New Deal - questions and answers.

Authors Avatar

American Coursework

  1. Explain the new features of the New Deal

There were many features to do the new deal.  Roosevelt had promised action and in the first hundred days of his administration, he kept up a very hectic pace of activity.  During the time of his election the economic crisis deepened and bank failures increased.  FDR’s first task was therefore to restore confidence in the banking system.  The most important acts of congress passed in the hundred days were those which tried to bring relief for the unemployed and recovery from the depression in both industry and agriculture.  Alphabet agencies were set up to put the new acts into practice.  The federal government at this point had now played a greater role in American life than ever before.

When FDR came into power America’s economy was on the brink of collapse.  Unemployment stood at 13 million and banks were closed in 38 states.  FDR’s first New Deal victory came about by saving the nation’s banks; he issued a decree closing the nation’s bank and called congress back into session.  The government would aid the banks in the best way they could, strong banks would reopen the next day and weaker banks closed with weaker ones helped by government loans.  By the end of 13th March customers had deposited more cash than they had withdrawn and the crisis was over.  Gradually other banks opened and failures ceased.      

The Alphabet agencies were set up to back up Roosevelt’s idea of Relief, Recover and Reform.  There were many different alphabet agencies to play a different part in fighting the depression. These alphabet agencies provided money, jobs, pension schemes and trade unions; these agencies helped the industry and agriculture.  NIRA was the government’s main weapon to fight against the industrial recovery.  The act set up the NRA whose job it was to draw up codes of fair competition.  The code also provided minimum wages, maximum hours and better working conditions. Joining the NRA was voluntary but firms were persuaded into signing up to these codes.  To revive the agriculture the AAA, RA and REA were set up.  FDR decided that the only way to raise farm prices was to cut down on production.  Farmers did this and received a subsidy raised by a tax on items like flour.  These acts also helped farmers keep land and find new land to farm on.  The social security act was also passed providing old age pensions and, unemployment benefit and disability pay.  This was based on an insurance scheme.  Both employers and employees paid.  This was a very important development since the government accepted responsibility to provide at least a minimum standard of welfare.  The Wagner act recognised the right of workers to organise into trade unions and to negotiate with their employers.  Companies which refused to recognise properly formed unions could be referred to the board.   This act was successful in increasing the power of unions in industries.

Join now!

The Legislation was phase two which followed the hundred days.  This was a much slower pace of reform until 1935 which was when another series of major acts was passed by congress.  BY now it had become clear that the recovery form the depression was partial and slow. The new public work programmes for example were still not being absorbing a large enough percentage of the unemployed.  In addition there were still many areas of American life that FDR and the government wanted to reform.  The acts passed I n 1935 shifted the focus of the new deal.  Whereas the ...

This is a preview of the whole essay