Explain why Roosevelt introduced the New Deal:

"In Hoover we trusted, now we are busted!" This saying is summing up the presidential election campaign of 1932. Hoover had not done a good job, he failed to deal with the Economic Depression. People were poor and now lived in Hoovervilles. Hoover had already lost the election before it had even begun because of this. The presidential election took place against the backdrop of the biggest economic depression in American History. Franklin D Roosevelt’s campaign promised the Americans “A New Deal”. The New Deal was the title given to a sequence of events and promises that Franklin D Roosevelt initiated between 1933 and 1938. Franklin D Roosevelt was a Democratic candidate who came from a privileged background, however this did not affect the way in which he understood the USA due to a polio attack in 1921. He fought Polio and this gave him the ability to relate to ordinary Americans. Roosevelt was able to beat Hoover by promising to do better than him, by introducing a new deal.

In 1929 America was a booming industrial country, and the richest in the world. In June 1929 this all started to change. Factory outputs started declining due to the simple fact that everyone had the thing being produced. On September the 5th Roger Babson said, “sooner or later there will be a crash in the market”. This caused a decline in the stock market by 3%. The market however recovered rather quickly. The stock market then started to change rapidly. Speculation increased to an all time high, then days after a huge fall happened, this lead to people buying and selling for whatever they could. On Tuesday the 29th October; also known as Black Tuesday the stock market collapsed and the banks went bust. The crash did not have an immediate impact, however it did affect the speculators and they were the immediate losers. Hoover was president at the time of the Wall Street crash and depression, but he failed to solve the problem. Hoover believed in ‘rugged individualism’ and ‘laissez faire’. He thought that the government should not interfere in peoples’ lives as this would encourage them to work less hard and rely on government support more. Hoover thought that countries became prosperous because individuals had to work hard as they were responsible for their own lives. When the depression came around, he thought it would go away by itself, hence his saying, “prosperity is around the corner”. The economy however did not get better it got worse and Hoover did not help himself by not paying unemployment benefit. This made the economy worse. When Hoover finally realized the economy was not going to get better itself he started to lend money out and solve financial problems. This did not work for the simple reason he did too much too late.

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The election campaign of 1932 was very one sided and Roosevelt just needed to promise to be better than Hoover. He caught the mood of voters with his New Deal promise and people were prepared to risk the change in style of government-they had nothing to loose. The people of America were given a new hope from Roosevelt. Roosevelt needed to keep his promises to America. If he did not America would keep deteriorating and it would become a poor and ruined country. The promises he made would give Americans back confidence and restore America’s economy. If he did not ...

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