Economic Impact on the New Deal (T3) Flashcards
How did the New Deal affect unemployment?
1929 (after the crash) - 3.2%, around 4 billion
1933 (hoover) - 18 million
1939 - 17.2%, 9 million
How did the New Deal affect National Income?
1929 - $86 billion
1939 - $73 billion, despite population increase of 9 million
How did the New Deal affect Average Incomes?
1929 - $25.03 per week
1939 - $23.86 per week
How did the New Deal affect The Roosevelt Recession?
Between 1937-38 the rate of economic decline was sharper than that of late 1929.
1937-38:
- 3.5 million lost their jobs
- National income fell by 13%
- unemployment was rising to 19%
- It was said that 66% of the gains made by the New Deal were lost.
How did the New Deal affect causes of the Roosevelt Recession?
Many see FDR as being partially responsible for the recession due to cutting federal expenditure sharply. By 1933, America continued to be the most severely affected by the Depression.
In order to maintain a balanced budget, cuts of $66 million were made to Federal spending. 1.8 million jobs were lost.
Most historians agree that unemployment was only involved due to war-time production and spending during 1938.
How did the New Deal affect Government Aid?
In 1931, 1 in 5 Americans were in receipt of some form of government relief and 3/4 of those were in receipt of government aid support had been out since 1933.
Many Americans had left the employment of Alphabet Agencies and returned to employment or part-time work.
How did the New Deal affect National Infrastructure?
The WPA: between 1935 and 1943 workers built 2,500 hospitals, 5,900 schools, 350 airports, 570,000 miles of road and 8,000 parks.
The CCC was heavily involved in the development of National State Parks, roads, planting trees and building for tourist facilities.
How did the New Deal have an impact on rural infrastructure?
TVA building dams, providing hydroelectric power to the seven poorest states of which the Tennessee River flows through, transforming it.
By 1941, 40% of American farmers has access to electricity, increasing to 90% by 1950.
Although overall acreage under cultivation did not really increase, by 1939 was slight increase to 1.5 billion acres.
How did the New Deal impact on relief?
Role of Federal government to help the most in need was transformed.
FERA and WPA set up to help millions
Relief - was inadequate to meet the needs of of the sustainable depression.
BUT for the first time Federal government were given direct relief.
Led to state and local governments taking greater roles in helping people too.
How did the New Deal impact upon relied: welfare provision?
Before 1930: State spent barely anything on relief.
1930: 9 million in total
1940: $479 million in total
A further $480 million spent on unemployment benefits.
Ths direct relief meant that people felt looked after by their government, and began to see the role of their president as someone who cared for them.
Led to in turn to an increased turnover of president elections.
How did the New Deal impact upon recovery?
Economic recovery was sluggish - due to the contradictions of the New Deal.
FDR’s belief in a balanced budget meant he was more reluctant to spend the excessive amounts needed to
