GCSE History Coursework 07/12/04
Explain why Roosevelt introduced the New Deal
There were three main reasons why Roosevelt introduced the New Deal. The first was economic and social problems in the USA, as a result of the Wall Street Crash. The second reason was because of Hoover, the president before Roosevelt; had been a weak president, and could not solve problems, and often made problems worse. The third was that Roosevelt strongly believed he could help America recover, like he himself has done when he caught polio.
One of the reasons why he introduced the New Deal was because of the problems in the USA. The Wall Street Crash in 1929 affected the USA both socially and economically. This sparked off the Great Depression. Factories were being closed, production fell, and people lost their jobs. Because of this trading of goods stopped, so the Depression affected other countries as well. Socially it was affecting people’s lives, and people were often seen in Bread Lines to get basic food rations. Homeless people began to build Shanty Towns, which became known as ‘Hoovervilles’. Unemployment was now at its highest in 4 years. In 1929, only 1.6 million people were unemployed, but by 1932 over 12 million people were unemployed. When Hoover tried to solve things it made no difference, or in some cases made it worse. In 1930 he put taxes on good imported to America, so that instead of buying foreign goods, which would now be dearer, people would buy America’s own goods. However this did not work; because other countries then put taxes on products coming from America. The ex-WWI soldiers were promised a $500 bonus, and in 1932, 25 000 people marched into Washington DC, and demanded their bonus payments, even though they weren’t payable until 1945. These marchers became known as Bonus Marchers, and all of these problems needed to be solved by Roosevelt.