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How and with what success did the new deal solve the problems facing the USA in the1930s?

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How and with what success did the new deal solve the problems facing the USA in the 1930s? The New Deal was very successful to pull America out of the problems which the Americans were facing. The New Deal seemed to start solving the problem very quickly and the people started to gain confidence again. And with all of the new deal laws money started to go around in the economical system. That's what it has been like in the beginning. But than the new deal system didn't continue to solve any more problems especially as most of the people were still being paid low. There were a lot of major problems in America at the time. Because of the crash lots of people became unemployed. Up to 5000 banks have been forced to close down because people have borrowed money but then were unable to repay the money to the banks. And lots of people, companies and went bankrupt and prices of products kept dropping. This lead a lot to homelessness and starvation. ...read more.


From about 1933 until 1936 all of the policies were successful. But after a year the government started to spend less money on the project and production fell again. 4 million people were taken away from the bread line and were put into a job. All the people started to work although the wages were very low. The wages were only 1 dollar a day. And within 3 years, 8 million Americans were on a public project. The alphabet agency called the WPA managed to build 116,000 public buildings, 78,000 bridges and 650,000 miles of road. For the short term effects it seemed very good and helped a lot of Americans since they didn't have any work in the first place. In the beginning the Americans were able to live from only one dollar a day. But getting such a low wage for more than a few years was very problematic and didn't work. By the beginning of 1933 there were roughly 14 million people who were unemployed. ...read more.


Doctor Francis Townsend had his own specific ideas. His idea was to give everyone who was 60 and above a pension of 200 dollars a month providing that they would spend the money on the same month and that they would give up their job. Doctor Francis Townsend believed that it would create a lot of jobs for the young people and it would put money back into the economical system. The New Deal was partially very successful. The New Deal policies helped a lot to recover the economics in America. From 1932 until 1936 managed to stabilize the banks mange to put people into work and help other specific group of people. The number of unemployed people and the amount of homelessness dropped a lot. But the work for the people was very badly paid. So the people weren't able to live of the low wages for a long time. The new deal didn't pull America out of depression but it helped America to recover for a very long rime. ...read more.

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