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Explain why Roosevelt introduced the new deal

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Explain why Roosevelt introduced the new deal F.D Roosevelt introduced the new deal to solve the problems arising from the Wall Street Crash and the great depression. These problems were the collapse of the stock market, mass un employment and the collapse of the banks, the social effects of unemployment, the farming depression and the dust bowl. The great depression lasted throughout the 1930's, disaster struck first for the stock market in October 1929. The professional dealers in shares always knew the stock market would not rise up forever. Some share holders began to sell in the October believing prices were at their peek yet soon by the 21st; the prices began to plunge, leading to the Wall Street Crash on the 24th of October. Businesses had been making a lot of money due to America expanding, surfaced roads increased from 620,000 to 1,000,000. Numbers of electronics such as televisions, tripled. More people were buying shares because American businesses seemed so profitable. The cause of this stock collapse, i.e. the Wall Street Crash, were the companies were manufacturing more goods than people had money to buy even if it was on credit and share holders were using borrowed money to buy shares. The American stock brokers increased their borrowed money by three which the share buyers were then forced to up their share prices with the money they didn't have. ...read more.


Hoover believed it was up to the private businesses to get America out of the depression. He thought the government itself could do very little to decrease the unemployment. Around 120,000 had no work for a year after the crash and in the USA probably more than 40 million were unemployed. By 193- the American communist party organised unemployment rallies though out the USA, there were no welfare states, welfare being the government giving the people money to not stay on the streets, yet this did not seem to happen anywhere. Breadlines became a common sight all over America, a man who was an unemployed worker explains; quote "one man used to earn $8000 a year, now unable to find any work at all." The bread lines were the unemployment queues for a simple meal of bread and soup provided by the local charities or soup kitchens from the local council. With no money for rent, unemployed men and families began to build shacks where they could find unoccupied land; these were named "Hoover-villes." Hoover-villes were cold, unheated shacks, built on any land they could find that wasn't already occupied. Most locations were along railroad embankments or city dumps. The shacks were built from tar paper, tin, old packaging and old car bodies and in many cases only the lucky ones could find the Hoover-villes. ...read more.


and big fall in the stock market, improve unemployment and decrease the figures of the homeless, bring back the banks and encourage the public to trust in them again, he also tackle the social and physical effects if depression and finally battle the dust bowl and its effects. Roosevelt had an awful lot to take care of, and it was up to him to finish it. I feel the New Deal was a political campaign tactic for Roosevelt and nothing more. If the New Deal was put forward how Roosevelt did now then it would be seen and considered as pure politics, it was seen Roosevelt had strong personal beliefs, and he felt he had a right to fight for them I think the New Deal was one of these beliefs therefore he felt he had to do something about it. He believed in an active Government to improve the lives of the public He also had a strong belief in the clich� American Dream. That meant that anyone who worked hard enough could become rich. I think this became a strong ethos that many Americans then and still do now, believed in. Roosevelt knew and had the faith that he could bring America into recovery with the New Deal and the many agencies and acts that were to be passed to solve issues raised by the depression. ...read more.

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