Three questions and answers on The New Deal.

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America Coursework

) Explain the main features of the New Deal

The New Deal's main aim was to pump money back into the economy by giving the unemployed jobs. In Roosevelt's first three months he had taken more action to resolve the depression that Hoover had done throughout his presidency.

Roosevelt called an Emergency banking act in March 1933. This act stated that all banks must be closed for four days for inspection. He did this to find the banks with badly managed accounts or with too little cash and if they did they would remain shut until they were able to run properly.

Roosevelt also introduced the Economy Act which saved nearly a billion dollars by cutting everyone who worked in the armed forces and government's wages. This meant he could afford to invest more into the New Deal.

Roosevelt had realised that prohibition was crushing the economy because people were still purchasing alcohol illegally at a ridiculous price. This meant that people were not only losing money but none of this money was going into the economy. He had realised people would continue to buy alcohol and that they would be able to tax it.

Roosevelt then decided to introduce the Alphabet Agencies. Among these were the Civilian Conservation Corps (CCC), the Agricultural Adjustment Administration (AAA) and the Public Works Act (PWA). They concentrated on improving the economy and the poor living conditions. They provided jobs for the American people hoping that it will boost their moral and get them to spend money which will then boost the economy and get the country up and running again. This was because:

More jobs " More spending " Demand increased " More goods being produced " More pay and therefore more taxes.
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Later on they were criticised and Roosevelt was accused of illegally setting up the agencies

2) Explain, why Roosevelt introduced the New Deal

The USA was in a bad state before Roosevelt introduced the New Deal. This was caused by the attitude of the previous government and the Wall Street Crash,

Roosevelt was elected president in the election of 1932. Before this election America was run by President Hoover. Roosevelt wanted to reform America. He wanted people to live useful lives as well as seeing an end to the depression. Hoover believed in rugged ...

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