Explain why Roosevelt introduced the New Deal

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Explain the main features of the new deal.

Roosevelt had promised to take immediate action after the elections. Roosevelt had three main aims, these were; relief, recovery and reform as this was to be a "New Deal" for the Americans. The New Deal was to bring back confidence and stability in banking and finance. He did this by setting up alphabet agencies. This period when he was in office was known as the "hundred days". The "hundred days" was the period in which Roosevelt set up the agencies whilst in office. This gave back a great deal of strength to the economy.

These were the agencies which helped America.

Agricultural Adjustment Act (AAA) was created in order to reduce the surplus of food that farmers were producing. Farmers were paid for not planting crops and eventually prices increased and as a result of this farm income increased also.

Civilian Conservation Corps (CCC) and Civil Works Administration (CWA) were both set up in 1933 to reduce the number of unemployment. The CCC employed unmarried men aged 18-25 from relief, and in return for their hard work, $15 per month would be sent home to help their families get out of poverty and depression. Whereas the CWA paid $15 per week to men who helped to construct schools, buildings etc to help with the problem of unemployment and to help families who had to live in poverty.

Federal Housing Administration (FHS) was also set up in 1933; this organisation gave $15 million to poor households in order to get families out of poverty. Furthermore, the FHA gave literacy lessons to poor children who needed education.

Public Works Administration (PWA) was set up in 1933. This organisation intended to recover industry and unemployment relief. Eventually $4 billion was spent on construction including public buildings.

Tennessee Valley Authority (TVA) was created in 1933 for the economic development of the Tennessee River watershed. The TVA built 20 damns to control flooding, generate hydro-electrical power, and increase agricultural production and to revive the Tennessee Valley region. The TVA also provided jobs, low-costing housing, reforestation and other services.

Works Progress Administration (PWA) was a relief organisation that employed at least 8.5 million people. They built thousands of roads, bridges, schools, post offices to help people and families get out of poverty by providing jobs so that they could earn a living.

Roosevelt needed to restore trust and confidence in the American people and in order to achieve this he had to give American people back their jobs. The Civil Conservation Corps, otherwise known as the CCC were set up to deal with this. They provided work for thousands, although not the best of jobs. This gave Americans back an income. The CCC ensured that American people got a wager, a source of income, which meant people could buy items. This meant confidence would slowly be restored and as confidence was restored people started to take risks. Roosevelt had dealt with the confidence issue that had ruined America. However people were still not confident enough to trust the banks.
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Roosevelt used a simple but effective plan for this. A huge amount of banks were effected by the depression, some of those banks were good others were bad, so Roosevelt closed the bad ones and re-opened the good ones as well as pumping money to them. How were people to know about this and what was being done. "Fireside chats". Roosevelt would talk on the radio to all the Americans about the new changes to the banks and why they could now trust them. This gave the economy a huge increase of trust. Banks were reopened and people ...

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