Was the NEw Deal a success?

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  • Created by: Heather
  • Created on: 06-04-14 17:01
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  • How far was the New Deal successful in ending the Depression in the USA?
    • Effectiveness
      • Alphabet Agencies
        • TVA
          • Improve the economy of seven of the poorest states and made the area richer,
          • It provided Hydroelectricity to areas where there was no electricity,
          • Provided leisure and tourism due to the dams,
          • Farmers used the dams and water during the 'Dust Bowl' which caused a drought,
        • 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
          • Gave jobs to approximately 2 million people,
          • It built 12,000 playgrounds, 8,000 schools and 1,000 airport landing sites,
        • PWA
          • Gave $3.3 billion to 'prime the pump' of the economy,
          • 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,
        • SSA
          • Provided the idea of creating pensions for the elderly and unemployment benefits so they can spend money.
      • The New Deal created millions of jobs,
      • It restored the faith of the American people in the government,
      • The New deal handled billions od dollars but there were no corruption scandals,
        • CWA leader, Hopkins, never earned more thatn his salary of $15,000
        • Ickes, Secretary of Interior tapped the phones of his own employees to ensure there was no corruption,
      • He employed black Americans and campaigned against racial prejudice,
      • Around 200,000 black Americans gained benefits from the CCC and other agencies,
      • The Indian Reorganisation Act 1934 provided money to native Americans to bu y and improve land,
      • The Indian Reservation Act 19 helped Native Americans to preserve and practise their traditions and laws,
    • Limitations
      • In 1937, Roosevelt is worried a the large amounts spent on the New Deal so he cuts the budget,
      • Then, unemployment increases from 14.3% to 19% and production increases in 1938,
      • He increases the budget again so it shows America isn't self-financing or self-sufficient by 1938
      • The US economy took longer to recover than most other European countries,
      • It never solved the underlying economic problems,
      • Confidence remained low in the economy as Americans only spent 75% of what they had in 1929
      • there were 6 million unemployed in 1941 and ir was only USA's entry into WW2 that ended unemployment,
      • New Deal agencies discriminated against blacks and they got no work or received lower wages,
      • Roosevelt failed to pass laws against the lynching of blacks,
      • Many middle class voters lost some confidence in him after the 1937 recession which damaged Roosevelt's reputation,
      • The New Deal undermined local Governments
        • Unions were treated with suspicion and companies such as Ford employed their own polic force,
      • He is no longer united behind his New Deals,
      • Many accused the New Deal of being Communists and undermining American values,
      • 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,
      • Native Americans remained a poor and excluded section of society,


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