How successful was the New Deal?

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How successful was the New Deal?

To solve the economic problems created by the Great Depression of the 1930s, President Franklin D. Roosevelt made a New Deal. The aim was to relieve many economic hardships and give Americans faith in the democratic system.  The idea of a New Deal was admired by some people and rejected by others. In this essay I will evaluate the successes and the failures of the New Deal:

Firstly, Roosevelt’s most important step was to prevent banks from collapsing from all American people trying to withdraw their money that the banks didn’t have. So Roosevelt set up the Emergency Relief Act (ERA) which involved closing banks for four days. He knew that this would result in the economy ceasing to function properly.  After the four days were over, banks recovered and the economic panic was over.  To prevent a disaster like the Wall Street Crash again, The Securities Act was introduced. This meant that all companies which sold shares had to publish information about the company, creating a fair deal in the securities market and providing potential investors with sufficient information about both the issuer and the securities to make an informed investment decision. The National Recovery Administration (NRA) also helped the financial reform by creating a code in which would guarantee fair wages and conditions for workers. The companies who agreed were favoured with contracts. This created a partnership between the government and the industry and reduced destructive competition and to helped workers by setting minimum wages and maximum weekly hours.  The Public Works Administration (PWA) was another New Deal agency which concentrated on employing unemployed skilled industrial workers work on constructing large scale public building schemes like bridges and dams. The act also allowed bargaining for better wages.  

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Farmers were another concern – They produced too many crops for the American market which caused prices to decrease rapidly making farmers bankrupt with lots of unwanted produce. In 1933, The Agricultural Adjustment Act (AAA) passed which paid farmers to stop producing crops. This would result in being less produce to sell and the prices of crops would increase because of the small amount of them which would benefit the farmers. The act also gave loans to farmers which provided them with equipment to save them from eviction and encouraging soil conservation.  Tennessee Valley was a region that was affected ...

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