The Works Progress Administration (PWA) was a relief organisation that employed at least 8.5 million people. They built thousands of roads, bridges, schools, post offices to help people and families get out of poverty by providing jobs so that they could earn a living.
Furthermore, the New Deal offered psychological support as well as practical support, this included ‘fireside chats,’ where Roosevelt assured the public that ‘it is safer to keep your money in a reopened bank than under the mattress .’ When the public heard Roosevelt’s speeches on the radio, they said that he was so understanding that he could have he could have been sat right next to them by the fireside hence ‘fireside chats.’
Roosevelt was always giving speeches and informing the public of his actions. Roosevelt skilfully used his inaugural address to reassure the American people that ‘the only thing we have to fear is fear itself,’ this gave the public confidence and faith in the new president.
Roosevelt also recognised the banking crisis and declared a nationwide bank holiday to allow people to regain their nerve. The Emergency Banking Relief Bill brought all banks under federal control. All banks who were capable of reopening were reopened under a licence. Roosevelt had given the banking system much needed time and space to avoid panic.
Overall, the main features of the New Deal were the ‘Alphabet Agencies,’ the ones that I have mentioned are just 6 out of 15 organisations that were set up to help get America out of poverty and the great depression. The main features/ aims of the New Deal were ‘the three R’s,’ Relief, Recovery and Reform. The aims of the three R’s meant that Roosevelt had to put an end to poverty which included an end to unemployment, money for the poor, and end to the banking crisis and the construction of bigger/ better buildings so that new businesses could start up to make more money.
B. Why did Roosevelt introduce the New Deal?
The New Deal introduced in 1932 was designed to put an end to poverty, depression, unemployment, homelessness and lack of confidence that most Americans suffered following the Wall Street Crash of 1929.
One of the most important reasons why Roosevelt introduced the New Deal was to end poverty, which most Americans fell into following the Wall Street Crash and the Great Depression of 1929. ‘Hoover hotels’ or shanty towns known as ‘Homervilles,’ were set up as a result of poverty, because many people had lost their homes.
People were starving because farmers produced too much food which wasn’t being bought, because no one could afford it, therefore farmers simply stopped producing goods.
Around 13 million people became unemployed during the Wall Street Crash. That is a quarter of the workforce. This unemployment led to greater poverty. Furthermore, many people had fought in the war for their country, however when they arrived back home there was no bonus or dole, so how were they supposed to survive? The government had to do something to positive to address these concerns.
Businesses collapsed (well over 100 000 per year) half of America’s banks closed (2,298 in 1931 and over 4 000 in 1933, this was because everyone panicked and withdrew all of their money from shares and banks,) as a result of this world trade ended. Many people were made unemployed, therefore people lost their savings and the USA, and this shows that they could not create wealth and an end to poverty just by trading goods. People began to lose hope and confidence and they desperately needed a new/ better president.
Overall, Roosevelt introduced the New Deal so that America wouldn’t fall into greater poverty, and to try and get America out of poverty. Roosevelt had to do something and fast to get the world’s trade and America’s up and going again so that America didn’t end up as an LEDC.
C. ‘The New Deal was not a complete success.’ Explain how far you agree with this statement.
The New Deal was set up to try and help American’s by getting them out of poverty, unemployment etc. However, historians disagree about how successful the New Deal was.
The main aim of the New Deal was to solve the problem of unemployment, the Democratic government did everything within its power reduce the number of unemployment and it did go down, although the problem did not go away. Critics of the New Deal said that the organisations that were set up to provide jobs, did not provide ‘real jobs,’ and that people were beginning to think that new roads were being constructed just to create more work.
Roosevelt believed that people should be happy in their work and created a new relationship of trust and co-operation between workers and employers. The National recovery codes did a lot to make conditions better in many industries and the Wagner Act established workers’ rights to join unions and to bargain for their wages. However, the USA’s employers hated this aspect of the New Deal and many employers did all they could to deny workers their rights. Many large companies hired thugs to beat up union activists and to intimidate workers who went on strike. In Chicago, 10 demonstrators were shot dead by police and 90 were wounded, this is what later became known as the ‘Memorial Day Massacre.’ Although, during 1937 there were around 47 000 strikes and about 80% were settled in favour of the workers.
Another aim of the New Deal was to improve the lives of farmers. The New Deal did many things to try and do this such as raising prices, encourage soil conservation and provide loans to purchase equipment. However, small farmers saw little benefit from this.
The most recognisable failure of the New Deal is that it did not do much to help families who were living in poverty; it did not improve the poor people’s position in American society. The only two organisations that helped people who were living in poverty were the Emergency Relief, who prevented people from starving and provided jobs for as many as the unemployed as possible, also the Social Security Act of 1935 began to set up a system of national insurance.
Overall, I think that the New Deal was a success to some extent, because it did have many benefits, also it did help America greatly by helping people out of poverty and helping America out of the Great Depression. However, there were also many knock on effects as a result of Roosevelt’s actions and policies, for example employers did not agree to his policies which lead to ‘the Memorial day massacre,’ although not every one can always be pleased. I believe that the New Deal was mainly a success, because it did more good than harm, and it did benefit America greatly.
