banking - to what extent was the new deal effective in solving americas economic problems

Question 1

KU - what was the intention of the Emergancy banking act (and when was it introduced)

Answer 1

The emergancy banking act 1933, declared a 4 day bank holiday during which banks would be inspected to see if they had funds - those that didnt were shut down

Question 2

KU - what did the 4 day bank holiday also allow for?

Answer 2

roosevelt to use the time to persuade the public to start leaving their money in banks again - he did this through fireside chats

Question 3

A - therefor the new deal was effctive in solving americas economic problems in the 30’s as..

Answer 3

roosevelt led the proccess of spending federal money to ‘prime the pump’ and get people working/earning. wages earnt could then be spent in other areas of the economy and the cycle would continue this way

Question 4

A+ - however, the new deal was not effective in solving americas economic problems in the 1930’s as…

Answer 4

whilst the emergancy banking act ensured banks had enough money to pay people, many believed gov should have gone further and banks should have bbeen nationalised. some also felt badly managed banks should be allowed to colapse

Question 5

E - upon evaluation, the new deal was effective in solving americas economic problems in the 30’s because..

Answer 5

alongside roosevelts trustworthy and likable personality there war a rise in GDP thanks to the way the new deal tackled banks.
GDP rose from $55 bil in 1933 - $85 bil in 1939