How far was the New Deal successful in ending the Depression in the USA?
- Created by: nasifahuddin04
- Created on: 23-04-20 11:12
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- How far was the New Deal successful in ending the Depression in the USA?
- EFFECTIVENESS
- He employed black Americans and campaigned against racial prejudice,
- The Indian Reorganisation Act 1934 provided money to native Americans to bu y and improve land,
- The New Deal created millions of jobs,
- Around 200,000 black Americans gained benefits from the CCC and other agencies,
- The Indian Reservation Act 19 helped Native Americans to preserve and practise their traditions and laws,
- It restored the faith of the American people in the government,
- The New deal handled billions of dollars but there were no corruption scandals,
- CWA leader, Hopkins, never earned more than his salary of $15,000
- Ickes, Secretary of Interior tapped the phones of his own employees to ensure there was no corruption,
- Alphabet Agencies
- TVA
- Farmers used the dams and water during the 'Dust Bowl' which caused a drought,
- Provided leisure and tourism due to the dams,
- Improve the economy of seven of the poorest states and made the area richer,
- It provided Hydroelectricity to areas where there was no electricity,
- EBA
- Guaranteed depositors money of up to $2,500 so the economy recovers,
- He stops banks speculating on the stock market and separates saving accounts with standard accounts,
- Only let financially stable banks to open and established the financial system by restoring confidence,
- WPA
- It built 12,000 playgrounds, 8,000 schools and 1,000 airport landing sites,
- Gave jobs to approximately 2 million people,
- PWA
- It used public work schemes to stimulate demands for materials such as concrete which lead to increased employment,
- it built 50,000 miles of road and 13,000 schools and dams,
- Provided hundred of thousands of people with jobs,
- Gave $3.3 billion to 'prime the pump' of the economy,
- SSA
- Provided the idea of creating pensions for the elderly and unemployment benefits so they can spend money.
- TVA
- LIMITATIONS
- The US economy took longer to recover than most other European countries,
- Many middle class voters lost some confidence in him after the 1937 recession which damaged Roosevelt's reputation,
- He is no longer united behind his New Deals,
- Many accused the New Deal of being Communists and undermining American values,
- Roosevelt failed to pass laws against the lynching of blacks,
- there were 6 million unemployed in 1941 and ir was only USA's entry into WW2 that ended unemployment,
- Confidence remained low in the economy as Americans only spent 75% of what they had in 1929
- In 1937, Roosevelt is worried a the large amounts spent on the New Deal so he cuts the budget,
- Native Americans remained a poor and excluded section of society,
- Then, unemployment increases from 14.3% to 19% and production increases in 1938,
- New Deal agencies discriminated against blacks and they got no work or received lower wages,
- He increases the budget again so it shows America isn't self-financing or self-sufficient by 1938
- It never solved the underlying economic problems,
- The New Deal undermined local Governments
- Unions were treated with suspicion and companies such as Ford employed their own police force,
- It didn't aim to help women- there were only 8,000 women involved in the CCC
- Local Governments tried to avoid paying out social security payments by creating special qualifications,
- EFFECTIVENESS
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