Explain why Roosevelt introduced the New Deal

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Explain why Roosevelt introduced the New Deal

There were many reasons why Roosevelt introduced the new deal, and the aims of Roosevelt in introducing this New Deal were getting Americans back to work, protecting their savings and properties, providing relief for the sick, old and unemployed, to get the American industry and agriculture back on it’s feet and to boost the self esteem and to raise the moral of the American people.

Roosevelt also wanted to change the style of the way in which Herbert Hoover was running America previously. Hoover was a Republican. The Republicans were formed in 1854 and dedicated to national rights as a result they had been a dominant power in the running of America since 1856. Coalitions of shifting interests made them modernise and become anti-state especially regarding welfare. Roosevelt however was a Democrat which were formed earlier than the Republicans and were anti-Federalist and again because of coalitions of shifting interests they gained modern support from Liberals and minorities.

In the 1920’s the US economy faced a crisis, although few people recognised that it was happening. It was a crisis of over production which basically meant that America was producing more products or goods than it could sell. The ‘boom’ had been based on selling consumer goods and this meant finding more and more people to buy goods such as fridges, telephones, vacuum cleaners etc. By the late 1920’s the market was running out of customers, and this was the beginning of the Wall Street Crash.

Even before the Wall Street Crash more than 60% of American families did not have enough money to live on. Farmers, unemployed and low-wage earners had no money to spare for consumer goods after they had fed, clothed and housed themselves and their families. The well off could not go on buying and buying as there were limits to how many of these goods they needed and US industry could not sell abroad because other countries had put tariffs on US imports.

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Even the very rich lost money on Wall Street but they could just about afford it, however the vast bulk who had gambled on Wall Street could not afford to lose this money. This had a very important and dramatic impact on the economy as these people could no longer afford to spend money and therefore were not able to buy consumer goods. Therefore as there was no buying shops went bust, and as shops went bust factories had no reason to employ people who were making products that were not being sold. Unemployment became a major issue and ...

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