However, despite all the achievements mentioned above, some of the measures of the New Deal had failed completely or were only partly successful. First of all, unemployment was still a serious problem as ten per cent of the work force still remained unemployed between 1932 and 1941. In 1937, Roosevelt reduced public spending on the New Deal, which caused production to fall and sent unemployment up to 10.5 million. The government deficit had reached $4 billion that year, and as a result, the American economy was in a devastating state until April 1938. Secondly, The New Deal did little for the poorest people in society such as migrant workers, unskilled labourers and farm labourers. Black sharecroppers were particularly struggling as they were driven off their land and in 1935, around thirty per cent of all black people were living on relief. Racism and discrimination still remained as jobs were usually given to white people and segregation continued in most public places. Another issue which the New Deal did not solve completely was industrial conflict. In 1937, the Congress of Industrial Organisations (CIO) started a series of strikes in many of America’s largest companies such as Ford, General Motors and General Electric. This led to rioting in many factories, which led to severe violence in most cases. Lastly, women were still facing discrimination as their wages were half the wages of men. Only about 8000 women were included in the CCC programme and the Social Security Act gave no protection for the millions of women in domestic work.
Roosevelt was responsible for the improvements in the lives of many Americans in 1930s in several ways. First off, he rescued the banking system and saved many businesses from collapsing by introducing an Emergency Banking Act through Congress. This was done by closing all the banks in the country and only reopening the ones that the government decided were in good financial condition. This ensured the security of people’s savings and restored the public’s confidence in the banking system. Secondly, he relieved the suffering of millions of Americans by organising the alphabet agencies. Agencies such as the CCC and the PWA gave jobs to the 14 million that were unemployed. The FCA made loans to farmers who were on the brink of losing their farms, while the AAA raised farmers’ incomes by paying them to reduce their production which increased the prices of their crops. The TVA gave relief to the citizens of the Tennessee Valley region – a poverty-stricken area with soil erosion and flooding. Lastly, Roosevelt introduced the idea that the US government must be partly responsible for the welfare, health and security of all American citizens. He increased the rights of workers as ordinary working men gained greater protection and higher wages. He also provided social security to the elderly, widows and disabled, and provided subsidies to farmers who had been hit hard by the Depression.
However, Roosevelt and his New Deal were not able to put an end to the Depression – it was the Second World War which had brought the American economy back to full recovery. From 1936 onwards, Roosevelt had run out of ideas on how to find work for the millions unemployed, and as a result, he had failed to reduce unemployment below ten million until the Second World War came. The outbreak of war in Europe brought extra work to American factories and in 1944, unemployment fell to just 670,000. During the war, the American government began investing in larger quantities of military equipment. The War Production Board was set up in 1942 in order to direct the conversion from peacetime industry to war production. For example, car-makers started to produce tanks, and makers of refrigerators and stoves started to produce military weapons. Traditional industries such as coal, iron, steel, oil and ship building dealt with the extra $175 billion of government war contracts. This boosted government spending to a level which brought back full employment to America. The wartime economy had also shown that it was essential for a Federal Government to spend a high portion of the nation’s money in order to create full employment and a higher standard of living.
In conclusion, although Roosevelt was hugely responsible in making life better for many Americans in the 1930s, it was the Second World War which had actually lifted America out of the Great Depression. The war created millions of jobs for the unemployed to manufacture war equipment, which put money back into the economy and boosted people’s confidence. Roosevelt did contribute to improving people’s living conditions by introducing the New Deal, but he could not tackle the problems by himself and needed the government’s support. This was shown in 1937 when the country was hit by a second economic recession due to a cut in government spending. Therefore, it was the Second World War that brought full employment and recovery to the American economy.
