Explain the Main Features of the New Deal.

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Abbas Tejani

Explain the Main Features of the New Deal

America in the 1920s was an extremely prosperous nation. People had cars and were living affluent lives - America’s economy was reverberating. However, in 1929, the Wall Street crash happened. It immensely affected the lives of millions living in America. 12.1 million people were unemployed and the country was heading into recession. The American president at the time, Herbert Hoover, didn’t take much action, as he believed that the phase would just pass and America’s economy would revive itself. He was very much mistaken. The people of America had lost all faith in Hoover and soon, they elected a man named Franklin Roosevelt. Roosevelt had a plan; he called this the ‘New Deal’ which he stated would revive the American economy. There were two stages in his plan: The first phase happened in the first 100 days of his presidency. The second phase of his aims, most of which focused on long term goals, was passed in 1935. The policy of the government helping the people of its country was very new to American people, as their previous policy was that people would earn money through labour and work.

The New Deal consisted of three main aims, the first of which was relief. Relief was introduced to help the unemployed. The second aim was recovery. Recovery was aimed to help steady and rebuild the economy again. The last aim was reform. Reform was introduced to create a fair and just society. In order to achieve his goals and aims, Roosevelt created the Alphabet Agencies. Roosevelt was the key man behind the new deal and he set about trying to accomplish these aims and to boost America and its economy. An example of relief was the CCC (Civilian’s Conservation Corps), who aimed to provide work for the unemployed men under the age of 25 – they got paid to work on projects in the countryside. An example of recovery was when Roosevelt introduced the Emergency Banking Act, which aimed at making people trust the banks again, so that they prospered. An example of reform was when Roosevelt introduced the Collective Bargaining, which aimed to bring about trade unions, whose task was to bring about fair wages and fair labour conditions.

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To help deal with the relief part of his New Deal, Roosevelt set up the Alphabet Agencies. This provided much needed assistance to the unemployed. The first of these agencies was the CCC (civilian’s conservation corps). They undertook the aim to provide work for unemployed men under the age of 25, who got paid to work on projects in the countryside such as fishing, farming, planting trees, etc. Due to this project, 3million people went back into work. The Federal Relief Act (FERA) made it their objective to stop starvation by providing grants to local governments to give much ...

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