Explain why Roosevelt introduced the New Deal.

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(b) Explain why Roosevelt introduced the New Deal.

Roosevelt introduced the New Deal to America in 1933. He started it for many reasons; one being that America was suffering a great depression after the Wall Street crash.

After the boom in the early 1920's American industry was prosperous, that was until the factories started to over produce goods, this caused the factories to not sell as much resulting in the shares being sold but at a lower price. The factories could no longer survive so closure was the only possible answer. This caused many problems throughout America, unemployment being one of them. The depression caused 2000 banks to collapse as the confidence in them were minimal. The confidence in the government also lacked as people started to realise that the President was not helping the situation. Herbert Hoover felt that 'money should not be spent in a depression' and that soon 'prosperity was around the corner.' By 1930 the unemployment rose to 12million, people were living in the streets with no shelter or food. Americas' situation was critical.

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After being elected in 1932, Franklin Roosevelt started to think of ways in which he could help America to recover its strength yet again. He concentrated on the different people who were suffering for example; banks, poor, unemployed and farmers.

To help the banking industry the Emergency Banking Act forced the weak banks to go out of business whilst the government helped the strong banks to reopen. Roosevelt told the American people that they could trust the banks again and that they should reinvest their money.

To help the poor millions of dollars were spent so that ...

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