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 ProblemSolution

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! COUNTRY IS IN CRISIS!

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 You must talk about FDR as he embodies and leads the New Deal

Solution is sub-divided into these areas: 1 NEW DEAL – 1 st 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theater sound truck tours the streets in December 1931 chiding citizens who, fearing impending financial failure, had withdrawn their deposits from local banks.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 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?