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Explain Why Roosevelt Introduced The New Deal?

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Explain Why Roosevelt Introduced The New Deal? Franklin Delano Roosevelt came into power in America in 1932. At the time, the American economy collapsed and the USA had entered a long depression. The main reason for the depression was the Wall Street crash, which affected all aspects of American life. The worst problem was unemployment, by 1932; at least 12 million citizens were out of work. As there was no unemployment pay, people had to queue up for soup and bread, sometimes, the queues were 10,000 men long. Also, less people were buying clothes, as a result of this, 120,000 of the state of New England's 280,000 textile workers lost their jobs. Companies were overproducing and people could not afford the products, the companies were then going bankrupt, leading to a vicious circle. ...read more.


Farmers suffered greatly, thousands of families who farmed had to sell their farms as it became uneconomical to grow crops. Millions of farmers went to live in the big cities hunting for work. The value of America's foreign trade dropped from $9 billion to $3 billion, as other countries retaliated against US import tariffs. One result of this meant that share values changed dramatically, for example, the shares of the union cigar fell from $113 each, to just $4 each. People blamed the depression on Hoover, as he and the government believed in "Laissez-Faire", which meant that the government took a back seat, did not interfere, and let the economy and companies etc, run with no government help. ...read more.


He believed hat this would be the key to success. Roosevelt wanted to start increasing government intervention and wanted an 'active government'. His main aims were to end the depression, end poverty and unemployment, restore faith and confidence into all aspects of life, he wanted America to be restored as a world power again, people needed relief so he wanted to help them, Roosevelt also decided to improve trade and start exporting goods again. In his first 100 days of presidency, he closed lots of banks, (around 5,000) and helped them restart. He also introduced lots of 'Alphabet Agencies'. Doing all of these things would give relief to the people of America. The country would start to recover and get back on its feet, and by breaking the US tradition of 'Laissez-Faire' by having an active government; the country would be reformed back into a world power. Also, the role of the president would be greatly reformed. ...read more.

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