How Successful Was The New Deal? BY remembers How Successful Was The New Deal? Biggest democratic victories ever recorded in the US. He mainly won this election due to his promises of a New Deal for the American citizens. The New Deal was a series of domestic programs enacted in the United States between 1933 and 1936. But how successful was the New Deal in solving America’s economic depression? One of the main problems was that Americans had little confidence In the banks (due to the Wall Street crash) because of this a lot of Americans were withdrawing or repairing to withdraw all their savings In the bank.
Roosevelt realized that if all Americans withdrew their money it would lead to the collapse of the banking system so passed an Emergency Banking Act in 1933. This meant that the Government declared a ‘bank holiday and closed all banks; the banks were only allowed to reopen when they were declared financially sound. As a consequence America’s confidence was restored In the banking system so Americans kept their money In the bank, which led to the banking system functioning perfectly well.
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Because Roosevelt had loved this problem only a very tiny number of banks collapsed during his time as president. By setting up Alphabet Agencies (US federal government agencies set up as a part of the New Deal) Roosevelt began to target unemployment and poverty. Agencies such as the ICC (Civilian Conservation Corps) and the PAW (Public Works Administration) were created to help the unemployment levels. The C was set up to give men aged 18-25 6 months of work, they had to send most of the pay home to their parents and wives.
The PAW was made to create more permanent jobs, unemployed workers were paid to build schools, roads and hospitals and other public works projects; this not only created immediate Jobs in the construction industry but would later create Job vacancies In the new schools and hospitals. When Roosevelt tackled unemployment and poverty he also helped the economic depression Improve: as people had more money due to new Jobs they could put more money in the bank and spend more on luxuries like the cinema and holidays.
The New Deal helped unemployment go from 14 million in 1933 to 8 million minion UT in 1938 Roosevelt cut down his programmer; by doing his he caused the unemployment levels to rise once again. The New Deal was never fully successful In solving unemployment In the sass; unemployment was only completely solved In 1941 where the USA entered the Second World War. When Roosevelt set up all of the Alphabet Agencies like the FEAR PAW, AAA, ICC, TVA and NAIRA he had to spend a lot of money, which obviously means the taxes would have to rise to fund these government run projects.
This would mean that the American taxpayers would have sees money to spend due to the heavy tax etc. A few Americans, especially Republicans, disapproved of the help the Government principles of ‘laissez fairer’ and ‘rugged individualism’; they said that the New Deal crushed these qualities that had once made America great and too many people were becoming dependent on the state. They thought people should not be given free handouts by agencies like FEAR (an Alphabet Agency that gave the poor food, clothing, etc. ) Overall the New Deal dealt with many problems such as unemployment, poverty and financial crisis.
It could be said that Roosevelt New Deal helped restore confidence to American companies and citizens. The New Deal identified problems, such as the lack of people keeping money in banks, and tried to address them. Roosevelt public work schemes also helped to improve the levels of unemployment. Although the actual amount of success of the New Deal is not clear, Roosevelt policies had at least held together the economy of the USA and provided relief to the victims of the Depression. Realistically, the economy of the USA only fully recovered with the outbreak of World War II.