4. How successful was the New Deal? a.What was the New Deal which was introduced in 1933? b.How far did the character of the New Deal change after 1933? c.Why did the New Deal encounter opposition? d.Was the New Deal a success?

Introduction: Roosevelt promised a ‘New Deal’, a programme of laws which gave the government the central role in dealing with the Depression By spending public money on a large scale, he tried to create jobs and help the economy recover

Government spending money Jobs for workers Money to spend Increased demand for goods from factories

Pattern of unemployment election First New Deal election Second New Deal Outbreak of war in Europe USA joins WWII

Roosevelt becomes president: Roosevelt’s inauguration as president took place on 4 March That day, banks throughout America had failed to open Roosevelt’s inauguration speech on the radio reassured Americans who listened in The speech was a summary of the ‘New Deal’ which would be brought in within his first ‘Hundred Days’ in power

The ‘fireside chats: Roosevelt used the radio as his way of communicating with the country His ‘fireside chats’ kept the people in touch with what the government was doing and created a sense of unity

The ‘alphabet agencies’: The Hundred Days saw the creation of many organisations set up to carry out the New Deal with acronyms such as AAA, TVA, CCC etc These became known as the ‘alphabet agencies’

Which areas in society needed help? Banks and stock market Farmers Unemployed IndustryHome Owners Poverty stricken land

Helping the banks: The Emergency Banking Act forced all banks to stay closed for four days Weak banks were closed permanently, the healthier ones were given government grants so the public would regain confidence in them – this saved the banking system The Securities Act and Securities and Exchange Commission were designed to control the stock exchange

Helping the farmers: Roosevelt paid farmers to not overproduce The Agricultural Adjustment Act helped government control prices by destroying surplus produce and compensating farmers

Helping the unemployed: The Civilian Conservation Corps (CCC) was set up to provide employment for young men on environmental projects The Federal Emergency Relief Administration (FERA) was set up to give grants to state and local governments to help them give relief to the unemployed

Helping industry: The National Industrial Recovery Act set up two agencies: - The National Recovery Administration (NRA) tried to agree a code with industry. It would mean fair wages and conditions for workers in return for fair prices for goods - The Public Works Administration (PWA) aimed to use skilled industrial workers on large public construction projects

Helping home- owners: The Home- Owners Loan Corporation (HOLC) gave low interest loans to people struggling to pay their mortgages due to temporary unemployment

Help to the depressed areas: The Tennessee Valley Authority (TVA) was set up to regenerate that area by encouraging industry and helping agriculture

The end of prohibition: The 21 st Amendment to the Constitution was passed at the end of 1933 which legalised the manufacture and sale of alcohol again

lphabet gencies

How far did the Character of the New Deal change after 1933? The First New Deal was all about Economic recovery. The Second New Deal was about making sure the USA was fairer society for all

The second New Deal FDR faced another presidential election in The Second New Deal was starting to work by this time, so the Democrats were feeling quite confident. FDR promised America that he would continue the New Deal if re-elected. In his pre-election speeches, he used the phrase “we have only just begun to fight.” The Republicans, led by Alf Landon, wanted to cut taxes and scrap the New Deal. The result was the biggest landslide victory in nearly a hundred years for FDR and the Democratic Party. Despite this huge victory, FDR still had the problem of the Supreme Court. The First New Deal had been declared illegal; he did not want the same thing to happen with the Second New Deal.

Continuing to helping industry and unemployment: Works Progress Administration Replaced the PWA. Extended the range of work provided, from building work to the Federal Theatre project It gave work to unemployed workers and writers Wagner Act 1935 Roosevelt tried again to force employers recognise trade unions again after the NRA had been declared unconstitutional Roosevelt managed to get it passed by threatening to add more members onto the Supreme Court

Helping the Elderly Social Security Act 1935 One major change to the lives of Americans came through the introduction of social security. Many old people were suffering the effects of the Depression as they were too old to work. The Social Security Act of 1935 provided people with an income from the government after they retired. The money came directly from the pay roll of employees. Social security encouraged old people in work to retire, thus opening up jobs for younger people. Social Security later included unemployment benefits, support for disabled people and children from poor families.

Why did the New Deal encounter problems? Huey Long fact file Governor, then senator of Louisiana Came to power through bribery and intimidation Once in power helped the poor Taxed big corporations and businesses and used the money to build roads, schools and hospitals Employed African Americans on the same terms as whites and clashed with the KKK Share our Wealth Scheme – All personal fortunes reduced to $3million Proposed pensions for all over 60 including free washing machines and radios Huey had many friends and enemies Roosevelt regarded him as one of the two most dangerous men in the USA until his assassination in 1935

Why did the New Deal encounter problems? Dr Francis Townsend fact file Created Townsend clubs to campaign for a pension of $200 per month for people over 60, provided they spent it that month He hoped this would help stimulate the economy Father Coughlin fact file Used his own radio programme to attack Roosevelt Set up the National Union for Social Justice which had a large membership By 1940s the movement had faded in importance

Why did the New Deal encounter problems?

The Supreme Court disliked most of the New Deal laws. The Supreme Court had nine judges. These judges were all quite old – one was in his 80s! They were very slow and had a huge backlog of cases to work through. FDR decided to put through the Judicial Reform Act. This law would allow him to add more judges to the Supreme Court. Chief Justice Charles Evans Hughes The judges already in the Supreme Court were Republicans. This meant that they usually voted against aspects of the New Deal. They thought it was too radical and was a burden on the tax payers. So, despite winning the election, the Democrats had many of their policies blocked by Republicans. FDR needed to place more Democrats in the court. Why did the New Deal encounter problems? The problem of the Supreme Court

The NRA introduced codes which improved workers’ rights and pay. The minimum wage encouraged racist employers to employ white employees. How successful was the New Deal? Sharecroppers and farm labourers suffered as a direct result of the AAA. Alphabet Agencies provided jobs, but only for the short term. The AAA helped farmers increase the price of their produce. By 1936, unemployment had fallen from 15 million to 8 million.

How successful was the New Deal?