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The New Deal was not a complete success

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The New Deal Was Not A Complete Success.' How Far Do You Agree With This Statement? The New Deal was introduced in 1933 due to the Wall Street crash. It helped the unemployment problem but did not entirely solve it .The Federal Government and President Roosevelt got involved in the economy, which until now was unknown of in America. The New Deal stopped things from getting any worse in the short, however in the long term only WW2 fully cleared the unemployment problem. The New Deal aimed to bring relief through the Federal Emergency Act (FERA) which aimed to direct cash to the poor and needy and stop the threat of starvation that existed. An amount of $500 million was spent on soup, kitchens, blankets employment schemes and nursery schools, so that parents could go out during the day to find a job. The works Progress Administration (WPA) aimed to find emergency short term employment for unskilled workers in construction jobs. The Public Works Administration. ...read more.


This Act was followed up in 1934 by another Securities act which established securities and exchange to control the stock market. Its aim was to regain further confidence in USA businesses. 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 75% of what they had before 1929. When Roosevelt cut the New Deal budget in 1937, the country went back into recession. The Agriculture Adjustment Act (AAA) aimed to stop farmers overproduces food. This would force prices up and make farmers earn more money. The government were given the power to destroy surplus food and give farmers compensation for this. Cotton farmers were told to plough their crops into the ground, the government slaughtered animals that would increase this overproduction of meat stocks, and also agree with farmers the sensible level of food production. ...read more.


Companies that followed the orders were given favours by the government to gain contracts in industry. The National Insurance Recovery Act promised to guarantee workers fair wages and conditions. The New Deal was a success as the Federal Government had got involved for the first time which helped a lot. Acts such as the WPA and the PWA provided relief for the economy and helped the unemployed. The AAA helped agriculture and the Banking Act and the Securities Act helped solve the financial crisis which took place after the Wall Street Crash. The National Insurance Recovery Act improved working conditions for workers and promised to guarantee workers fairer wages. However, the problem of 'dustbowl' continued, unemployment did not go away, most New Deal laws were designed to help women rather than men and the New Deal had a lot of opposition. It was the war that finally solved the problem of unemployment. Samrah Bhatti 11CES History Coursework ...read more.

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