Explain Why Roosevelt introduced the New Deal?

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Matt Molyneux

Roosevelt and the New Deal

GCSE History Coursework Question 2

Explain Why Roosevelt introduced the New Deal?

Roosevelt wanted to deal with some of America’s social problems.

In the 1920's many changes took place. Crime, poverty, religious and racial differences were still a serious problem. Anti immigrant groups were springing up all over the country after World War I the Ku Klux Klan (KKK) became very popular in the 1920s.  Founded in 1865 by William Nathan Bedford, The KKK began a campaign of terror against free blacks and their white supporters, and got their way by means of racial violence, terror, murder and lynching. Roosevelt wanted to solve racial differences and bring America together.

There was also an ever growing gap between the two classes. There seemed to be a north south divide in America with the majority of the public in the north being wealthy professional workers, but the south being populated by poor agriculturalists that had to work a lot harder for less money. Roosevelt wanted to shrink the gap to once again bring America together.

Roosevelt thought the New Deal could combat these problems. He introduced The Fair Employment Act which required that all federal agencies included in their contracts with private employers a provision obligating the employers not to "discriminate against persons of any race, color, creed, or nationality in matters of employment.” Also The National Housing Act was passed by Congress in 1934 and set up the Federal Housing Authority (FHA). This agency encouraged banks, building and loan associations, to make loans for building homes, small business establishments, and farm buildings. If the FHA approved the plans, it would insure the loan. Roosevelt also set up the Agricultural Adjustment Act (AAA). The AAA paid farmers not to grow crops and not to produce dairy produce such as milk and butter. It also paid them not to raise pigs and lambs. The money to pay the farmers for cutting back production of about 30% was raised by a tax on companies that bought the farm products and processed them into food and clothing.

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It seemed to many Americans that at the start of 1929 the boom years would never end. Roosevelt’s predecessor, Herbert Hoover believed that he had conquered poverty but there were great weaknesses in the economy that would eventually lead to the demise of the prosperity that so many had took for granted.

The boom years after WW1 meant that America became the world’s richest country, this meant that there was a mass production of consumer goods. By 1927 there was an over-production due to a fall in demand because people weren’t spending a lot of their wages ...

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