Did the American people welcome the New Deal?

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Did the American people welcome the New Deal?

In 1929 the Wall Street Crash cast America into a state of depression. Most sectors of the economy suffered. Businesses were ruined because their shares were now worthless, the large speculators were ruined and the rich lost the most. Workers were laid off and those remaining were paid less. By 1933 there were 14 million unemployed and 5000 banks bankrupt. Agricultural areas were the worst hit because the ‘dust bowl’ phenomenon exacerbated problems the depression had caused. The Republican policy of laissez-faire was no longer what the American people wanted. President Hoover was seen as a ‘do nothing’ president. Hoover’s treatment of the Bonus Marchers decided the American peoples’ minds. The Democrats were voted in with Franklin D Roosevelt as president (FDR). Their policies were interventionist. During his election campaign FDR promised the New Deal. The aims of this deal were: getting Americans back to work, protecting their savings and property, providing relief for the sick old and unemployed and getting American industry and agriculture back on their feet. In the first 100 days of his presidency FDR attempted to tackle the problems of the American people and economy through a variety of acts and organisations: the ‘Alphabet Agencies’. In 1935 FDR introduced a second New Deal to build on the successes of the first. Many groups of people welcomed the New Deal, but certain sectors also opposed it.

Banks, businesses and people who used them supported the New Deal because of the Emergency Banking Act 1933. This was the turning point of the depression. The Federal Government insured peoples’ deposits in banks, against losses caused by public panic. After the shock of seeing all the banks close, people began to regain confidence when the banks reopened with their money protected. This meant that people started investing in shares again and so businesses were able to get back on their feet, boosting employment and wages.

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The poor, homeless and unemployed  supported the New Deal. The Federal Emergency Relief Administration (FERA) 1933, provided short term relief for the hungry and homeless in the form of soup kitchens, blankets and clothing. Money was spent on employment schemes and nursery schools. The Reconstruction Finance Corporation loaned money to state and local governments to assist the poor. The Civilian Conservation Corps (CCC) 1933 was aimed at unemployed young men. Single men aged 18-25 worked for six months in camps. Around 2.5 million young men were helped by the CCC. The Civil Works Administration, (CWA) 1933-34 which was part ...

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