Roosevelt then set up a series of government agencies known as the alphabet agencies to deal with the various problems. These were designed to help the unemployed, revive the economy and create fairer society. Roosevelt took some immediate action to try to boost people confidence. He shut down all the banks in the nation and forced the congress to pass the emergency banking act which gave the government opportunity to inspect all the banks. Americans faith in banks increased, people were no longer scared that the would loose all their saving in banks failure. Home owner’s loan corporation (HOLC) was set up to help people financed mortgages of the middle income home owners.
The (AAA) Agriculture Adjustment Administration was set up to help the farmers. The (AAA) tried to raise farm prices. Farmers were convised to cut their production so that the demand could increase. This however created a lot of problems for the consumers especially those who were stricken by the poverty. They could not afford the high price of food. Many could not believe that the government was behind this (AAA). American were starving while the farmers were enjoying the high price of their products. However it was declared unconstitutional later on. Workers progress administration provided work for 8 million Americans, the (WPA) constructed schools, hospitals, motorways and airfields. This organization helped to decrease the unemployment.
Tennessee valley authority (TVA) was set up to help farmers and create jobs in tennese valley one of the least developed areas in America. Dams were built to provide cheap electricity, provide water for irrigation to farms and control flood incase their was any flooding.
Civil works administration (CWA) was responsible for repairing roads, parks and airport. The (CWA) gave job opportunities to unemployed. However, it cost too expensive for the government.
Civil conservation corps (CCC) was set up to provide jobs to young unmarried men. However, it only provided job for 6 months for 6 months to these young men. It also cost too expensive for the government.
One of the best national recovery act was ( PWA) which was set up to build dams .It provided job to a lot of unemployed Americans.
Although unemployed decrease fairly people were still working on a very low wages. The fair labor standard act ( FSA) established minimum wages and maximum hours of work policy. Child labour was also banned by this new act.
Despite some major recovery of the economy the new deal was facing opposition. The Supreme Court ruled that several new deal policies were unconstitutional as they interfered with the rights of individual states. New deal agencies thrown out by Supreme Court included (AAA) and (NRA). Roosevelt was unhappy with the decision of the Supreme Court to declare his laws unconstitutional. He tried to appoint new judges to replaces those that oppose him. Roosevelt was accused of weakening the power of the congress by trying to replace the judges as if he was a dictator.
Despite it’s major success, there were opposition to the new deal. The republicans opposed the new deal, they did not agree with the government interfering with people lives and economic or using the taxpayers money to help the poor and the unemployed. Republicans believe that people should look after themselves.
Business men also opposed the new deal. They did not want the government interference and increasing tax to pay for the new deal programmes and Roosevelt attempts to strengthen workers rights by setting fair labor act which established the minimum wages.
There were also some radicals such as Hueg Long who opposed the new deal as he believed that Roosevelt was not doing enough to help the people.
The new deal failed to sole all problems however, it made some improvement to the economic crisis. Many alphabetical agencies only provided short term relief to the society, for example (CCC) provided work for six months only. The depression did not really end until the Second World War. Black people were still poor they had no rights among the American society. The new deal also did not reach into other parts of the country which were less developed. Women were still discriminated, they had no rights compared to the men. Women and blacks received low wages whereas the white men would earn better and more fairer wages.
I think the new deal brought success to America’s economy despite some minor setbacks. It revived the economic crisis, reduced the unemployment, build the infrastructure. The new deal took America step forward towards modernization.
Abdinasir Hassanor
# 11 f
