• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Depression and the New Deal the USA 1929-41.

Extracts from this document...


The Depression and the New Deal the USA 1929-41 The three presidents, Harding, Coolidge and Hoover, all believed that the federal government should not impede in the economy. They did not want anything to do with business as they thought they can look after there selves. They thought that they would have an increase in profits would mean higher wages and greater affluence this was later to hinder the increase of people being unemployed. The Congress passed Fordney-McCumber tariff in 1922 , which put high duties on many imports into the USA. This protected US industry and made it hard for other nations to sell to the USA. USA industry did well supplying food, weapons and ammunition to the fighting nations in Europe and this increased in the USA profits on the whole as they got other countries to buy their products as a result US trade increased, while European nations were fighting, US took over their customers. The German chemical industry had a major set back as they wanted to put all the money they towards the war; the USA quickly benefited in this and took the lead in this industry, making dyes, fertilisers, plastics. US farmers increased exports of food to Europe 300% US investors did well from the interest on loans to Europe of $10,300,000,000. After the war they had money to invest in the USA. ...read more.


In the 1932 presidential election, the Democrat candidate was Franklin Delano Roosevelt. Roosevelt came from a rich family, had suffered from polio and, as Governor of New York, had tried to help those suffering in the Great Depression. In the campaign he promised a 'New Deal' for the American people and was elected. The impact of the Depression on people's lives throughout US society many were ruined. They had borrowed more than they could pay back. There were several suicides. Banks began to fail as they lent money, which was not going to be paid back, so this is the main cause why banks went broke. This hit those who were not speculators and pulled down even more people. The banks failed, the was a rise in the unemployed as a result lost many people lost confidence in the USA; no one spent money so demand for goods fell. This resulted in the industry declining. With no new investment and falling demand, workers were laid off. Unemployment reached 14 million by 1933. Americans believed in 'rugged individualism' - everyone should look after himself or herself. There was therefore no dole, no state welfare. People were in dire poverty. Many lost their homes. Many became ashamed and depressed; they were made to feel it was their own fault. People begged, or sold possessions on street-corners. They slept on park-benches or cardboard shacks. ...read more.


In 1935 Senator Huey Long of Louisiana started the 'Share our Wealth' campaign, and planned to tax the rich to give every family an income of $5,000. He intended to stand against Roosevelt in the 1936 presidential election, but was murdered earlier in the year. The success of the new deal was that the unemployment in America had fallen by about 40% since 1933 1940. Blacks were given access to CCCs, although they had separate camps. Black leaders voted strongly for Roosevelt as a result. Roosevelt gave people hope and restored their confidence in the government and the financial system. The Fireside Chats and the replies to letters to the White House convinced many Americans that the USA would pull through. It was the Second World War, which really made the difference. When America joined the war in December 1941, unemployment fell to almost nothing. The main reason why the Recovery was failure in 1937 was because the industry was still only working at 75% of its 1929 level. Many of the schemes that Roosevelt started only lasted for a few months. The CCC provided work for six to nine months only. Some men went on a whole series of CCC camps, as they were called, and still could not find a job at the end. Roosevelt's wife, Eleanor, constantly criticised him for not doing more for blacks and women. When Roosevelt tried to reduce spending in 1937 unemployment rose again to 10,000,000. More spending was needed to bring unemployment down again. By 1941 it stood at 8,000,000. 1 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE USA 1919-1941 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE USA 1919-1941 essays

  1. How successful was the New Deal insolving the problems of the depression in the ...

    The wealthy thought this was very unfair. The opposition played very dirty and made up allegations that he had a Sexually Transmitted Disease (STD) rather than polio. But this didn't change the effect of the vote in the 1936 election. He won by 27 million votes, which were the highest any US president received.

  2. The crash (causes and consequences of the Wall Street Crash)

    Consequently fewer American goods were sold abroad. In fact most historians see it as the very worst thing that Hoover could do and 1,000 economists signed a petition to try and stop its implementation. He did create several agencies to deal with poverty around 1932, possibly as a result of the election in November.

  1. Policies to end the Depression: Hoover vs. Roosevelt

    United States. Although this was a set-back for Roosevelt, his reforms were a great improvement of conditions for many workers at the time, and laid the foundations for modern-day working standards and conditions. O ne possible explanation for Hoover's inaction in the face crisis and massive public outcries such as

  2. How Far Was The New Deal A Success By 1941?

    badly as they had no money to provide for their themselves or their families and this lead to controversy. Roosevelt's main policy was to help America to recover and to achieve this he needed to slash the numbers of unemployment.

  1. To What Extent Did The New Deal Pull America Out Of The Depression?

    the Civil Works Administration, which built roads, bridges, hospitals and basically enhanced the lives of Americans and improved the country. Another scheme was called the Civilian Conservation Corps, which was started to give jobs to unemployed young people. He also helped Farmers to rebuild their businesses and modernise them through laws called the Agricultural Adjustments Acts.

  2. Franklin Delano Roosevelt and the New Deal - How successful was Roosevelt's New ...

    were horrified at the AAA's policies and were very angry when they slaughtered the 6 million baby pigs. On one hand despite all the objections the AAA's 'adjustments' had been successful, they had helped the farm prices raise quickly and with it the incomes of the farmers, many of whom

  1. The USA 1918 – 41 Great Depression and Wall Street crash

    The other source is some statistics showing the performance of the new deal and it's positive effects on the unemployed. Both sources show the vast improvements made by Roosevelt's new deal. Both sources show different into the new deal. One source gives you a figure of unemployed Americans during 1929 - 1939.

  2. How far has the USAs role in world affairs developed since 1929?

    USA's views changed of communism as it was relaxed towards communism, but now, once again it was pursuing the need to contain communist spread. America had changed their view after the USSR's decision to invade Afghanistan. From 1990 - 2000, there was the Gulf war between 1990-1991.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work