Effectiveness Of The New Deal: Overall Flashcards
Why was the New Deal successful?
FDR’s leadership unified African Americans, unions, immigrants and poor voters under the Democratic Party
Offers relief parties like PWA and WPA- help through depression
Reform to stock market (SEC) , banking (FDIC), unions (Wagner Act, FLPC), elderly (Social security Act)
Government used deficit spending + created welfare programs for those in need
GDP (Gross domestic product) in FDRs first year was one of the fastest periods of growth in US history
Give some statistics that prove that the new deal was a success
(GPD increase, consumer goods, private investment)
GPD increased by 60% from $55 billion to $85 billion
Consumer goods rose by 40%
Private investment industry increased five-fold in just six years
Why was the new deal not successful?
Did not lead to recovery in American economy
1938, nearly 10 million unemployed
Wealth unevenly divided
too much reform- economy did not recover, alphabet agencies had unclear aims, aims overlapping (competition)
GDP increased but was not sustained, downturn in 1937-38
Did not rescue USA from depression, WW2 did- it reduced unemployment below 1 million and solved Americas economic problems
