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Explain why Roosevelt introduced the New Deal

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Peter Hirsch Explain why Roosevelt introduced the New Deal In America 1929, after an economic boom, Wall Street 'crashed' and America fell into a depression. It was due to over production; placing tariffs on foreign goods etc. At the time, President Hoover did not do much to solve the depression as he was a republican. He believed in 'laissez faire' which means 'let do' literally translated. It basically means that the government doesn't get involved in businesses, thus companies make more profit, meaning businesses and shops can give higher wages and everyone gains from the prosperity. What Hoover did do to help was often too little or too late. In 1929 he had said 'the poor man is vanishing from amongst us', yet by 1932 14 million Americans were unemployed. All of this made many Americans dislike him and many people lost trust in the government and he became known as one of the most hated presidents ever. People started to believe he didn't actually care. At the 1932 elections, Hoover was voted out and Franklin Delano Roosevelt was voted in. Immediately he started addressing the problems of the depression. ...read more.


If they were safe they were reopened with government help, but many banks had to be permanently shut down because they were so badly hit. This Emergency Banking Act did succeed but for many Americans it was too late because they had already lost their savings. Some people had lost all their money and some lost their homes. Also it was an important problem for the New Deal to tackle because without stable banks, the economy would not be able to recover. Another reason the New Deal was introduced was the agricultural crisis. Farmers had been overproducing so prices were low during the 1920's as well. Due to over producing and droughts, in the southern states, millions of acres of farming land became infertile and dusty. This was called a 'dust bowl'. This resulted in many farmers going bankrupt and the total farm income fell to just $5 billion. So many farmers were unable to pay mortgages, and when sheriffs arrived to re-posses their farms they set up protests. They armed them selves with pitch forks etc. but many were still forced to leave and had to live in trucks on roads. ...read more.


But the HOLC was too late for some who had already lost their homes. The Wall Street Crash had made the American economy collapse, the banks were bankrupt, there were thousands of homeless and unemployed and Roosevelt had the job of getting it back on its feet. This situation was the key reason Roosevelt introduced the New Deal. He set up the 'Alphabet Agencies' (e.g. AAA, CCC, HOLC...) each one was trying to solve one of the problems of the depression, e.g. the civilian conservation corps (CCC) was set up to provide jobs for unemployed young men on environmental projects. Another reason for the introduction of the New Deal was because president Hoover's ideas of 'Laissez faire' did not work, as unemployment carried on escalating. He soon lost all of the public's trust, and a president with no public trust is almost no use at all. Franklin Delano Roosevelt introduced the New Deal when he became president in 1932 at the time of the great depression, to get America's economy back to normal. He had to sort out the unemployment problem and help millions of Americans get jobs, restore banks, and also the public's faith in the banks, and stop America over-producing. Also he had to restore public confidence in the government because of the damage president Hoover had done, and regain the confidence that Hoover had lost. ...read more.

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