New Deal

Question 1

AIMS OF THE NEW DEAL

Answer 1

• Roosevelt is elected in 1932 because he promised the American people a “New Deal.”
The aims of the New Deal are known as RRRR:
RESTORE, RELEIEF, RECOVERY & REFORM.
• Restore, Relief and Recovery would happen during the FIRST HUNDRED DAYS of his presidency in 1932-1933. This is known as the FIRST NEW DEAL.
• Reforming society would happen in 1935. This is known as the SECOND NEW DEAL.

Question 2

RESTORING CONFIDENCE

Answer 2

RESTORING CONFIDENCE
• Loss of confidence in banking system.
Roosevelt closed down all the banks in America, but gradually reopened 5,000 trustworthy banks.
• Loss of confidence in the American government after Hoover “do-nothing” Pres.
Roosevelt broadcast fireside chats- 60 million Americans listened every Sunday to Roosevelt explaining what he was doing and why he was doing it.

Question 3

RELIEF & RECOVERY: POVERTY

Answer 3

RELIEF & RECOVERY: POVERTY
FERA (Federal Emergency Relief Administration) met urgent needs of the poor. Gave states money to provide soup kitchens, nursery care and blankets to the poorest- 500$ million was spent in total.
HOLC (Home Owners Loan Corporation)- rescued around 20% of American mortgages. This meant many middle-class Americans wouldn’t lose their homes to the bank.

Question 4

RELIEF & RECOVERY: UNEMPLOYMENT

Answer 4

RELIEF & RECOVERY: UNEMPLOYMENT
NRA (National Recovery Administration)- forced fair wages, banned child labour and setting sensible levels of production. This meant an increase in spending without over-production so no slump. Over 2 million employers joined- marked with a blue eagle showing government approval.
PWA (Public Works Administration) government built schools, damns, bridges and airport. This meant it created millions of jobs in the short-term but would help American in the long-term too.
CCC (Civilian Conservation corps) gave unemployed young men low paid work in conservation (e.g., planting trees to stop erosion.) Helped around 2.5 million under 25s

Question 5

RELIEF & RECOVERY: FAMRERS

Answer 5

RELIEF & RECOVERY: FAMRERS
AAA (Agricultural Adjustment Administration) tried to steady food prices by setting quotas on farm production, and gave machinery to farmers to help with production. This meant farming would gradually recover, but machinery also meant more farm labourers out of work.

Question 6

REFORM: THE SECOND NEW DEAL, 1935

Answer 6

REFORM: THE SECOND NEW DEAL, 1935
SSA (Social Security Act) provided America’s first system of social welfare: it set up a national system of old-age pensions, it gave help to people with physical disabilities, it gave help to children in need and set unemployment insurance.
Wagner Act forced employers to allow trade unions to negotiate for better pay and workers protection
WPA (Works Project Administration) extended help to all unemployed beyond manual labour- to acting, the arts and office work.
NHA, (National Housing Act) 1937- provided loans to buy houses and reduced excessive rents
RA Resettlement Administration- later renamed the FSA (Farm Security Administration) helped those not helped by the AAA- it moved over 500,000 families to better quality land and housing. Built camps to provide decent living for migrant workers.

Question 7

ACHIEVMENTS

Answer 7

ACHIEVMENTS
Successfully reformed parts of society and provided relief to the poor, unemployed and farmers. The old Republican ideas of “rugged individualism” were replaced with care.
• Restored confidence
• Helped trade unions
• Created millions of jobs
• Improved the banking system
• Standards of living rose for many
• African Americans benefitted from some of the Alphabet Agencies
• Created the first social state in America

Question 8

CRITICISMS

Answer 8

CRITICISMS
• Some, like Huey Long, said the New Deal did not go far enough- businesses still had too much power.
• Others (like business leaders & Republicans) felt Roosevelt was interfering too much. The Supreme court and Republicans both believed some of the new measures were unconstitutional
• Took power away from local governments into Federal government
• USA recovered more slowly than European countries. Economic recovery was only possible because of the Second World War.
• Failed to challenge discrimination against African Americans and women.