Explain the main features of the New Deal

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Explain the main features of the New Deal

A method was needed to repair the damage of the Wall Street Crash. This was called the New Deal. The problem was that Hoover believed in rugged individualism which was that the government stayed out of business, but people needed help. Millions of people went bankrupt and jobless, in fact even if you had a job your salary would been cut severely to about a half of what it should have been. This was simply because of Hoover’s way of believing into rugged individualism. So Roosevelt starts to realise this so he introduced the New Deal. The New Deal is to help the people in need in either family problems or problems in helping people get a job.

On 4th March 1933 for the next three months, the first hundred days of Roosevelt presidency. People saw no actions taken and nothing was different since Hoover. On the 9th March Roosevelt called congress together for a special meeting called emergency banking act. This meeting was to say that banks with enough organisation, good management and had a large amount of money should reopen, while the other small banks with little to no money should stay closed, in about half an hour this meeting had been voted unanimously for it. A few days later Roosevelt said on the radio its better to put your money in your bank than leave it at home. People believed in him and this was called the “Fireside chat”. Starting from the next day onwards people started to put money back into banks. The bank crisis is over.

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To help more, Roosevelt next act is to cut the amount of money spent by the government to help the unemployed. On the 15th March Roosevelt asked the congress to vote for a Economy act. This act is to cut everyone working in the government and working in the armed forces wages by 15%. It also cut the budgets of the government departments by 25%. Again congress voted in favour and this act had saved nearly a billion dollars.

After this Roosevelt is getting more and more trusted and on the 20th March the Beer act was introduced. This is ...

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