Why Did Franklin D. Roosevelt introduce The New Deal?

        The economic consequences of the Wall Street Crash were evident enough to create the Great Depression. The over production in industry meant surplus. The customers have what they want and try to keep what little money they have. Wages were cut, n average, by sixty percent. A huge loss. As demand decreases exports were out of the question. Overconfidence in the twenties led to a high tariff overseas. This had happened in the twenties in order to protect the American industry from foreign competition but now because imports had high tariffs countries had retaliated and put their prices up. America couldn’t afford export their goods. Accordingly business was cut and production fell. The Industrial and Agricultural manufacture was reduced by forty percent. These cutbacks led to employers not being able to afford to pay employees with decent wages or even have many staff. Therefore unemployment rose greatly. Fourteen million people were unemployed by 1933 blatantly leading to even less purchase of produce. Overproduction wasn’t the only major consequence, the banking crisis also worsened. Between 1929 and 1933 the number of banks bankrupt went up by over four thousand. That’s and average of over eighty three banks a month. Herbert Hoover was nowhere to be seen. His Laissez Faire attitude was clearly making America the victim. The Americans withdrew their savings for fear of even further loss. A prospect becoming very likely. Facing additional cost was something that they were beginning to do.

        There was then the social aftermath that America was left with. Towns had queues of people lining up for soup and bread, food was becoming a luxury. Immigrants looking for work lived in shanty towns also known as ‘Hoovervilles‘. The wealthy were affected less an could afford to throw away their scraps. Rubbish tips were regularly raided for these remainders of food. In New York, 1931, one hundred and thirty eight people went to hospital with malnutrition. Forty five died. The town workers were left unemployed. In Cleveland fifty percent of steel workers were jobless and an even higher eighty percent in Toledo. The hardest hit were the rural and agricultural areas. The twenties weren’t a prosperous time for them anyway but the crash led them into even further despair. The central southern states were over farmed and millions of acres turned into ‘Dustbowl’. the farmers were driven off land because they couldn’t afford their mortgages. They lost their homes an businesses. To look for work many went to California. Unfortunately they had no skills and were ridiculed as a majority came from Oklahoma. The not so affectionate name ‘Okies’ was given to these ‘Yokel’ farmers.

        In all of this Herbert Hoover stood at the sidelines and didn’t do anything. He became increasingly unpopular due to his Laissez Faire point of view and Failing Policies. The Republicans and Hoover kept it up despite the ever dwindling status. He became even more hated when ex-war veterans began marching in Washington for their ‘bonus’ payment promised in 1924. The five hundred dollars wasn’t due until 1945 but the veterans understandably wanted it then because of the poor state of financial welfare in America at the time. Twenty five thousand camped around the city but Hoover refused to meet them. By summer it was a stalemate and Herbert Hoover had had them evicted by the army. He claimed they were communists and criminals an hadn’t been in the army. In  fact sixty five percent had seventy percent went overseas. This harsh treatment of such heroes was the final straw for many people and public opinion was very strongly against him. He attempted to salvage American industry after the crash and pleaded with employers to keep staff and average wage. But his solutions were temporary and lacked belief. He placed an even higher tariff on imports in 1930 creating a retribution form other countries making it virtually impossible for America to sell their surplus.

        When in 1933 Roosevelt became resident he had a lot of clearing up to do. “The only limit to our realisation of tomorrow will be our doubts of today.” His enthusiasm was undeniable and won over the unaided and vulnerable people of America. His main aim was to regain the American’s trust in the banks again. The economy was dire and to get it back the banks were the obvious first step.

He next wanted to help save property and savings for the gloomy Americans. Their outlook so far was poor and Roosevelt wanted to be the light at the end of their tunnel.

American industry and Agriculture seemed to have fallen forever. But Roosevelt’s passion and genuine concern gave hope that sometime in the future industry would be alive again. Unemployment was high and the jobless were resorting to the inevitable bleak future of Hoover. Nevertheless Roosevelt swooped in and gave hope top them. His promise of never ending jobs rang in the unemployed ears like a favourite tune. A tune that hadn’t been heard in many years.

Finally he wanted to supply relief for the old, sick and unemployed. Their appalling circumstances were in need of a an overhaul. Roosevelt equipped them with courage in his policies and he seemed to be helping greatly. As the great man himself once said, “Men are not prisoners of fate, only prisoners of their own minds.” That fire in his belly made Roosevelt the conqueror of desolation, the hero of the Great Depression. Or was his fervour a facade? As the1930s entailed the answer is apparent.