• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

How effective was the New Deal in tackling the economic problems of the 1930's?

Extracts from this document...

Introduction

How effective was the New Deal in tackling the economic problems of the 1930's? When Franklin Delano Roosevelt was elected President of the U.S.A. he promised a 'New Deal' with the American people to rescue the country from the dire state that the great depression had put it in. Before describing how effective the New Deal was in tackling the economic problems of the U.S. it is important to describe how these problems came about. The poor economic status of America in 1933 when FDR took office, were directly due to the Wall Street Crash of 1929. This stock market crash caused the collapse of many banks, industries and business's throughout the U.S. and caused a massive rise in unemployment - from 1.6 million (3% of the work force) just before the crash to 12.8 million (25% of the work force) in 1933. Tindal and Shi state that "the crash had revealed the fundamental business of the country to be unsound."1 Therefore FDR had a mammoth task to overcome these problems and place America economy on a stable footing. ...read more.

Middle

With the Banking Act FDR had reaffirmed confidence in the banks and had started to slow journey to economic recovery, so in this sense this New Deal legislation had proved very effective. After this early work Roosevelt pushed through a mass of New Deal legislation at a very quick pace in since what has become known as the 'Hundred Days'. The banks crisis was over, but unemployment was still at the chronic level of over thirteen million, and millions of farm and home owners were in debt. The administration created two organisations to solve the problem, the Farm Credit Administration (FCA) and then passed the Home Owner's Loan Act to provide the same service to city dwellers through the Home Owner's Loan Corporation. Both these actions helped to slow down the rate of foreclosures and helped to strengthen the banking system, so both of these responses can be seen as effective work upon the economy. To tackle the chronic unemployment the administration set up the Civilian Conservation Corps. ...read more.

Conclusion

The NRA was finally killed off in 1935 by the Supreme Court who ruled that it was unconstitutional. At the time the NRA was generally considered to be a failure, but in retrospect it seem a shrewd piece of legislation. The NRA did help businesses on the road to recovery, businesses became stronger and this was a good thing for the economy. One area where the New Deal reforms were sadly lacking was in the area of trade. The New Deal never had a coherent overseas trade policy. FDR over-looked Americas obligations to look after other, smaller nations financial problems, he was only interested in the U.S. In conclusion the New Deal was partially successful in recovering America from its economic problems it suffered after the Wall Street crash of 1929. I say only partially because, America's economic growth at the end of Roosevelt's first administration was not brilliant, but it was in a far healthier position than in 1933. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE USA 1919-1941 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE USA 1919-1941 essays

  1. The crash (causes and consequences of the Wall Street Crash)

    - Agricultural Marketing Board 1929. A nine-person marketing board to set up cooperatives to store and dispose of farm surpluses in an orderly way. But there was no pressure to restrict production. Because it bought surpluses at above the market prices it was accused of encouraging over-production.

  2. GCSE History Coursework Assignment B - Was the New Deal a Success?

    S B Fuller says that when support is offered to the American people they lose confidence in themselves and soup lines and the Depression were caused by this. We are told in the second paragraph that, 'welfare kills a man's initiative.

  1. Did the New Deal end the Depression in the USA in the 1930's?

    The reason this worked was because the people of America kept their savings in the bank. Americans kept their savings in the bank because they had confidence in Roosevelt. He did regular fireside chats on the radio, in which he explained his conduct to the American people, and he ask the people to work with him.

  2. 'The causes and effects of the great depression caused equal suffering to all of ...

    effected to the same level therefore there was different experience during that time. Source 6 Source 6 is a medical report (primary source) created by a medical officer for children at a school. This source highlights malnutrition, which is associated with poverty.

  1. T.Roosevelt and the New Deal.

    They restored confidence in government. Reporters who travelled the country brought back reports of the new spirit to be seen around the USA. Historians too agree that Roosevelt's bold and decisive action did have a marked effect on the American people.

  2. How successfully did Roosevelt Solve the Problems of the US in the 1930s?

    Roosevelt promised to take action and overcome fear to help the USA out of the social and economical tangle it found itself in. Roosevelt made over 70 speeches in the months running up to the election, in them he had promised Americans a 'New Deal', this aimed to solve unemployment,

  1. How successful was the New Deal - FDR

    the never fully recovered until the war which solved financial problems America faced. Overall, attitudes in America were much more positive as confidence and faith was restored in the government. This was very important as the economy in the USA was based on confidence and with this they could slowly have the economy recovered.

  2. The United States 1919 - 1941, The Wall Street Crash

    It shows that the President and the Republican Party firmly believed in rugged individualism meaning that they did not get involved and interfere into the lives of people. This tells us that since the government did not aid their people with their problems and disputes, that there was no help

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work