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Explain why Roosevelt introduced the New Deal

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Introduction

Explain why Roosevelt introduced the New Deal There were many reasons why Roosevelt introduced the new deal, and the aims of Roosevelt in introducing this New Deal were getting Americans back to work, protecting their savings and properties, providing relief for the sick, old and unemployed, to get the American industry and agriculture back on it's feet and to boost the self esteem and to raise the moral of the American people. Roosevelt also wanted to change the style of the way in which Herbert Hoover was running America previously. Hoover was a Republican. The Republicans were formed in 1854 and dedicated to national rights as a result they had been a dominant power in the running of America since 1856. Coalitions of shifting interests made them modernise and become anti-state especially regarding welfare. Roosevelt however was a Democrat which were formed earlier than the Republicans and were anti-Federalist and again because of coalitions of shifting interests they gained modern support from Liberals and minorities. In the 1920's the US economy faced a crisis, although few people recognised that it was happening. It was a crisis of over production which basically meant that America was producing more products or goods than it could sell. ...read more.

Middle

Roosevelt introduced the New Deal to transform America's economy which had been destroyed by the Wall Street Crash. The Wall Street Crash did not only have an effect on America's economy but also on the American people's self-esteem, however because Roosevelt was now doing something about this it gave them a great boost in confidence. In Roosevelt's first 100 days many new acts were introduced which were to form the foundations of the New Deal. It was designed to cover as many issues as could be imagined including social, economical and financial. The success of Roosevelt and the power of backing that he received meant that many of these acts were passed without too much scrutiny. However in the later years the Supreme Court of America deemed many of the acts unconstitutional. On March 15th 1933 Roosevelt asked Congress to pass on 'economy act' which meant that everyone who worked for the government and the armed forces would take a 15% pay cut and also that government spending was cut by 25%. The money saved from this act (approximately $1 billion) could be used to finance the New Deal. ...read more.

Conclusion

The Farm Credit Administration used Federal money to pay off farm creditors and save farmers from bankruptcy. Finally the Home Owners Loan Corporation again used Federal money to pay off mortgages so that people did not lose their homes. All of the agencies and acts gave a boost of confidence to the American public as something was now being done. People were working and the economy was improving, they could now put their savings in banks without fears of losing it and plans and benefits for the sick elderly and unemployed were introduced. To finance his new deal Roosevelt had introduced higher taxes for the richer. The rich felt like they had been betrayed but Roosevelt simply said that he would tread on the toes of the few while the majority benefited. The New Deal also faced a lot of opposition from the Supreme Court. It took a stance from a legal viewpoint and in 1935 declared the National Recovery Administration illegal. The following year it declared the Agricultural Adjustment Act illegal as well. The Supreme Court said that any attempt to help the farmers should come from state level and not Federal level. Altogether the Supreme Court declared 11 out of the 16 Alphabet Laws unconstitutional. ...read more.

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