When FDR became president twelve million people were unemployed. Eight years later, eight million people were still unemployed. Does this mean the New Deal failed?

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When FDR became president twelve million people were unemployed. Eight years later, eight million people were still unemployed. Does this mean the New Deal failed?

  The New Deal was President Franklin D. Roosevelt’s legislative agenda for rescuing the United States from the Great Depression. The Great depression is widely believed to have been caused by the instability of the stock market in the 1920’s, due to a rising number of ‘speculators’. On October 29, 1929, the crash of the U.S. stock market triggered a worldwide financial crisis. In 1929-1933, unemployment in the U.S. soared from 3 percent of the workforce to 25 percent, while manufacturing output collapsed by one-third. The government at the time, the Republicans, lead by president Herbert Hoover stuck by their policies of laissez-faire and rugged individualism. It was obvious that these policies were not helping the disaster, so in the 1932 elections a democrat president, Franklin Delano Roosevelt was elected.

  In Roosevelt’s inaugral speech, he said ‘This great nation will endure as it has endured, will revive and will prosper…Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously.’ Whether he kept to his word and achieved his goal is what is to be discussed.

  One of Roosevelt’s main aims was to restore American’s confidence in their banking system and economy. With the Emergency Banking Act, Roosevelt closed all the banks for four days, for investigation and bank investment in the stock market and then only reopened the trustworthy ones. After this, bank failures, which had previously been ata bout 2250, were almost zero. This scheme was succesful as the confidence was regained, because as soon as the banks were reopened, $1 billion was redeposited in them. The security exchange comission went on to prevent another stock market crash. It did so by setting up a set of rules and regulations preventing specualtion. This was also successful as it stopped reckless speculation ruinign the economy. Loans were also made to businesses to help them survive, and it is eveident that this worked as the number of business failures dramtically dropped from 150 per 10,000 businesses in 1932 to 55 per 10,000 in 1934.

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  Roosevelt went on to meet the urgetn needs of the poor. The Federal Emergency Relief Administration provided the unemployed and homeless with money and shelter. $500 million was spent onsoup kitchens, blankets, employment schemes and nursery schools. Most states were not happy to dish out all this money to the poor, so the governemnt gave every stat $1 for every $3 spent. This scheme gave help to the desperate and desolate. This scheme was very successful. Unempolyment decreased, homeless people were relieved and it provided help for short and long term causes. The Public Works Administration and Works Progress ...

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