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How Successful was the New Deal 1933-1941 in Pulling America Out of the Economic Depression?

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Introduction

How Successful was the New Deal 1933-1941 in Pulling America Out of the Economic Depression? In this essay I shall be exploring how successful the New Deal was and whether or not it managed to pull America out of depression. I feel that the New Deal did solve many of America's problems and did bring prosperity. However, it also had other factors that surrounded it which also contributed strongly to clearing up America. The Second World War certified America's stability in the future because it meant that other countries were suddenly in just as bad a position as the USA. Therefore, the USA saw an opportunity to build off this and, in a sense, invest in the war. It is this view that I shall be exploring by looking at his opponents views. By doing this I will be able to see all the different opinions on the New Deal and come to a conclusion. In 1933 more and more people were beginning to lose their jobs and 24 percent were unemployed or part of an unemployed family. This was all due to a combination of overproduction and under-consumption. During the twenties the American public were investing heavily in the stock market. People saw it as an opportunity to make quick and easy money. The problem was that share prices can go up and down so it was an unsteady business. ...read more.

Middle

Roosevelt was trying but I think that even with his positive and enthusiastic attitude he was struggling. The introduction of the AAA was a success for farmers because it cut the amount of food produced so that the prices of food coming from farms rose. However, this meant that the poor who lived in the city could not afford good food. The Tennessee Valley Authority (TVA) was the next step and supervised the building of dams which helped stop floods and soil erosion. This meant that the percentage of people in with electricity rose from 3% to 75% in the poorest parts of America. Therefore, two years had passed since the introduction of the New Deal and Roosevelt had managed to achieve much but he had only saved two million out of the eleven million unemployed people still left in America. I feel that the first New Deal was not effective enough in pulling America out of the economic depression. When you look at how much Roosevelt did, compared to how much he actually achieved I begin to see that the problem had been left to bury its roots deep into American society for a long time. I believe Hoover had not addressed the problem properly and had let it become entrenched to the extent that serious work needed to be done to pull America out of depression. However, in all fairness Roosevelt had increased respect for the government and passed many new laws, which put people back to work. ...read more.

Conclusion

This was a serious advantage for Roosevelt which is why I have come to the conclusion that the New Deal itself was successful but only to a certain extent. If you look at the statistics it is obvious that Roosevelt did the best he could because by 1940 the income of the USA had doubled since 1933. It provided jobs and money and, in general made people feel positive. As it says in a textbook called "America: Past and Present", "The moderate nature of his programmes, especially the NRA led to slow and halting industrial recovery" I think that the key words here are slow and halting. It took time but Roosevelt managed to put America on the path to financial recovery despite opposition from the Republicans, the Supreme Court and even certain members of the Democratic Party like Huey Long who disagreed with big businesses having too much power. My view is that World War II was the main reason for ending both the New Deal and the Depression. Responding to the external threats posed by the Powers of the time (Germany, Japan and Italy) Roosevelt and the Congress spent what was necessary to win the war and as a result they also achieved much higher levels of employment and prosperity. Also, if you look at World War Two as part of the New Deal I think that it was a success. It was the deciding factor in the problem and I feel it saved America to a certain extent. . ...read more.

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