New deal did it bring about the recovery of the American economy

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Melissa Brettle        11M        27th August 2009

Did the new deal policies during the period 1933-41 in the USA bring about a recovery in the American economy?

The New Deal Policies had aspects which made the recovery of the American economy a success. However there were aspects which made is a failure. One reason why the New Deal policies brought about the recovery of the American Economy was that it reduced unemployment and boosted American industry. Using a variety of Alphabet Agencies the New Deal enabled millions of unemployed people to find work which helped the community such as building schools and roads and planting trees. Another reason that made the recovery happen because of the New Deal was worker's rights and wages increased, the NRA in particular made sure that people were treated fairly and earned a decent wage for the work they had done. Also the New Deal brought about the recovery of the American Economy by showing the public that Roosevelt cared and by increasing morale in the public. Thousands of people sent the president letters describing what a good job he was doing. Also the New Deal provided relief for people, some of the Alphabet Agencies handed out food and clothes to do this. On the other hand the New Deal policies did not bring about the recovery of the American Economy because World War Two created far more jobs than the New Deal did. The War required people to build weapons, make resources, and join the armed forces and many more opportunities. The New Deal did not benefit certain groups of people in society which would mean that the New Deal did not bring about the recovery of the American Economy. For Example the NRA and Child Labour Laws meant that businessmen were unable to find cheap labour and as a result their profit margins narrowed. Another reason as to why the Policies of the New Deal did not bring about a recovery to the American Economy was that Roosevelt did little to sort out the problems that existed before 1929. After the New Deal women still had few rights and Racism was still strong in many parts of the country. The final reason as to why the New Deal did not bring about the recovery was because it wasted money. It did this by increasing taxes so much that employers didn't have enough money to employ more people this meant that the government was spending money in prolonging unemployment. Because of the increase in employment and the boost to the economy that was created by the New Deal Policies, the New Deal did bring about the recovery of the American economy.

        The New Deal Policies brought about a recovery by reducing unemployment and boosting industry. This was a very significant reason. Alphabet Agencies were set up to help combat the great depression, to provide work rather than provide dole to millions of people. One of the more successful agencies was the CCC (Civilian Conservation Corps) which Provided work for three million unemployed men paying one dollar a day and board and lodge this particular alphabet agency also helped the environment. Another successful Alphabet agency was the CWA (Civil Works Association) which provided immediate relief from poverty, just before the winter of 1933-34. The CWA created jobs, such as improving schools and building airports and roads, for four and a half million people and it lasted a year. The WPA (Works Progress Administration) worked similarly to the CWA, it created jobs for unskilled workers including artists and actors and provided over three million people with jobs. This means that the New Deal Policies brought about a recovery in the American economy because it lowered unemployment, a lower unemployment rate meant that more people were earning and that there was more money to spend which in turn means people in retail would have benefited and they would also have a larger amount of money to spend. Altogether there would be an increase in the average amount of money being spent and as a consequence the American economy would start improving.

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        Workers rights and wages increasing was another reason that meant the New Deal policies did bring about the recovery in the American Economy. The NRA was set up in order to ensure that workers were treated fairly. To do this it created the “codes of fair competition” the codes were things such as a minimum wage and maximum working hours Also the NRA allowed companies to set price floors. The NRA was voluntary but companies that did support the NRA normally had the blue eagle on packages and in shop windows. Companies that didn't support the NRA were boycotted by ...

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