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After the Wall Street Crash in 1933 the American economy collapsed and fell into a state of depression. There were a number of problems in 1933 - all of which stemmed from the slump which followed the Wall Street Crash.

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After the Wall Street Crash in 1933 the American economy collapsed and fell into a state of depression. There were a number of problems in 1933 - all of which stemmed from the slump which followed the Wall Street Crash. Firstly, there was no confidence in the money system, or in the banks. In total 1500 banks had been closed and nine million men and women lost their savings because the banks had collapsed. Putting your money in an open bank would be almost like giving your money away because nobody knew when the next bank was going to close. The people in America needed immediate relief. A once strong and prosperous country had been reduced to a country living in poverty and grief. The Americans were not used to this type of life style and they were not prepared for it either. The Americans needed to be rescued from the depression and they needed it immediately. Also because of the depression, millions had lost their jobs and could not find work anywhere else. At this time, not only were the workers not doing too well; farmers were also being destroyed because the prices for products such as wheat and corn were far too low. ...read more.


As more and more people went back to work. Roosevelt introduced Acts which would protect workers� rights. The people were desperate for work and Roosevelt knew that some employers might try to take advantage of them. In 1933 Roosevelt introduced the N.I.R.A. (National Industrial Recovery Act). The main function for this act was to create purchasing power which would help industry recover and stimulate employment. Within this Act the N.R.A (Nation Recovery Administration) was set up. The N.R.A. was aimed at employers and encouraged them to cut out unnecessary competition, to lay down minimum wages and maximum hours and to allow formation of unions. Employers who did follow these guide-lines were awarded with a Blue Eagle Badge which showed that they were participants. The N.I.R.A also set up the P.W.A (Progress Works Administration) which created employment in heavy construction such as dams etc. However, s from essaybank.co.uk ome employers failed to implement the N.R.A. guide-lines and disappointed workers went on strikes. In 1935, the Supreme Court declared N.I.R.A. unconstitutional. However, in the same year, the government then introduced the Wagner Act which safeguarded the right of workers to join unions. By 1939, 9 million people had joined a union. ...read more.


This would boost the economy and pull it out of the depression. His book, Ever Man A King, published in 1933, promised economic security for all. However, Huey Long was extremely unpopular with the rich and he was murdered by a doctor who had been ruined by Long�s schemes. Even though Roosevelt�s New Deal had so much opposition, overall, it was still popular. Roosevelt aimed to please the poor and the working class and they all thought he was a saviour. His popularity was proved in the 1936 Presidential elections when he won with 61% of the votes. He was voted for again in the 1940 presidential elections. This shows that the public opinion was behind him. Roosevelt�s main opposition in the presidential elections was Landan. However, he did not pose a great threat because he was 'buried� in the presidential elections. The USA certainly did benefit from some of the schemes from the New Deal. Production rose from 1933 until the war in 1941 and unemployment fell rapidly. (There was a dip in both production and unemployment in 1937, but this was only temporary). However, the government had to borrow heavily to achieve this. The real recovery of the U.S. economy came with the Second World War. Because of war production, unemployment was at it�s lowest ever. ...read more.

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