1920s America: The New Deal badge (The 'Alphabet' agencies, FERA,…
1920s America: The New Deal
After the wall street crash in 1929, America plunged into a severe economic crisis
The 1930's would be reffered as the great depression
Industries and businesses faced a low demand for their products as people tried to save what little money they had.
Banks had collapsed as loan repayments went unpaid and unemployment was at unpredicible levels.
The laissez-faire politics of the Republican Party that had helped create the economic boom of the 1920s no longer seemed relevant
"I pledge you, I pledge myself, to a new deal for the American people" -
Franklin D. Roosevelt
What was Roosevelt trying to achieve: The 3 basic aims
Help the victims of the Depression. Millions of ordinary Americans faced
Encourage economic recovery. The depression was a disaster for America. Roosevelt knew he had to take action to encourage recovery, to get the nation back to work.
Reform the economic system. The whole economic system would have to be altered so that there would never be a depression again
The 'Alphabet' agencies, FERA, AAA, NRA, PWA, CCC, TVA
These were some of the best aspects of the new deal
Federal Emergency Relief Administration
- These helped the poor with giving them clothes and setting up soup kitchens for the poor
Agricultural Adjustment Act
- These helped the farmers by controlling farm production and stabalizing prices. It was an attempt to end the over-production and failing agricultal prices
National Recovery Administration
- These tried to help industry and factory workers by increasing wages and improving hours and conditions.
Public Works Administration
- This created jobs by paying unemployed people to build schools, bridges and dams. This was replaced by the Works Progress Administration in 1935
Civilian Conservation Corps
- Similar to the PWA, this department provided jobs to large numbers of young men in conservation schemes in the countryside.
Tennessee Valley Authority
- This scheme brought hydro-electric power to seven states in the Tennessee Valley, one of the worst affected areas of the country.
Did the new deal work?
Unemployment went from 14 million people to under 8 million by 1937, this was due to the alphabet agencies. However when he introduced government spending again it dropped to 10 million, but in 1939 this dropped dramatically due to the lead up to WW2
Relief from poverty:
In its effort to help the poor and the destitute, the new deal had many successes. The many relief schemes provided jobs and support for millions of people
The banking system:
American banks were regulated and properly vetted. This helped restore public confidence in them and helped place them on a more secure and stable footing.
Under the new deal, the country gained from public work projects, they gained dams, roads, airfields, schools, bridges, reforestation schemes, and similar projects.
The new deal restored the confidence of the American people
"The only thing we have to fear is fear itself" -
Franklin D. Roosevelt