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Explain why Franklin Delano Roosevelt introduced the New Deal.

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Introduction

Explain why Franklin Delano Roosevelt introduced the New Deal On the 24th October and for a second time on the 29th October, share prices on Wall Street, the New York stock exchange fell significantly. This fall became known as the Wall Street Crash. People rushed to sell shares because they realised companies were falling. By October 1929 the selling was frantic, and prices declined because people didn't want to buy shares at high prices. Businesses collapsed and thousands of people were ruined and money had to be loaned and not repaid. This then became no better and led to the Depression which hit the USA in October 1929 and then spread to most countries in the world. As a result of the Great Depression in 1929, USA stopped lending money abroad and called in its loans. By 1930 roughly 2000 banks collapsed as people rushed to withdraw savings. But this wasn't all. Unemployment was rising rapidly throughout the USA and relief for the unemployed was running out. By 1932 over 12 million people were unemployed in USA. Bread lines and evictions were a common sight in most cities and hundreds of thousands roamed the country in search of food, work and shelter. This is shown in Source D of "The USA 1919 - 1941 Sources Booklet" which is a photograph, taken in 1937 of black people queuing for Government relief. ...read more.

Middle

So, the New Deal was primarily introduced by Roosevelt because of the consequences of the Wall Street Crash. As a conclusion the impact of the Wall Street Crash was horrific. At least 12 million people were out of work, with a further 12,000 people being made unemployed every day, 20,000 companies had gone bankrupt, and 1616 banks had gone bankrupt. Also 1 farmer in every 20 was evicted and 23,000 people committed suicide in one year (the highest ever). Consequently after the Wall Street Crash, the rich had lost the most because they had invested the most. This was when Hoover reassured the nation that prosperity was "just around the corner", and cut taxes to help encourage people to buy more goods. However, with hindsight, we know that the worst of the Depression was around the corner. This is because the crash had destroyed one crucial thing to the prosperity in the 1920s - confidence. In 1929, 659 banks failed, and in 1930 a further 1352 went bankrupt. Around the country a billion dollars were withdrawn from banks and put in safe deposit boxes, or stored at home. In addition, in 1931 another 2294 banks turned bankrupt. So whilst Hoover was promising that "prosperity is around the corner", he really wasn't aware that the worst Depression in history was actually forming around the corner. ...read more.

Conclusion

The WPA built 77,000 bridges, 24,000 miles of sewers, 285 airports, and 664,000 miles of road, 122,000 public buildings and 11,000 schools to help neglected areas by improving the vicinity. Many farmers in America were African American, which therefore means that blacks suffered the most as farmers were worst off during the Depressing. One reason for this is because the black American and the farmer had not benefited at all in the jazz age (the booming twenties) and therefore needed a lot of help. The Agricultural Adjustment Act (AAA) aimed to gradually increase the subsidy until farm prices reached a figure could give all farmers a guaranteed minimum income. This helped the farmers and blacks a great deal along with the Tennessee Valley Authority (TVA). Roosevelt had to restore confidence in America and this is what he himself believed. So with hindsight and in my belief, there isn't a simple answer to this question. However I believe the Wall Street Crash was the first disaster which resulted into the Depression, which was a rough time couple of years for everyone not only in America. Furthermore, from 1920 to 1932, the Republicans were in the Presidents seat and, as I believe, despite their successes they did the nation no help with their views of self help. Therefore Roosevelt had to overcome many problems caused throughout the previous 13 years of Harding, Coolidge, and Hoover. ...read more.

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