- The Public Works Administration which used government money to build schools, roads, dams, bridges and airports. These would be vital once America had recovered but in the short term they created millions of jobs.
- The National Recovery Administration which improved working conditions in the industry and outlawed child labour. It was voluntary, but firms which joined use the blue eagles as a symbol of presidential approval. Over two million employers joined the scheme.
The Tennessee Valley Authority: The Tennessee V alley was a huge area which cut across states. The area had great physical problems. In the wet season the Tennessee River would flood, in the dry it would reduce too a trickle. The farming land around the river was a dust bowl. The soil was eroding and turning the land into desert. It also had great social problems. Within the valley people lived in poverty. The majority of households had no electricity: The problems of the Tennessee Valley were far too large for one state to deal with and it was very difficult for states to co-operate. Roosevelt therefore set up an independent organisation called the Tennessee Valley Authority (TVA) which cut across the powers of local sate governments. The main focus of the TVA’s work was to build a series of dams on the Tennessee River. They transformed the region. The dams made it possible to irrigate the dried-out lands. They also provided electricity for this under-developed area. Above all, the building the dams created thousands of jobs in an area badly it by the Depression.
After 1933, the New Deal was changed, and included; The Works Progress Administration 1935 (WPA), the Social Security Act 1935, the Wagner ct 1935 and the Resettlement Administration 1935.
Question B
There were many reasons why Roosevelt introduced the New Deal, but the main four were: Unemployment, Homelessness, Bank failures and Protests.
When Franklin D. Roosevelt made his New Deal speech in June 1932, America was in a severe economic depression. Over twelve million Americans were unemployed and the number of people out of work was going up by the 12,000 every day. There was no government systems of unemployment pay in America, so most people had to rely on the charity to stay alive. , 'Breadlines’ could be seen in every city as the unemployed lined up in queues, waiting for free bread and soup provided by the charity organisations such as the Salvation Army. Roosevelt had to get these people back in employment and in the mean while he had to find some sort of support system for them. Roosevelt introduced the CCC, CWA and the PDA, were all meant to help this group of people.
Over a million of the unemployed were homeless. Without wages, many people could not afford to pay rent or mortgages. In 1932 alone, 250,000 Americans stopped paying their mortgages. When this happened they were evicted from their homes. Many took to the roads and became hobos’, or tramps. Others moved on to waste ground in the cities where they built huts with old wood, scrap metal and sacking, which they found on rubbish dumps. They called these untidy camps ‘Hoovervilles’ after Herbert Hoover, the President at the time. Farmers in the countryside were just as badly off. With so many people out of work, the cities could not afford to buy all the food the farmers produced. Farmers’ incomes therefore dropped. By 1932, one in twenty of all farm-owners had been evicted from their farms because they could not afford their mortgages repayments. These were drastic problems and Roosevelt tried to sort them out with the introduction of the; FAC, AAA, FERA and HOLC.
In the Depression, many people with savings in the banks stayed alive by taking out their savings. But this led to a new problem. Some small banks did not have enough ready cash to pay =savers their money, so the banks went bankrupt. When a bank failed, saves with deposits in other banks rushed to take their money out, thinking it would be safer to keep it at home. With crows of panic-stricken savers all demanding their money at once, these banks too found that they did not have enough ready cash. Then they also had to close down. In 1932, 1616 banks had closed down for this reason, and the number of bank failures was increasing each month. Roosevelt introduced the Emergency Banking Act, which closed down the banks for three days, so the government could check the banks accounts. Only the banks with tidy and proper accounts could continue trading. This stopped the panic-stricken customers and some people even started to re-invest their money.
Many people affected by the Depression organised protests, hoping to improve their conditions. In the farming state of Iowa, the Farmers Union organised strikes to stop food from reaching the markets. Their aim was to create food shortages in the nearby towns, hoping that this would make prices rise. If food prices rose, the farmers’ incomes would rise too. So they blocked roads with chains and logs and they smashed the windscreens of any trucks they caught being driven to market.
The farmers also banded together to stop eviction of farm-owners who could not pay their mortgages. Using shotguns and pitchforks, they chased away officials who tried to sell farms after evicting the owners. Again Roosevelt tried to help these people, he introduced; the AAA, the aim of this agency was to lower farm production and so cause prices to rise. The FAC was introduced to make loans to farmers so that they were financially secure, and the HOLC was set up to stop people from losing their homes, by given them loans.
Question C
I do not categorically agree with the statement that the New Deal was not a complete success, but I do agree with some of the statement, because of the reasons outlined below:
From the collapse of Wall Street in October 1929 to the presidential election in November 1932, to too many Americans it appeared as if Hoover, the Republican president, was either doing nothing or too little. "Too little, too late" was a frequent label pinned to the presidency of Hoover. That a president, Roosevelt, was actually doing something positive was a huge boost to the American public - they were not being left to fend for themselves. Some who had been badly affected by the Depression had labelled their cardboard box homes "Homerville’s" in disgust of what Hoover was doing for them. The free food handouts they got were nick-named "Hoover Stew". Those at the bottom end of society had no faith in Hoover and the new president gave them exactly this - faith and hope. Here was a president doing something for them.
After The Great Depression America elected Roosevelt to be the President hoping he would get them away from the Depression which was affecting nearly everyone at the time. Roosevelt did get them away from the Depression he made the alphabet agencies; these were Relief, Recovery and Reform agencies helping America. During the New Deal unemployment fell from 25% to 14%, Roosevelt gave the average American hope, however not everything was flawless. With the new deal the N.R.A and the A.A.A were deemed unconstitutional by the Supreme Court, little was done to help the Sharecroppers who didn't own they’re own lands and the consumer prices didn’t rise at the same rate as the earnings.
The Alphabet agencies were Roosevelt’s agencies that helped get America get back on its feet again.
The agencies like the C.W.A and the W.P.A gave jobs to approximately 13 million workers (decreasing unemployment) in repairing airfields, schools, hospitals and roads. The C.C.C gave work to 2.5 million unemployed single men who restored forests, beaches and parks the C.C.C gave the young men training which did help them get jobs later on in life. However everything was not perfect with Roosevelt’s Alphabet agencies, the N.R.A was an agency that dealt with the fair work fair wage giving the American workers who were signed up with them a fair competition. In 1935 two brothers broke one of their acts for selling diseased chickens the N.R.A took them to court where they were found guilty, the brothers appealed to the Supreme court where the supreme court declared that it was the business of the New York State and not Washington. After this 16 cases of the alphabet agencies were under trial and then later the New Deal was declared unconstitutional losing the American people money and jobs.
The unemployment fell from 25% to 14%; the New Deal had found jobs for 11% of the population this would mean that there were fewer jobs to find for the 13% still unemployed. Also that Roosevelt would be able to put more taxes on consumer goods e.g. Fridges and Cookers so that the government would get back some of the billions of dollars they had stuck into the New Deal. Regardless of this the first New Deal was made unconstitutional making the rate of unemployment rise between the years of 1937-39 from 14% to 18% which brought less money into the American Government and Roosevelt. After 1939 the unemployment rated fell rapidly as America had just joined World War two and they were recruiting soldiers, Pilots, sailors and workers in the factories to make machinery and artillery.
Roosevelt connected with the ‘Normal’ American people better than the other presidents before him had done. Roosevelt did this with his fireside chat. Fireside chats were where President Roosevelt would speak to the nation over the radio in they’re own houses. Over the time of Roosevelt’s Presidential rule he had letters saying “Millions of others praying for you every night” and envelopes addressed to “Gods Gift to the USA, the White House”. Roosevelt was not loved by everyone the businessmen disliked Roosevelt as he had declared there would be unions for their workers, the Republicans disliked Roosevelt as they still believed in “Rugged Individualism” and anyway they were the opposition to the democrats. The upper class disliked Roosevelt’s actions as they had the most money out of the United States and they were the ones affected the most by Roosevelt’s taxes. The Radicals had said that the New Deal has done nothing for anyone.
With the New Deal people had jobs and therefore could spend their money or invest it. The economy does recover after the New Deal being made illegal its Gross National Product did goes up but unfortunately not reaching the pre-depression rates the private investment goes up but the consumer prices do not rise as much.
If you look at the individual “alphabet agencies” that Roosevelt introduced you will see that they are not all successes.
Emergency Banking Act; on March 6, 1993 he shut down all of the banks in the nation and forced Congress to pass the Emergency Banking Act which gave the government the opportunity to inspect the health of all banks. The Federal Deposit Insurance Corporation (FDIC) was formed by Congress to insure deposits up to $5000. These measures re-established American faith in banks. Americans were no longer scared that they would lose all of their savings in a bank failure. Government inspectors found that most banks were healthy, and two-thirds were allowed to open soon after. After reopening, deposits had exceeded withdrawals.
The Federal Emergency Relief Administration (FERA); this was led by Harry Hopkins, a former social worker, this agency sent funds to depleting local relief agencies. Within two hours, $5 million were given out. Mr. Hopkins believed that men should be put to work and not be given charity. His program also funded public work programs. It revitalized many deteriorating relief programs.
The Civil Works Administration (CWA); this public work program gave the unemployed jobs building or repairing roads, parks, airports, etc. The CWA provided a psychological and physical boost to its 4 million workers. The Civilian Conservation Corps (CCC); this environmental program put 2.5 million unmarried men to work maintaining and restoring forests, beaches, and parks. Workers earned only $1 a day but received free board and job training. From 1934 to 1937, this program funded similar programs for 8,500 women. The CCC taught the men and women of America how to live independently, thus, increasing their self esteem.
The Indian Reorganization Act of 1934; this act ended the sale of tribal lands and restored ownership of unallocated lands to Native American groups. The outcome was obviously positive for the Native Americans, but not quite as favourable for the rich business men who were using this to make money.
The National Industrial Recovery Act (NIRA) of June 1933; the decline in the industrial prices in 1930s caused business failures and unemployment. The NIRA was formed in order to boost the declining prices, helping businesses and workers. The NIRA also allowed trade associations in many industries to write codes regulating wages, working conditions, production, and prices. It also set a minimum wage. The codes stopped the tailspin of prices for a short time, but soon, when higher wages went into effect, prices rose too. Thus, consumers stopped buying. The continuous cycle of overproduction and under consumption put businesses back into a slump. Some businesses felt that the codes were too complicated and the NRA was too rigid. It was declared unconstitutional later on.
The Public Works Association (PWA); The PWA launched projects such as the Grand Coulee Dam on the Columbia River. This was one of the best parts of the NIRA. The Federal Securities Act of May 1993/ Securities and Exchange Commission (SEC); this act required full disclosure of information on stocks being sold. The SEC regulated the stock market. Congress also gave the Federal Reserve Board the power to regulate the purchase of stock on margin. This did not create pleasing for businesses.
The Home Owners Loan Corporation (HOLC) / Agriculture Adjustment Administration (AAA); In order to help people keep their houses, the HOLC refinanced mortgages of middle-income home owners. The AAA tried to raise farm prices. It used proceeds from a new tax to pay farmers not to raise specific crops and animals. Lower production would, in turn, increase prices. This meant farmers killed off certain animals and crops as they were told to by the AAA. Many could not believe that the federal government was condoning such an action when many Americans were starving. It was declared unconstitutional later on.
The Tennessee Valley Authority (TVA) (May 1993); the TVA helped farmers and created jobs in one of America s least modernized areas. By reactivating a hydroelectric power plant provided cheap electric power, flood control, and recreational opportunities to the entire Tennessee River valley.
The Works Progress Administration (WPA) 1935-1943; this agency provided work for 8 million Americans. The WPA constructed or repaired schools, hospitals, airfields, etc. It greatly decreased unemployment. The Fair Labour Standards Act of 1938; this banned child labour and set a minimum wage. This law was a long awaited triumph for the progressive-era. It created social reformers.
The Social Security Act; this act established a system that provided old-age pensions for workers, survivors benefits for victims of industrial accidents, unemployment insurance, and aid for defendant mothers and children, the blind and physically disabled. Although the original SSA did not cover farm and domestic workers, it did help millions of Americans feel more secure.
As you can see from the acts listed above most of the outcomes were very positive, but still some historians disagree about weather or not The New Deal was a success. Historians that articulate the view that The New Deal was a failure focus on the far wider role for government that Roosevelt created. They criticise the bureaucracy and inefficiency of government intervention, arguing that free enterprise is better at running industries than governments.
Those who criticise the New Deal claim that it never actually got rid of unemployment in America and that Roosevelt's New Deal only had short term impact which lulled the unemployed into thinking that all their troubles were at an end. Many historians believe that only World War Two got America out of the Depression. A considerable amount of historian’s claims that the New Deal only got the wheels of industry turning but no more. Economists who attacked the New Deal claimed that all the acts introduced by the New Deal were short-term policies and that there was no long term planning for America's future. In one sense, they felt, that those who had come to rely on the New Deal were being conned as all the evidence pointed to the fact that at some time in the near future, they were likely to be made unemployed once again - after all, there were only so many trees you could plant and lakes in which to stock fish.
However, for many Americans in the 1930's, Roosevelt was the president who included in his policies the people who had felt excluded by politics once the Depression had taken its hold. Now the excluded were the included.
Roosevelt was determined to use the powers of the government to tackle the Depression. In his first hundred Days’ in office a whole series of new measures were introduced to deal with banking crisis, to help farmers, to make work for the unemployed, to assist industry and to revive depressed areas. Government organisations, known as the ‘alphabet agencies’, were set up to implement the’ New Deal’ legislation. In the first phase of the New Deal, up to 1935, the government took a far greater role in the running of the economy than ever before. This produced opposition from the rich and from businessmen, who saw Roosevelt’s measures as a form of socialism. Several New Deal laws were declared unconstitutional by the Supreme Court. Roosevelt tried to intimidate the Court by threatening to appoint six new judges, but this caused such an outcry that he backed down. Other critics of the New Deal claimed it did not go far enough in protecting the interests of the poor and achieving social justice. There has been much debate about how effective the New Deal was. Unemployment fell, but did not disappear, and in 1937 – 8 the USA was hit by a renewed wave of unemployment. Only after the onset of war in 1939 did the USA’s factories really get back to work again. However in my opinion the New Deal was a success in its own way it brought jobs for people after the Great Depression, it helped the dustbowl in Tennessee and it started to slowly turn America around from what it was after the Depression, but there is no drought that the Second World War was needed to completely cure the problems that the USA had. There is also no knowing weather the problems would have occurred without a war, but my own opinion is that they wouldn’t have, because the foundations they were built on were fairly sound. Roosevelt’s real achievement was to give hope back to the USA. His open, optimistic personality was ideal for coping with the challenges of the Depression.
