(3a) The New Deal and the economy Flashcards
what do many people argue the new deal fail to achieve
Many have argued that the New Deal failed to achieve its aim of stimulating the economy.
why do Many argue that the New Deal failed to achieve its aim of stimulating the economy?
The national total of personal income: 1929 $86 billion; 1929 $73 billion
Average wages: 1929 $25.03 a week; 1939 $23.86 a week
what do many people believe led to economic recovery as opposed to the new deal
Many agree that the real reason for economic recovery was the demand for war materials and munitions from the nations that entered WW2 in 1939.
1929: unemployment
never rose above 3.2%
1932 national wage bill
only 40% of 1929 figure
1933 unemployment
rose to 25%
1936 unemployment
17%
1937: During the second New Dea
14%
1938: Spending cuts led to Roosevelt Recession, around
19%
1939: End of the New Deal and start of war time economy
17.2%
1940: War time economy
14.6%
1944: Unemployment at
1.2%
significance of alphabet agencies
For the first time ever the federal government was actively engaged at bringing help and assistance to the unemployed via alphabet agencies such as the PWA and WPA.
These works programmes were created in the hope that these alphabet agencies would ‘kickstart’ the economy.
limitations of alphabet agencies
In reality, the alphabet agencies provided short term employment. Many Americans at the end of their time working for the agencies returned to being in part-time work, or at worst, unemployed.
how did the new deal ensure future success of the us economy
the New Deal did prevent the total economic collapse of America and lay the economic foundations that supported the rapid economic growth in the Second World War which was more sustained.
III The impact of the New Deal on national infrastructure
Although the New Deal did not lead to full economic recovery, it did transform national infrastructure - and the alphabet agencies were a significant part of that.
By the end of the New Deal, the road network of America had been transformed as had the school system and hospital provision.
impact of the WPA
WPA: 1935 - 1943 workers built 2,500 hospitals, 5,900 schools, 350 airports, 570,000 mile of road and 8,000 parks.
TVA
The TVA of 1933 built dams that provided power both domestic and industrial use, transforming and modernising the lives of many Americans, and bringing electricity to many in the Tennessee Valley for the first time.
impact of new industries on farms
New industries were also encouraged to locate to these rural areas and by 1941, 40% of American farmers had access to electricity increasing to 90% by 1950
