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 the public. The NLRA also helped to increase worker's rights and wages, it had five unfair labour policies for the employer which were interfering with the freedom of the employee to join or assist labour organisations, assisting or dominating a labour organization. Discriminating against employees that support labour organizations, discriminating against employees who file charges or testify and refusing to bargain. When the AYC (American Youth Congress) issued a “Declaration of the Rights of American Youth” in 1936 Children had more rights and child labour was abolished. This helped the economy because EXPLANATION
Another way in which the New Deal brought about a recovery in the American Economy was Roosevelt's improvement in the morale of the people and that he showed he cared. Roosevelt tactfully used his inauguration speech to reassure the American Public. He is famous for saying “the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror”. Roosevelt's Fireside chats also helped to improve morale. The fireside chats were a series of thirty radio speeches given by Roosevelt where he would say things such as "I can assure you that it is safer to keep your money in a reopened bank than under the mattress”. He would sometimes begin his speeches with “Good evening friends” in his warm tones this would restore the public's confidence in him and the New Deal. Thousands of letters were sent to President Roosevelt describing that he was doing a great job. The Letters would thank Roosevelt for helping the writer find a job or for the food and clothes that was given to the writer. Roosevelt declared a nationwide bank holiday because of the banking crisis giving people time to regain their nerves. This helped to avoid total panic which in any case would just worsen the state of the American Economy. It also gave banks time and space to get there act together and start improving the economy which meant that the New Deal did result in the recovery of the American Economy.
Another reason that made the New Deal a Success was that Roosevelt offered people relief and food. He managed this through some of the Alphabet Agencies such as FERA (Federal Emergency Relief Administration). FERA was an immediate relief for early 1933 until December 1935 it aimed to give the needy and their dependants the minimum standard of living and also to help maintain their physical well-being. Harry L. Hopkins, who headed FERA, was adamant that the relief the FERA provided should be work based and gave millions to states in order to start projects. FERA also provided food, clothes and shelter, helping in particular the homeless. The SSA replaces FERA in 1935. The SSA was a social insurance program consisting of benefits for retirement, disability, survivors, unemployment and for needy families. To qualify for the benefits people had to pay one lump sum at the beginning and then they would be given monthly cheques. Relief was also provided in the shape of other Alphabet Agencies which created Jobs. Jobs in themselves were a form of relief meaning that people didn't have to worry about how to feed their families or how they are going to pay for new clothes. The relief meant that people could get back on their feet and would have the encouragement to find a job and start supporting themselves and their families with out the government for assistance.
World War Two was the reason for the recovery of the American Economy and the New Deal did not bring it about. The War created millions of jobs for a huge variety of people. There were jobs in factories, jobs as officials, jobs as soldiers and many others. There would have been thousands of unemployed men who would have joined the armed forces. Women would have had to replace men in all sorts of professions. There would have also been a huge boom in economy dues to the amount of money being spent by the government to make weapons and artillery. Governments all around the world would be borrowing and spending on a scale sufficient enough to eliminate unemployment. Figures show that the only time when unemployment rate fell to the levels similar to that of before 1929 was in 1939 which was the beginning of the Second World War. The New Deal seemed to be pointless in comparison to the effect World War Two had in the economy. It created more jobs meaning more money was being earned and more money was being spent which in turn meant the economy was recovering.
The New Deal did not bring about a recovery because not everyone benefited from the New Deal. Black people were among the group that did not benefit. Black farmers were mainly the farmers that lost their jobs through the AAA (Agricultural Adjustment Act) which made farmers farm less land and keep less animals, this was done in the hope that decreasing production will increase demand which in turn would raise prices and farmers will have more income, all of which would benefit the economy however only a few farmers would have more income rather than all farmers. Tax payers didn't benefit because of the increase in taxes caused by the governments programs to alleviate unemployment. Businessmen didn't benefit from the New Deal policies either. They now had less control over there employees, and they were spending more and more on labour because of the Worker's new rights and the were spending more on taxes because of the New Deals Alphabet agencies. This would of course mean that they weren't profiting as much as they had been previously. If businesses were not profiting then people were not making a lot of money which meant that there wasn't a lot of money going around the economy which means it still was not recovering.
Roosevelt did little to sort out the problems that existed before 1929, which is why the policies of the New Deal did not bring about a recovery in the American Economy. Organised crime was still just as active during the 30's and 40's as in the 20’s. In 1936 there are the same amount of murders and killing because of organised crime as there was 10 years before. Women still did not have the same rights as men, nor were they entitled to the same wage as men for doing the same job. Women were still not seen as breadwinners and the majority of government programs for unemployment were for men. The new deal there was no change in women's rights or there wages. Racism was still rife in the South of America which was where seventy-five-percent of all black Americans lived. Black Americans tended to be poorer and were exploited by white landowners. It was still 30 or so years before desegregation and quality of life was a lot lower for black Americans. All of these things still existed after the New Deal which badly affected the economy because if two sets of people weren't earning a lot, they would not have much money to spend, which means there is less money in the economy. Organised crime also leads to less money in the economy due to it being taken without out anything to put back into the economy this would lead to the American Economy not being recovered.
Another reason as to why the New Deal did not bring about the recovery oh the American Economy was that it just wasted money. All of the employment programs were costing the tax payers. Taxes for just about everything had risen significantly. Roosevelt forced consumers to pay high prices for products, and because of the AAA food prices had been raised, discounting was even banned. This all meant that tax payers didn't have enough money to spend on coats, books, cars, food and various other things that would stimulate the growth of the economy. A lot of money was being put into something that was going backwards and as a result As a result the New Deal was only prolonging the Depression and did not bring about the recovery of the American Economy.
In conclusion there were reasons to say that the New Deal policies did not cause the recovery in the American Economy. Not everyone in society benefited like some business men having to pay more to keep their businesses running. Really World War Two created more jobs than the New Deal Policies. Factory jobs and jobs in the service were a result of the break out of world war two. The New Deal wasted money by raising taxes so all the money people were earning went straight to the government. Roosevelt did little to sort out problem that existed before 1929 such as racism, which was still an issue after the New Deal. Because of this one could think that the recovery of the American Economy had nothing to do with the New Deal. However there were reasons as to why it could be seen that the New Deal policies brought about the recovery of the American Economy. These are things such as Roosevelt showing he cared and improving morale using the fireside chats. Also it did actually reduce unemployment using some of the Alphabet Agencies. Because of the NRA, workers had more rights and better wages also child labour was banned. Roosevelt offered relief and food to people he did this through Alphabet Agencies such as FERA. This would lead people to believe that the New Deal Policies did bring about the recovery of the American Economy. The most significant reason in deciding whether or not it was the New Deal Policies that brought about the recovery of the American Economy would be whether or not it did benefit the economy in general. Since the New Deal did lower unemployment, it meant that more people were earning more money. More money would mean there was more spending around the country which would mean that there was more earning within retail, it would continue like that and as a result there was more money circulating the American Economy which means it was recovering. Taking this all into consideration you can conclude that the New Deal Policies did bring about the recovery of the American Economy.