds -as those who would suffer were those which the funds were mean to help – the needy + unemployed 1935 paying $25 month to an average family on relief while average monthly minimum wage for subsistence = $100, in sufficient to deal with widespread id needed FDA committed to balancing budged although a degree of direct gob. Essentially act was self-paying through tax rises and borrowing Civil Works Administration (CAW) 1933 Set up to create Jobs over hard winter Initial budget of $million but surpassed this. It was spending $200 million a month. Was successful in creating 4 million Jobs Some argue waste of money prohibiting real recovery as it was Short-lived measure Posts were created with no purpose Many argued lack of overall Strategy Tennessee Valley Authority (TVA) 1933 Only based around South-east of the US but provided Jobs constructing 20 dams which improved flood controls, irrigation and provided cheap electricity.

In 1932- only 2% had access to electricity- by 1945 this increased to 75% and average incomes increased by 200% in the area in this time period. Emergency Relief Appropriation Act April 1935- Tried put as many people as possible into productive work workers would bring recovery through the increased spending power of their wages. Established the Works Progress Administration (WAP) Harry Hopkins ran it (leader of the CAW) largest provision of relief in the Aqua’s history; $5. Billion was provided Improved infrastructure built 2500 hospitals, 6000 schools and 570000 miles of road. Million people were employed by the scheme; however this was only a third of those who needed work. Wages were low ($52 a month which is higher than other relief schemes but lower than industrial rates) – limiting purchasing power. It was only a relief scheme for a year ,not long term employment. Trade unionists were also fierce critics arguing that workers were exploited as cheap labor. Federal Project Number One = group of projects $27 million was approved for the employment of artists, musicians, actors and writers all projects were operated without discrimination

National Youth Administration set up to encourage education and provide part time jobs for students Division of Negro Affairs with a fund specifically for black students to make sure they got a fair chance 1935: Also established the Resettlement agency Plans to resettle 500,000 families from overworked land Envisaged the building of new ‘greenbelt’ communities However, only 3 established, not on scale envisaged , which fell short of expectations only 4441 families were resettled. Reluctance of people to move many wanted Jobs in their existing community Jobs short supply everywhere , rural problems too large to be resolved by resettling

Government set up various schemes to help farmers remain on their land, which contradicted the policies of the RA. Rural Electrification Act May 1935 Aimed to provide electric power throughout the country. Low interest loans given to rural communities to fund the coming of electricity to poorer areas. Electricity access in farming families increased from 12. 6% in 1936 to 35% in 1941. Social conservation Act 1936 Passed in response to declaration that the AAA was unconstitutional. Meant to help with some of the problems of AAA ,notably its failure to protect sharecroppers + meant farmers.

Landlords were now required to share the payments they received from the government for cutting back production with those who worked on their land. Educated farmers on how to use their lands encouraged contour polishing to hold soils and planting of trees Soil erosion had dropped 21 . 7% Long term= beneficial as soil more fertile farms became bigger and more efficient However All too little too late Farmers began to over plough again How effective was in delivering Just relief: Tackle suffering of depression Launched welfare state set up unprecedented relief agencies

Provided money as direct grants and Jobs for the unemployed For the first time, old age insurance and unemployment compensation were provided important precedents set by legislation that could be built on in future, never before had fed gob Ben involved in direct relief Home Owners Refinancing Corporation (HORN)1933 Many homeowners could not repay their mortgages Shortage of public sector accommodation aimed to raise levels of home ownership and the availability of affordable housing Federal Housing Administration 1934 Government backed insurance on long term mortgages- this helped families afford heir homes and boosted the construction industry. Act mainly benefited white middle-class families not low income, unemployed people. Loans NOT be used to renovate existing properties FAA did nothing to aid the poverty-stricken inner cities Farm Mortgaging Refinancing Act Farmers were helped with their debts by rescheduling repayments and avoiding foreclosures.

Indian Reorganization Act 1934 Encouraged native culture allowed natives to take part in schemes- however still remained poorest in society Social Security Act 1935 Aimed to increase provision of unemployment befits within states. And a national yester of benefits Established the principle of federal responsibility, first federal measure of direct help Pensions Funded by contributions by employers and employees. Unemployment benefits paid by payroll taxes Employers were encouraged to made direct contributions unemployment scheme by being given a 90% exemption from tax. Still not relief – general taxes subsidizes system = self- financing . Pensions payments varied from state to state Pension payments weren’t started until 1940, so everyone first receiving them had paid something towards it Unemployment benefit was a maximum of $18 a week for 16 weeks only.

Scheme did not extend to farmers or domestic servants- Those needing most help Conservatives argued Would destroy initiative; make people dependent on the state States compensated for unemployment benefits by cutting back on other relief schemes, making means-tested benefits more strict. Wagner-Steal National Housing Act (September 1937) Designed to clear slums and build public housing. Established the US Housing Authority to loan up to 100% to build new homes, at low interest rates. Congress only allocated $500 million No more than 10% could be spent in one state, even though the northeast cities were worst hit. Inadequate to solve the problem.

The northern cities were seen to be getting the chief part of benefits of the New Deal thus these southern congressmen were determined to reverse this trend. Conservatives feared that public housing was a threat to capitalism, driving the private landlord away. How effective was it in delivering Just economic recovery: Created Jobs Did not end unemployment in US , only brought partial economic recovery Economy grew 10 % per year 1933-1936 1939 level of manufacturing productions had returned to 1929 level , 17 % population still unemployed , not until 1941 that full employment and prosperity detuned to America as a result of the rearmament program.

ND did mitigate the worst effects of the depression on the most vulnerable = a remarkable achievement given the prevailing political an economic beliefs at the time , which were so reluctant to see government taking this initiative. Many of the same programs designed to provide immediate relief were also geared toward long-term economic recovery. The Civilian Conservation Corps and the Public Works Administration put millions of men to work not only to keep them employed but also to improve the national infrastructure. When the United States finally emerged from the Great Depression urine World War II, it had hundreds of new roads and public buildings, widespread electrical power, and replenished resources for industry. (Could be used to prove significance of New Deal of WWW)) National Industry Recovery Act (NAIRA) 1933 Was set up and established two major schemes- very different- shows the lack of coherence. National Recovery Administration (NEAR)1933 Main focus was to restore purchasing power promote fair competition = They set up 541 codes to regulate prices, improve working conditions and minimum wages Yellow dog clauses outlawed Declared employees had a right to Join Labor unions + articulate in collective bargaining Firms which agreed to codes displayed blue eagle logo, hoped that consumers would support those who bore this eagle, aimed at small firms to take advantage of increased custom it would attract.

Codes = unworkable as they were Adopted so quickly so they had Little planning large manufactures such as ford never subscribed to them Small business argued they favored big business, could not compete found It hard to comply With all the regulations E. G. Minimum wage clauses. March 1934- National Recovery Review Board found small firms were disadvantaged, many codes drawn up y representatives big business advantage of them, To restrict competition + Increase profits big companies Dominated the market. Unions – argued it was too weak for their needs, ford still employed union bashers Labor Advisory Boards- set up to mediate disputes – ignored, had little influence, as they were advisory.

This excluded agricultural workers and domestic servants. (Farmers, ethnic minorities and women lack benefits as usual) Tried to please too many people some helped workers/some industries- contradicted each other , did not bring about economic recovery 1935 SC led hat if congress could make laws like Nora , there was no limit to Jurist ion of federal government , damage federalism as little else for state governments to govern. Public Works Administration (PAW) 1933 To provide funding for public works schemes to stimulate social and economic recovery. Funds of $3. Ban to improve road buildings, hospitals, dams and schools- infrastructure is improved and puts money in workers pockets.

Funded 34000 major construction schemes- putting tens of thousands of people in work. Agricultural Adjustment Act (AAA) 1933 Wanted to tackle the key issue of overproduction. Farmers were subsidizes to cut production to reduce surplus increase prices and raise income. Farmers owning their own land were paid to stop producing certain crops. The Commodity Credit Agency made loans to farmers who stored their surplus, they only had to repay when prices reached a specified level. It only employed less than 3000 people at its height, however was successful in pushing up prices but it is argued the AAA helped large scale corporations and not the poorest, sharecroppers and migrants.

Therefore as the majority of rural workers suffered more, the only impact was unemployed industrial workers had to pay more for food which they could not afford and starved. While people were starving, the AAA stored food- or destroyed it. In California peaches were left to rot and 6 million pigs were slaughtered. Many believed agriculture was handled the wrong way- should have focused on increasing demand rather than restricting production. In actual fact, to feed the population adequately production would need to increase. Farm Credit Act- 1933 Offered short-term loans for agricultural production $100 million was designated to re-balance mortgages and stop more farmers losing heir land.

The Wagner-Concern Labor Relations Act Lully 1935) Response to the striking down of the NEAR in 1935. Guaranteed workers rights to collective bargaining through unions of their own choice. Greater stability + putting a fair wage in peoples pockets, help to stimulate long term recovery. National Labor Relations Board set up as a fair minded organization in negotiation Ensured employers did not resort to unfair practices such as discrimination hiring against union members First act to gave union rights in law and in the long-term committed federal government to labor relations role. Agricultural workers and domestic workers excluded wealth Tax Act 1935 Implemented to help pay for the New Deal reforms.

Raised maximum tax for earners over $50000 to 75% Fad’s main aim was to reduce the need for government deficit spending, NOT for major redistribution of wealth. Could not taxed the middle classes , he would have cut their spending power adversely affect economic recovery original proposals were watered down e. G. Inheritance tax was dropped , tax on incomes was cut back from 79% to 75%. Raised comparatively little: $250 million,only 1% of the population earned more than $10,000 Loopholes in the taxes on corporations Seen as attack on the fundamental right of Americans to become rich Bonehead Jones Farm Tenant Act 1937 Help tenants acquire low interest loans and restock their farms as farm ownership declining Tried to readdress ill effects of first AAA. Set up 30 camps for displaced families.

Established a farm security administration. By 1947- 40000 farmers brought farms and 900000 families borrowed $800 million to rehabilitate their farms. Due to the return to prosperity as a result of the Second World War, the vast majority of loans were repaid. Second Agricultural Adjustment Act (AAA)-1938 Established quotas for 5 stable crops- those who kept to quota received subsidies. Fairer to small scale farmers than the first AAA which gave subsidies to those with most land ,lingering feeling that the AAA only really benefited the large wealthy farms wealthy, Came in to operation too late, some had already overproduced before they knew the quotas for 1938.

Fair Labor Standards Actuate Fixed minimum wages ICC an hour and maximum 44 hours of work a week for all industries in interstate commerce, wages of 300000 people immediately increased and hours of 1. Million reduced Ana fines imposed n those who ignored legislation Transport of goods made by child labor was forbidden Minors were forbidden to work in hazardous environments Farmer laborers and domestic servants once again exempt- poorest remain poor Fad’s policies intended to keep people on the land, but due to mechanization, industrialization and economic opportunities in the cities, mass migration ND planned to keep people on land but speeded up flight from the land – this was a huge social change , sped up by WWW economic manufacture and recruitment. ND developed urban sprawl though housing policies

The New Deal Initiative

What is was What it did Type (Relief, Recovery, Reform) Emergency Banking Act Allowed government to review, reorganize, and reopen banks that had enough money to operate People started depositing more than they withdrew Relief, recovery Banking Act (Glass-Steal Act) 1 . Separated commercial banking (institutions that take deposits from individuals and business) from investment banking used to make money 2. Created the Federal Deposit Insurance Corporation. This insured commercial banks up to $5,000 per account Helped people feel safe about their money in banks gain.

Deposits were also protected Reform, recovery Agricultural Adjustment Act Gave farmers payments to not plant crops or to kill extra livestock Decreased supply and allow prices to rise to meet demand. Farmers were helped relief Tennessee Valley Authority (TVA) 1 . Employed people to build dams and perform other work in the poor Tennessee Valley 2. Managed flooding, helped the environment in the Tennessee Valley, and generated power in the region Much of the Tennessee Valley received electricity for the first time Recovery, reform Civilian Conservation Corps (ICC)

Hired young, unemployed men to plant or restore forests Workers were employed, they tended forestland that became state parks, and helped conserve the nation’s natural environment Relief National Recovery Act 1 . Created the National Recovery Administration 2. Channeled money in to PAW The NEAR worked with business and labor to set minimum wages, regulate prices, and protect workers Recovery Public Works Administration 1 . Focused on recovery attempts 2. Grew the nation’s infrastructure by constructing bridges, dams, and building still used today Hired people to work on government-funded construction projects.

It also employed Americans, provided home loans, and helped the unemployed Recovery Social Security Act Relief and reform plan financed by new payroll taxes paid by workers Established a federal program to provide a small, regular income to older Americans and people who could not work because of a disability reform Works Progress Administration (WAP) Aimed to create more new Jobs Employed an average of more than two million people annually in a variety of fields. Workers built highways and public buildings. They cleaned up rivers and practiced environmental conservation. Relief Court-packing Plan Plan to expand the U.

S. Supreme Court by six Judges ( from nine to 15) This would allow President Roosevelt to select certain Judges who would support the New Deal Wagner Act 1 . Guaranteed workers the right to organize unions and practice collective bargaining. 2. It also created the National Labor Relations Board (NELL) to investigate claims of unfair labor practices. Sought to help improve conditions for those who already had Jobs, as well as put people back to work. Reform Fair Labor Standards Act Created fair labor Established a national minimum wage and capped the workweek at 44 hours. It also outlawed child labor.

Effects of the New Deal

The Effects of the New Deal The Great Depression plunged the American people into an economic crisis unlike any endured in this country before. The depression put millions of hardworking individuals into poverty, and for more than a decade neither the free market nor the federal government was able to restore prosperity. Many people who lived through the Depression often saw themselves as the survivors of a terrible battle; in for the rest of their lives many feared losing their money and property again. There were some people who even bought land whenever they could afford it so that if the

Depression returned, they would have somewhere to live. The Great Depression effected Americans socially, economically and politically. The Depression provided the drive for President Franklin D. Roosevelt New Deal. The New Deal was made to help the economy and also help Roosevelt politically. The New Deal forever changed the relationship between the government and the American people. Franklin D. Roosevelt promise of a “new deal” gave hope to millions of impoverished Americans during the Great Depression, but the intractability of the economic situation left much of his pledge unfulfilled (Bills, p. L).

Roosevelt hoped that the New Deal would provide relief, reform, and recovery to save capitalism in America. Roosevelt promised bills and programs for Congress to consider instead of waiting for Congress to act. The New Deal did not end the Depression but it did provide many Jobs for Americans. The government still was not spending enough money to Jumpstarted a hindered economy. In the sass’s, World War II changed everything. To fight in the war the government had to purchase guns, tanks, ships, airplanes, and other military equipment. The defense industry hired many people, who then had more money to spend.

The U. S. Economy had started growing again. The new Deal made relief payments, served school lunches, and ran a program providing pensions. The programs were a response to the Great Depression and focused on the 3 RSI, relief, recovery, and reform. The relief for the unemployed and the poor, the recovery for the economy to return back to normal, and the reform to reform the financial system to prevent a repeat of the Depression was what the or’s stood for. Although many New Deal programs were temporary emergency measure, others lingered long after the return of prosperity (Bills, p. 228).

Many of the New Deal programs were most commonly known by their initials. Some programs aimed at helping farmers, like AAA (Agricultural Adjustment Administration). While others attempted to help control unemployment by hiring people for various projects such as the ICC (Civilian Conservation Corps) and the WAP (Works Progress Administration). Despite Ford’s best effort the Great Depression continued. The nation’s economy continued to fall, unemployment persisted, and people grew angry and more desperate. In 1935 Roosevelt launched a Second New Deal which was more a more aggressive series of deader programs to help the economy.

He created the WAP to provide Jobs for the unemployed. The WAP projects weren’t allowed to compete with private industry, so they focused on building things like post offices, bridges, schools, highways and parks. The WAP also gave work to artists, writers, theater directors and musicians. The WAP also employed many white collar workers such as doctors that had previously lost work (Fonder, 773). In July’s, the National Labor Relations Act, also known as the Wagner Act, created the National Labor Relations Board to supervise onion elections and prevent businesses from treating their workers unfairly.

Many of the New Deals programs still exist today. The Social Security Act created an income assistance system, health coverage, and social services for Americans (Fonder 774). Old age pensions were given to the retired, but were paid for by taxes (Fonder 775). The Wagner Act created the National Labor Relations Board (NELL) oversees labor unions. It also investigated disputes between management and labor. After the bank holiday of 1933, the Federal Deposit Insurance Corporation (FIDE) was created. The FIDE insures bank deposits up to 100,000. It replaces the deposits of individuals if the bank closes.

A federal agency called the Securities and Exchange Commission watches the stock market; to make sure companies follows fair practices for trading stock. The New Deal produced a political realignment, making the Democratic Party the majority. The Republicans were split, with conservatives opposing the entire New Deal as an enemy of business and growth and liberals accepting some of it and promising to make it more efficient. In 1936 the term liberal was usually interpreted s supporters of the New Deal, while conservatives were considered opponents of the New Deal.

Many people believe that there were two New Deals, the first one being for the economy survival, such as railroads, banking and farming. The second new deal is looked at as more liberal and controversial. A liberal in polices favor governments action to bring about social and economic reform. A conservative favors fewer government controls and more individual freedom in economic matters. Some New Deal programs are so popular that everyone supports them. For example, either party wanted to end Social Security, even though the system was in trouble.

The system might run out of money in the future because the amount that people pay in through payroll taxes today does not completely pay for pensions. People were grateful for Roosevelt because they felt like Hoover was not doing anything to help them recover from the Depression. Roosevelt kept many of the Americans spirits up and was friendly and honestly wanted the best for them. Roosevelt was much different from other presidents. As stated earlier, Roosevelt promised bills and orgasm for Congress to consider instead of waiting for Congress to act.

He meant business! The New Deal was a great success in that it improved the federal government’s role in economic affairs. FDA was able to maintain democratic means in America unlike the other countries. His major goals were to create a series of programs designed for relief, recovery, and reform. The New Deal set forth many plans to fix the banking system, provide Jobs while fixing up nature and provided welfare. The New Deal didn’t completely solve the problems that America faced after he depression; however, it did solve a few problems.

Why the New Deal Failed to Revive the U.S. Economy

Why the New Deal Failed to Revive the U. S. Economy BY Blameless 8. Use sources 10, 11 and 12 and your own knowledge ‘The New Deal failed to revive the US economy Explain your answer, using Sources 10, 11 and 12 and your own knowledge of the Issues relating to this controversy. It Is thoroughly debated whether the New Deal did actually provide the momentum to boost the US out of the depression, or whether it was merely coincidental factors such as WI which provided the real recovery.

Johnson insists that the New Deal was in fact counterproductive and hampered the economy and that It was WI that masked the New Deals failure and helped reboot the economy. This view is rebuffed by Jenkins and Shakes who believe that the New Deal, although far from being perfect provided the stability for recovery to occur and thus kick-started the economy. Johnson overall picture of the supposed New Deal recovery was that Is was ‘slow and feeble’ with Its impact being virtually non- existence or In fact stunting growth.

This Is reinforced by Sales, ‘NEAR was so inflexible they frightened away capital and discouraged employers from hiring rocker’. With Johnson stating the only ‘good year was 1937 when unemployment being at 14. 3%’ though rising again to 20% In 1938. Throughout the ass the levels of unemployment never dropped below 10% and that it was only when ‘America on the brink of war’ that unemployment passed below 5% and production levels finally passes 1929 levels for good’. In Johnson view it was WI which eradicated unemployment and ramped up production levels without which the US would have still been stuck In an economic slump.

Furthermore to Indicate the failure of the New Deal, there still were huge inconsistence in the distribution of wealth, with only 12. 6% of all rural farms having electricity, a resource taken for granted by people in the big cities. Additional many acts such as NEAR helped increase the disparity between whites and blacks, the Mullen wage regulation made It Illegal for employers to hire people who were not worth minimum wage because they lacked skills so as a consequence around 500,000 blacks lost their jobs particularly in the south were they worked on farms.

Also The Agricultural Adjustment Act in 1933 mimed to help farmers by cutting farm production and forcing up food prices and help the economy while on the surface seemed helpful, an underlying problem was that the reduced production meant less work for thousands of poor black sharecroppers. Though we must take into consideration Johnson view of the decade a supporter of Melon’s Isolation, he believes that ‘If government interventionism worked, It took nine years and a world was to demonstrate the fact’, and that Hoover should of actually done less than he did and Roosevelt should of Just let the economy rewrite itself.

So he is naturally more inclined to promote the sources that the New Deal had little noticeable effect. Jenkins however stated that people also became significantly better off as the decade progressed’, unemployment was decreasing slowly as Alphabet agencies employed more people. The PAW and the ICC overall employed over 500,000, this in turn slowly restored confidence to the majority of fact the GAP ‘bounced back to $billion by 1937’ when compared to only $billion 4 years ago.

Additionally Roosevelt recreation of a new efficient banking system, it revived much needed confidence boost to investors and provided them with a stable platform to work off and revivalist the economy. Acts such as the Emergency Banking relief Act 1933 gave forth reassurance while the Glass-Steal Act 1933 ironed out all that was wrong with the previous American banking system ensuring none of the problems that had exacerbated the depression occurred again. However Jenkins does admit that the New Deal only softened the worst effects of the crisis’ unemployment was still nowhere near pre depression levels and federal debt grew from$22. Lion in 1933 to $40. 5 billion in 1939′. Alt may cushioned many Americans from the worst of the short term effects of the crisis but did create longer term problems for the future such as the unprecedented levels of national debt. Jenkins also admits that ‘The New Deal had its greatest success in Roosevelt first term’ in which his main aim was to provide relief to the thousands now stranded in poverty. While in the later New Deals focused on the reform and the overall recovery were not nearly so successful, so while socially sound it failed to provide significant the wanted impact to get the economy back on its feet.

Sales concluded that of New Deal agencies ‘some were inspiring-the Civilian Conservation Corps’ while ‘other institutions such as the National Recovery Agency did damage’. The NEAR Shall argued ‘prevented companies from hiring additional workers’ as the new minimum wage of $11 for a 40 week was much too high for small firms causing them to lay off workers though this was later changed in the Fair Labor Standards Act in Jejunely. NEAR seemed to favor large companies that could take advantage of the codes to strict smaller competition and increase their profits.

We must however take into consideration that NEAR although struck down as unconstitutional; parts were later revived by Roosevelt in later legislation such as the introduction labor provisions reappeared in the Wagner Act of 1935 implying it was a success as it was actually working. Furthermore even though the TVA ‘snuffed out a growing private sector’ it could be argued that the government initially controlled it for recovery while having the later intention if necessary to revert it back to a free market.

In conclusion all three historians advocate a different view point on the Depression, though in terms of sustainability of their argument Sales and Jenkins have much more weight. While it is true in Johnson eyes that New Deal recovery was slow, the depression was an unprecedented event so immediate recovery would not have been expected. Sales and Jenkins both agree in some form that it did however provide the much needed platform on what to work off and eventually lead to recovery, the reform buts of the

New Deal amended the American banking system to make sure illegal activities like insider trading stopped and thus enhancing the people’s confidence in the government. To conclude the statement ‘The New Deal failed to revive the US economy is invalid as it did provide recovery, its image of recovery though was coincidently strengthened by the emergence of WI which provided the help to bring America back up to pre-depression levels in terms on unemployment and production. The New Deal helped revive the economy somewhat but the start of WI helped complete it.

What were the Main features of the new deal

The new deal had many different features, but an underlying foundation beneath the entire Idea, was the idea that the federal government had and should thus use Its power to actively Intervene In the economy and do what It could to Improve the standard of living in America. It was a break with the past and an end to the previous Republican belief, that if income of tax revenues fell, then expenditure must also be cut to immediately balance the budget. Roosevelt idea was one very dissimilar, he believed that by spending public money on a huge scale, this would inject demand onto the economy, create Jobs and put the U.

S. A back into work. In the first 100 days of his presidency, he and his government took special power to deal with the immediate crisis. He introduced the Emergency Banking relief Act, which closed all banks for four days, in order to quieted things down and if they had enough funds to operate, they were allowed to re-open. Banks were then promptly banned from investing in the stock market, this increased confidence in banks, which is fundamental for a capitalistic economy. He also Introduced the F. E.

RA, which revived $500,000,000 Immediate relief to the poorest victims of the depression. By introducing these measures in the first 100 days, he showed to the American public, that he unlike the former president Hoover believe in active government to change and improve lives. By introducing these, along with weekly fire-side chats where he used the radio to communicate to the public, he restored confidence to the people. Over the period of his presidency, he Introduced several other acts to further build on the Idea of helping the country through government intervention.

Among the ore successful of the deals, were how he tried to help agriculture, a sector which had been in depression since the 1 ass’s. Prices for food were very low, that so little profit was made on the grain, that farms turned to over-production in order to try and make more money, only worsening the problem, by lowering prices further and draining the soil of so much nutrients, which destroyed the land and caused “dust- bowls”, meaning the soil was blown by the wind Into the alarm and In turn ruining farms.

In order to stop over-production, he Introduced one of his nicknamed Alphabet Agencies”, the AAA to help farmers. They were encouraged to switch to new crops and stop the overproduction of others, this increased farm Income, but was criticized for wasting good at a time when millions were starving. Probably the most successful of all projects, was the the TVA, which paid people to build a series of damns to control floods on the Tennessee River, a poor and backward area in which 50% were dependent on government relief for survival.

This provided temporary employment and then once they were built, the Land could be irrigated and farmed ND thus damns were also used to provide hydro-electricity, which provided plentiful energy to an area previously so poor and backward in it, where previously less than 2% of farms were served by electricity, now all had easy access to electric power. This further attracted industries such as Aluminum smelting and paper making, further regenerating the area. He also created camps to give work to young Americans, which but only 8,000 women. He also introduced the N. R.

A, of which there were two parts, one was the P. W. A, which began major building schemes, which provided Jobs and the Blue Eagle, which was introduced to try and improve wages and working conditions for workers. However this was only recommended, not enforced on companies. But those companies who worked under these conditions, were allowed to print the blue eagle on their products and were more likely to be chosen for government projects. He also gave all workers the right to Join trade union and set up a basic system of welfare including old age pensions, unemployment and sick pay.

Was The New Deal Effective?

It is often said that desperate times call for desperate measures, and when President Franklin D. Roosevelt was elected In 1932, Americans were willing to try anything. In 1929 the stock market crashed and sent the country into what Is known as the Great Depression. The effects were devastating In this prolonged economic crisis; people lost their Jobs, many lost homes due to foreclosure, and millions were forced into poverty and starvation. Roosevelt responded to the crisis with the New

Deal legislation and programs with the intention to provide immediate economic relief, leading to recovery and reform. Even though it can be argued that the New Deal was a failure because it did not completely end the Depression, it was still effective in restoring America’s confidence and getting people involved to contribute during hard times. When Roosevelt took office, he demanded government action. Leaving the nation to work out its problems on its own would Just be unacceptable. A key element In Roosevelt New Deal was agencies to create employment by carrying out public arks.

The largest public works project was the Works Progress Administration (WPAD which employed more than eight million people from 1935-1943. The purpose of the WAP was to provide people with Jobs until the economy recovered from the Great Depression. A huge number of roads, buildings, schools, hospitals, and other public works were built. Roosevelt efforts changed the leadership tone, and inspired those in despair. Millions of people earned a living wage and self-respect, as they were able to contribute during the hard time because of the New Deal. Even though the

New Deal did not solve the problem of unemployment completely, it simply made it not as bad. The New Deal represented leadership that was active and positive. After the Great Depression, people were clueless as to what to do. America had lost its confidence. Therefore when Roosevelt initiated the New Deal, he got people moving again and working to contribute to overcome hard times. Roosevelt showed himself as the leader of the government whose Job was to make sure people had a roof over their heads and food to eat and that he would do his best to get people working and asking money again.

This made people see that the government has a role to play in people’s lives beyond national security, and showed that during time of economic turmoil they can look to the government for guidance (Leonard). After Roosevelt, there has always been controversy over how involved government should be in American’s lives. The New Deal did not in fact end the Great Depression like Roosevelt had hoped it would. This is the main reason why most people argue that the New Deal was a failure. Many say that the New Deal actually prolonged the Depression and made wings worse than they would have been had no effort been made (Cole, Ionian).

Ones who attack the New Deal also claim the polices were short-term polices and that there was no long-term planning for the future (Sales). The New Deal changed the role of government today to be more involved in people’s lives. Roosevelt brought too much government intervention into the economy and people’s lives. Roosevelt New Deal may not have ended the Great Depression completely, but it did solve many problems and it instilled confidence in Americans to do something ether than Just sit there and panic when trouble arises.

It shows us today what bold leadership can actually accomplish in hard economic times (Breeching). Many people argue if the New Deal was effective or not, but it depends on how they define effective. Was the New Deal effective in eliminating unemployment? No. But it was effective in showing Americans what leadership and bravery can do even through today’s unexpected obstacles. This one may argue, is one of the most important long- lasting effects.

The New Deal Then and Now

Alan Brinkley suggests that the New Deal is “emerging as an instructive model” for today’s economic and financial crises. Brinkley then questions if the New Deal is a useful model for today’s problems. The first hundred days of the New Deal have taught President Obama Important lessons In the Obama learns through Roosevelt that an Important contribution to solving the corals Is to “exude confidence and optimism” Into the people. Roosevelt had to act quickly to combat the wave of bank failures that threatened to shut down the financial system.

Roosevelt achieved this by reclaiming a bank holiday and signing the Emergency Banking Act, which allowed inspectors to evaluate banks. Roosevelt gained the people’s attentions through the establishment of the Federal Deposit Insurance Corporation, which guaranteed the citizens that their bank deposits would not be lost. Shoring up the banks was one of the most important achievements of the New Deal. The New Deal and FDA also responded to the average of 25% unemployment rate. Congress created various programs to combat the unemployment, such as the Federal Emergency Relief Administration, the Civil Works Administration, and the Works Progress

Administration. Since the Depression was still on-going In 1935, FDA launched the “second New Deal”, which was a period of activism more productive than the first hundred days. It produced the Social Security Act, which was Important to provide pensions for older Americans, the Wagner Act, which gave unions the right to bargain collectively with employers, and the Fair Labor Standards Act, which minimum wage and a 40 hour work week for labor. The extent of Roosevelt intervention in the American economy awed the entire world.

However, the New Deal did not do much to ND the Depression because of the result of actions the New Deal took and the things that the New Deal did not do. An example of this is the National Recovery Administration, whose goal was the exact opposite of what the economy needed because It raised prices as purchasing power fell. But the more important failure of the New Deal was what It did not do. Instead of shocking the economy back to life by enormously expanding economic activity, quickly and decisively, the New Deal “wavered and quibbled”. The Economy Act of 1933 took $500 million from the economy in a single stroke.

The Social Security System also was a drag on the economy since it did not pay out benefits until 1940. Fad’s severe spending cuts in 1937 led to a sudden and dramatic economic downturn, a recession within a Depression. Roosevelt launched a $5 billion spending plan to combat the budget cuts, which barely helped the economy. However, the idea of spending as an antidote to recession began slowly to find legitimacy, and Americans were now reading Keynes. But, this still could not end the Depression and the only solution came through the inevitable spending in the Second World War.

The great achievements of the New Deal helped us today to understand how to combat recessions. It makes sense for the Obama administration to look at the history of the New Deal, both Its achievements and failures, and learn from It to tackle the current financial catastrophe. The New Deal Then and Now By bureaucracy taught President Obama important lessons in the Obama learns through Roosevelt that an important contribution to solving the crisis is to “exude confidence and optimism” into the people. Roosevelt had to act quickly to combat the wave of bank

Administration. Since the Depression was still on-going in 1935, FDA launched the “second New Deal”, which was a period of activism more productive than the first hundred days. It produced the Social Security Act, which was important to provide because it raised prices as purchasing power fell. But the more important failure of the New Deal was what it did not do. Instead of shocking the economy back to life by sense for the Obama administration to look at the history of the New Deal, both its achievements and failures,

The New Deal: Did It Serve Its Purpose?

FDA introduced the New Deal to help the people that were affected by the depression of 1929. By this time, America would fall into a serious economic crash.! The main aims of the New Deal were relief for the homeless and unemployed, recovery for industry and reform to prevent the depression from happening again. Or at least, that was the theory.! To begin with, Fad’s purpose was to create employment, and many think he did; but they are wrong.

The depression began in 1929 and by that time, the New Deal was created. There was more or less a 15% unemployment by year 1929, and at year 1933 t had increased by a 10%, but people forgot about this when he magically made it decrease too 1. 9% by year 1945. 1 Only that magic works for people who pull rabbits out of their fancy hats, but certainly not for politicians- he didn’t do anything; war did the dirty Job while he got the merits for it. Furthermore, he released the Agriculture Adjustment Act (AAA), which dealt with the recovery of agriculture by encouraging farmers to grow less crops and kill off some of their cattle so that the prices of these products would rise and the farmers could make more money. Sounds great if we omit the fact that it lead to the destruction of lions of acres of crops and millions of farm animals, while Americans were hungry. New Deal agricultural policies provided subsidies based on a farmer’s acreage and output, which means they mainly helped big farmers.

The New Deal displaced poor sharecroppers and tenant farmers, a large number of whom were black. This leads to the next point: since the National Recovery Administration not only offered whites the first crack jobs but also authorized separate and lower pay scales for blacks, and 40% of all black workers made their living as sharecroppers and tenant farmers, the Agriculture Adjustment Act acreage reduction hit blacks hard. The policies of this act forced more than 100,000 blacks off the land in 1933 and 1934. All this mess was caused before the AAA was declared unconstitutional in 1936. If anyone sees the success here, please enlighten me.! In conclusion, the New Deal was closer to being a failure than a success. I do not doubt that Fad’s intentions were good nor that he wanted the best for the Nation. But I firmly claim that he did not succeed. Despite of that, I admire his effort and willingness. In fact, in my opinion he did a good Job. If it’s already hard to save yourself, imagine how it must be to save a country.!

The New Deal and the Great Society

The New Deal and the Great Society BY Kindergarten Katie Wagner Moire Clark AP United States History 25 March 2013 Although the New Deal was established about thirty years before the Great Society was, they both embodied similar characteristics. The origins of these two parts of history clearly resemble each other. Also, the goals of the Great Society largely compare to those of the New Deal. Finally, the New Deal and the Great Society prove to be alike through their lasting legacies.

The Great Society resembles the New Deal in its origins, goals, and social and political legacies. The origins of the Great Society reflects that of the New Deal in various ways. One common origin of these two programs is their basis in Progressive ideas. Although the period after World War I was very conservative, many Progressive reforms were brought to the table and, through the New Deal, could now be used to help the economic crisis (Lawson 41 ).

One Progressive reform from the New Deal was the creation of the National Recovery Administration (NEAR), which helped labor, industry, and the unemployed all at the same time (Kennedy, Cohen, and Bailey, “New Deal” 81 A Great Society Progressive reform Is the Increased funding for the Office of Economic Opportunity (OHO), which helped to restore the tattered Appalachian region (Kennedy, Cohen, and Bailey, “Stormy Sixties” 922). Both of these reforms were based on using government intervention to provide for the working and middle class, which Is a Progressive tactic.

The New Deal and Great Society also had another mutual origin in their necessity because of an economic hardship. Before the New Deal was established, the Great Depression hit America In 1929 (“New Deal” 1). Franklin D. Roosevelt commented, ” read and commerce had declined to dangerously low levels; prices for basic commodities were such as to destroy the value of the assets of national institutions such as banks, savings banks, insurance companies, and others” (“Outlining’ 1). The root of the Great Society was in the lack of economic progression after World War II (“Domestic Policy’ 1). John F. Kennedy promised “… O get America moving again,’ primarily by stimulating economic growth” (“Domestic Police 1 These statements reveal that the economic suffering endured before these programs were enacted is a definite origin of said programs. There are countless ways the Great Society resembles the New Deal In its goals. The reduction or elimination of poverty was clearly a universal goal for both the New Deal and the Great Society. The National Industrial Recovery Act (NAIRA) from the New Deal was passed in 1933 to reform industry by inspiring employers to cooperate in an effort to reduce unemployment and Increase the wages of their employees (Catalane 2-3).

The Economic Opportunity Act of 1 964 was passed In the beginning of the Great Society to create various programs, such as the Head Start program and Volunteers in Service to America (VISTA) (“Great Society’ 148). These two acts both aim to aid low- or I OFF The New Deal and the Great Society had the common goal to preserve America’s natural beauty. The New Deal program established the Civilian Conservation Corps (ICC), which was a youth program that worked to enhance the environment by doing jobs like clearing swamps, planting trees, and other conservation efforts (Catalane 1).

The Great Society Highway Beautification Act was signed in 1965 to fund projects that helped to clean the nation’s highways and clear damage and litter (“Great Society’ 149). These legislations both made an effort to preserve the American environment and all of its beauty. The legacy of the Great Society reflects that of the New Deal in numerous ways. The New Deal and the Great Society share the social legacy of making civil rights an important issue in America. During the New Deal, the Fair Labor Standards Act of 1938 was passed, which recognized a minimum wage, a forty-hour work week, and abolished child labor (Lawson 44).

The Higher Education Act of 1965 (HE) not only gave funding for scholarships, student loans, libraries, and a teacher corps, but also allowed the government to stop funding segregated schools (“Domestic Policy’ 5). Both of these policies provided much needed aid in the civil rights effort that was going on in its time. The expansion of the powers of the government is an obvious political legacy of both the New Deal and the Great Society. The Administration Reorganization Act of the New Deal expanded the powers of the executive branch giving the president authority over various government agencies (Lawson 44).

The Great Society expanded the government’s responsibility over healthcare through the Medicare program, which gave the elderly health insurance that was funded by Social Security taxes, which were established during the New Deal, as well as the Medicaid program, which provided health insurance for poor people under the age of sixty-five Monsoons 234). All of these programs enabled the government to make controversial extensions of its powers. The New Deal and the Great Society can relate to each other in several different ways. The Great Society reflects the New Deal, first, in its origins.

Next, the goals of the New Deal are unmistakably mirrored by those of the Great Society. Lastly, the Great Society’s legacies imitate the legacies of the New Deal. Therefore, The Great Society resembles the New Deal in its origins, goals, and social and political legacies.