America did not only have economic problems, it had social problems as well. Blacks were treated very badly before the Wall Street Crash, during the boom; they were always unemployed and homeless. Roosevelt wanted to solve this problem, so in his acts; he included blacks on an equal level to white people. The equality of people was a problem, at one end of the spectrum there were the rich who could afford to eat out and own cars, and the opposite was those living in desperate poverty in ‘Hoovervilles’ with no food, clothes of running water. Taxes were increased to solve this problem, however, the government became unpopular with the rich population, as it had to pay much more tax than before.
The president in charge before Roosevelt was Herbert Clarke Hoover. In his election in 1928, Hoover won easily; at the time America was the richest country in the world. Most Americans had jobs and many were rich enough to buy luxuries such as cars, radios and refrigerators. Hoovers main political belief was that the American government should not interfere with people’s lives. He said that America had become rich because the people had worked hard and made money through their own efforts. This he christened as ‘the American style of rugged individualism.’ After his election Hoover believed that all Americans would soon be wealthy enough to own luxuries.
When the depression hit America in 1929, he believed it would only last a few months, and life would soon return to normal. Hoover continually said that ‘prosperity is just around the corner’, he was reluctant to provide any help or support for his people, and he believed they could work their problems out for themselves. This was no help for the American people, because since the Wall Street crash, the entire American Industry was in disarray. The unwelcome attitudes of Herbert Hoover were an encouragement for Roosevelt’s election. He won by a landslide. In 1932, after being elected Franklin Roosevelt began to devise ways in which he could pull America out of their depression and recover its strength.
To help the banking industry Roosevelt introduced the Emergency Banking Act. This forced smaller, weaker banks to go out of business, whilst the government helped the stronger banks to stay open, by loaning them money. Roosevelt also encouraged his people to put their trust back into banks again, and begin to invest; he showed a positive attitude towards their reform. To help those who were living in Hoovervilles in poverty, Roosevelt spent millions of dollars to open soup kitchens and clothing shops, at affordable prices. He also set up agencies that were made to support the unemployed to give them aid.
Roosevelt also set up the ‘alphabet agencies’ known by their initials to improve people’s lives. The Civilian Conservation Corps was set up. This was aimed at people aged between 18 and 25 to strengthen riverbanks and plant trees so that dams could be built by other employment agencies. The Civil Works Administration (CWA) was set up to provide relief for the unemployed who were prepared to voluntarily work for the community schemes. Later on this agency was replaced by the Works Progress Administration, although it had very similar aims, it was far more successful. The workers were paid wages, and they built more useful buildings, such as hospitals, schools, roads, airports and public buildings. Roosevelt set up these agencies to restore people’s self-confidence, living standards, and self-respect and to encourage them to go out and get other work for themselves.
The farmers, being the first people to be affected by the depression were in a bad situation. The Agricultural Adjustment Administration (AAA) was set up to give them money if they agreed to reduce their crop production. It also loaned them money to improve their land and to prevent them from getting evicted from their homes.
The New Deal was also invented by Roosevelt to challenge the previous policies of Herbert Hoover. Hoover’s laws did not govern the country successfully, and Roosevelt knew that if he proposed laws and concepts that contrasted to Hoover’s, he would have a better chance of winning the election. In conclusion, I feel that this idea was why Franklin Roosevelt presented the New Deal. He was aware of the awful state America was in and he knew it was what the American people wanted so if he could give it to them, he would. The New Deal gave the public confidence in the new government whilst recovering the country socially and economically.
