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The New Deal, Positive and negative factors:, Was successful because it…
The New Deal
Relief
Relieve extreme poverty, feed the starving and stop people losing their homes or farms
Helping the farmers
The farm Credit Administration (FCA) made loans to a fifth of all farmers so that they would lose their farms
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negative factors:
- less production had to occur so there where less job possibilities for farmers as their products where not going to be sold.
- Farmers where replaced with machinery so there where less job possibilities
- Lot's of money used for the people in need
positive factors:
- The Federal Emergency Relief Administration (FERA) helped the homeless, penniless and people on the brink of starvation.
- With less production people would buy the exact amounts to make an equilibrium on the economy.
The Second New Deal:
The Resettlement Administration, 1935 and the Farm Security, 1937
The AAA of 1933 had helped farm owners but not farmers or sharecroppers. In 1935, Roosevelt moved 500,000 families to better lands and to resettle them in new houses. In 1937, the RA was replaced by the Farm Security Administration, which gave loans to sharecroppers and tenant farmers to buy their own land.
Reform
Make the USA a better place for ordinary people by bringing in measures such as unemployment insurance and old-age pensions, and help for the sick, disabled and needy
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Negative factors:
- The jobs they offered payed very low for the situation in which the mayority of Americans were. - As they recieved loaned money, it meant that in a near future they would need to have the ability to pay back.
Positive Factors:
-The Civilian Conservation Corps (CCC) offered jobs to many unemployed, and also cheap labor people learned skills that could help them in their future jobs. It became one of the best achievements of the new deal.
-The Home Owners Loan Corporation loaned money to over a million people to prevent them from losing their homes. This gives them at least have something to help them survive.
-The Civilian Works Administration was designed to give as many jobs as they could, many people started having things to do, although it was not necessarily the best work, it was better than nothing.
The Second New Deal
The Social Security Act, 1935
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Helped farmer's income double, however it did not help the tenants.
Although it was a great/ impressive act, it ended up flooding thousands of hectares, leaving some people homeless
the chief administrator failed to induce cooperation and the administration was ruled as unconstitutional. Their success was short-lived.