Question 3: The New Deal was not a complete success. Explain how far you agree with this statement.

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Question 3: “The New Deal was not a complete success”. Explain how far you agree with this statement.

Due to the Wall Street Crash in 1933 the New Deal was introduced. The New Deal helped the unemployment problem but did not solve it. The New Deal stopped things from getting any worse in the short term, however in the long term only World War two solved the unemployment crisis. Some historians believe that the New Deal was partly a success and partly a failure. In the opinion I think that the New Deal was a success.

 The New Deal had aimed to provide relief through the Federal Emergency Relief Act (FERA), this aimed to provide direct cash to the needy. $500 million has been given to states to help the starving and homeless people. The money was also used for employment schemes, nursing schools (so parents could go out during the day to find a job), soup kitchens, and blankets. The FERA was up to some point a success, for this aim many things had to be provided, if the government had stopped providing money this aim wouldn’t be a success.

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The New Deal planned to re-build the economy by introducing the Emergency Banking Act, which aimed to solve the financial crisis after the Wall Street Crash. Every bank was closed for a four-day ‘bank holiday’ and only honest, well-run banks with enough cash were allowed to re-open. The Securities Act forced companies giving out new shares to provide full information about the company to the public. The New Deal never solved the underlying economic problems and the US economy took longer to recover than most European countries. Confidence remained low. Throughout the 1930s Americans only spent and invested about ...

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