Download New deal revision

How effective was the new deal?
In this essay you need to identify the
problems that the New Deal tackled
and evaluate to what extent they were
resolved
Problem
Solution
Problems
• Loss of confidence in the government (due to
Hoover and Coolidge’s inaction over
monitoring/Hoover’s inadequate response to
crisis and laissez-faire policies)
• Collapsed economy (national banking system
crashed which has knock on effects with
commerce and trade)
• Widespread poverty and unemployment
• COUNTRY IS IN CRISIS!
You must talk
about FDR as he
embodies and
leads the New Deal
Solution
• First tackle immediate relief and recovery then
embark on a long-term agenda of reform.
• NEW DEAL – a system of welfare policies that
take a more interventionist approach by the state
towards public welfare
• PRESIDENTIAL POLICY – shift towards
interventionism, taking responsibility to restore a
nations confidence
• 3 R’s – must recover economy, reform society,
relieve the unemployment/poverty
Solution is sub-divided into these
areas:
1
• NEW DEAL – 1st 100 days
• Short term (relief)
2
• SECOND NEW DEAL
• Long term approach (Reform)
3
• INCREASED FEDERAL POWER (Reform)
• Overall
4
• ECONOMIC RELIEF AND RECOVERY (Relief and recovery)
• Overall
5
• CONFIDENCE BUILDING (Government and President) Reform
• Overall
Evidence of the loss of confidence:
• Have faith. Instead
of its usual movie
advertisement, a
Boston theater sound
truck tours the
streets in December
1931 chiding citizens
who, fearing
impending financial
failure, had
withdrawn their
deposits from local
banks.
1 First New Deal
• Alphabet Agencies - short term relief of
poverty and recovery of the collapsed
economy e.g. FERA, TVA, PWA, CCC, AAA
• Economy Act – Balance the budget
• Government reform – cut state salaries by
15%
• End prohibition
Task – what’s the argument here?
Confidence building
It’s important
because:
Loss of
confidence led
to panic buying.
Loss of
confidence in
the government
decreased
national morale.
2. Second New Deal 1935-37
• Long term planning – improve living and working
conditions
• National Labour Relations Act 1935 “Wagner Act”
• Banking Act – Federal Bank Insurance Corporation that
insures deposits of up to $5,000 and then amended to
$10,000
• WPA – Public works established to employ men and
women, 3 million employed
• Electrification 1936 – rural areas
• Social Security Act 1935 – state pension for old,
financial support for widows and disabled children
Task – what’s the argument here?
3. INCREASED FEDERAL POWER
• Government now intervenes – how do people
respond to this change? Challenged by the
Supreme Court
• State governments are unhappy with checks
on their power and decision making e.g.
Liberty League formed in opposition
• Government as regulator – business,
agriculture and workers
Task – what’s the argument here?
4. ECONOMIC RELIEF AND RECOVERY
• Fastest growth of GDP 1933 $55billion – 1939
$85 billion (60% rise!) but followed by
downturn in 1937– questionable success
• WWII boosted industries
• Unemployment was never lower than 14%
Task – what’s the argument here?
5. CONFIDENCE BUILDING
• Emergency Banking Act - FDR introduced bank
checks. Lots of smaller banks closed down.
• Money regained
• Roosevelt’s role in Fireside chats
• “Only thing we have to fear is fear itself”
Task – what’s the argument here?
CONCLUSION
• Have the 3 R’s been achieved? This is not a yes
or no question!!!
For example,
• On the one hand ........ Has been achieved
• One the other hand...... This was arguably still
a problem
• What were the criticisms of the New Deal?