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How successful was the new deal?

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Introduction

How successful was the new deal? America's "Great Depression" began with the dramatic crash of the stock market on "Black Thursday", October 24, 1929 when 16 million shares of stock were quickly sold by panicking investors who had lost faith in the American economy. At the height of the Depression in 1933, 24.9% of the Nation's total work force, 12,830,000 people, were unemployed. Wage income for workers who were lucky enough to have kept their jobs fell 42.5% between 1929 and 1933. It was the worst economic disaster in American history. Farm prices fell so drastically that many farmers lost their homes and land. Many went hungry. President Franklin Delano Roosevelt took office in March 1933. He had promised the American people a New Deal and immediately set to work to create jobs for the unemployed. People had different opinions of the New Deal. There were many who opposed his policies. They did not believe that the government should be spending taxpayer's money to find jobs for the unemployed. Roosevelt felt differently to these people. He was prepared to use this money to get the American economy back on track. Between 1932 and 1936 Federal Government spending increased by nearly 80% - most of it on Roosevelt's job creation schemes. The voters supported what Roosevelt was trying to do and re-elected him in 1936, 1940 and 1944. ...read more.

Middle

First, they were used to make cheap electricity. Powerful turbines built into the walls of the dams were driven by jets of water released from the lakes behind them. By 1940 the twenty-one dams were producing 3.2 billion kilowatts of electricity each year. A second benefit of the dams came from the lakes that built up behind them. The lakes were long, wide and deep - ideal for water transport. Locks built into the sides of the dams meant that ships could now travel 1000km up the river, carrying coal, steel and other products to the regions factories. The factories could also now transport their products to distant areas for sale, and this increased their profits. The TVA was definitely another success for Roosevelt. It helped provide profits for some companies because of the transport links it provided and it also protected many of the homes and farms around the Tennessee area. In June 1933, the National Recovery Administration (NRA) was set up. Roosevelt said in a speech that the aim of the NRA was 'the assurance of a reasonable profit to industry and living wages to labour'. This meant that factories should try and make profits but without using child labour. The official in charge of the NRA was General Hugh Johnson, who was an ex soldier. He helped run American industry during the Great War. Johnson drew up codes of fair competition, which he asked businessmen and factory owners to sign. ...read more.

Conclusion

In 1935 the Schechter brothers broke one of the NRA codes by selling diseased chicken to people. The NRA took the Schechter brothers to court. When the brothers were found guilty by the court of breaking a NRA code, they appealed against the verdict. This then went to the Supreme Court who declared that the NRA had no right to meddle in the New York poultry trade. The Schechter brothers were acquitted and the code was declared illegal. This case destroyed the NRA. Overnight 750 codes had to be scrapped by the NRA. The New Deal was a success in some ways and unsuccessful in some ways. There were some agencies that did work such as the CCC, TVA and the AAA and there were some that didn't work like the PWA and the NRA, which worked for a while. Most of the agencies that Roosevelt and others set up worked for some people but didn't work for others. Roosevelt was definitely a success in the way that he gave so many people jobs. There were many people that opposed Roosevelt but were not able to stop him from being re-elected in 1936. I think is because the people had faith in Roosevelt and when he proposed the second new deal, they wanted to see whether or not he could make it work. Most people like Roosevelt as the president of their country although there were people that opposed him. I think Roosevelt's new deal had successes and failures but in the whole I would say it was a success. Chris Pounder ...read more.

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