How successful was FDR in bringing about economic recovery between 1933 and 1941?

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How successful was FDR in bringing about economic recovery between 1933 and 1941?

Advantages

  • Emergency Banking Act - 1933, rescued the banking system and regulated banks and credit (in response to bull market of the 20s) Insured bank deposits of up to £5,000
  • Took USA off of the gold standard - allowing for greater federal control of the economy. It worked and allowed for a stable financial market
  • PWA and Civilian Conservation Corps provided jobs, former through paying unemployed people to build schools, dams and buildings, latter in agriculture industry. Helped to reduce unemployment and boost economy
  • Unemployment did statistically go down. 25% unemployed in 1933, 17% by 1929 and 9% by 1941.
  • Fireside chats, raised hope and gave morale
  • farmers and homeowners boosted by AAA, supported their mortgage repayments

Disadvantages

  • Unemployment still remained high. In 1934, 22 million still unemployed. Wasn't an immediate boost.
  • Second wave of depression in 1937 after Roosevelt cut spending on public work's projects, such PWA and NIRA, as he believed it had been sorted. Unemployment shot back up
  • Cut defecit spending in 1937 also, which resulted in more business failures and heightened second wave of depression
  • Unemployment didn't actually disappear until after WW2 had begun, leading some to feel this was in fact the main reason.
  • Spending confidence did reach 1920s levels, so it wasn't exactly restored (although if it had been, would have all turned to **** once more so it was probably for the best)
  • CCC and other job-creating schemes were criticised for being too short-term and temporary, were not long-term soloutions and so 1937 depression almost inevitable.

Evaluation

Wasn't all entirely successful but it was never going to be after Hoover had left him in such a dire situation. Did what he could and definitely did reduce unemployment and make essential steps towards economic recovery. Well don Frank.

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