Topic 4 - 1930s Roosevelt's New Deal (Understanding)

Question 1

In what ways did Roosevelt hope his New Deal would ‘prime the pump’ and get America’s economy back on its feet?

Answer 1

New Deal agencies provide work for the unemployed → more Americans would have money to spend → more sales → fewer businesses would go bankrupt, and businesses’ profits would increase and demand would rise → business would need to employ more workers to increase production → more taxes for the government → more New Deal agencies could be set up

Question 2

Identify the 8 main policies/agencies introduced by Roosevelt in his first ‘Hundred Days’.

Answer 2

a. The Emergency Banking Act
b. The Federal Emergency Relief Administration
c. The Civilian Conservation Corps
d. The Agricultural Adjustment Administration
e. The National Industrial Recovery Act – set up the Public Works Administration and the National Recovery Administration
f. The Home Owners Loan Corporation
g. Tennessee Valley Authority
h. Fireside chats

Question 3

In what ways did dealing with the banking crisis in March 1933 aid the US economy?

Answer 3

a. Restored confidence in the banks → people stopped withdrawing their money → banks stopped collapsing → people stopped losing their savings → had money to spend
b. Restored confidence in the banks → people put their savings into banks → banks had money to invest / loan to businesses → businesses could expand and employ more people

Question 4

In what ways was the New Deal criticised in the 1930s?

Answer 4

a. Criticised for not doing enough to help those in need → political opponents suggested more radical schemes to change American society and help the poor
b. Republicans and businesses criticised Roosevelt for interfering too much → saw the New Deal as a threat to the traditional freedom of Americans to live without interference from government → claimed Roosevelt was steering the USA towards socialism / Communism
c. The New Deal cost a lot of money → many resented paying higher taxes to pay for employment schemes
d. Supreme Court declared the AAA and NRA unconstitutional as they took away the rights of individual states → had to stop their work and be replaced