The New Deal
(a) Explain the main features of the New Deal
The first act that Roosevelt implemented was the Emergency Banking Act. This was approved to restore faith in the banks, so that people would trust banks in the future and would not be hesitant to have bank accounts. The act was passed after the banks failed to open and Roosevelt realised that soon people would have no money to spend if they did not reopen quickly. However if all the banks opened they might collapse, so all banks were ordered to close for four days and only the ones with secure finances were allowed to reopen, with the help of government grants.
Roosevelt also set up the Civilian Conservation Corps (CCC), this organisation gave work to the unemployed by paying them for manual labour. The CCC planted many trees and fought forest fires. The president then set up FERA (Federal Emergency Relief Administration) whose job it was to give grants to local government to help the unemployed.
The National Industrial Recovery Act was then passed, they set up both the NRA and PWA. The National Recovery Administration was introduced to agree an employement code with each industry. It was set up to eradicate child labour and low pay. The Public Works Administr
The AAA or Agricultural Adjustment Administration was set up to help farmers, this was achieved by slaughtering piglets, and ploughing crops into the ground, all this meant that farmers would get a better price in the future for their food. Even though the New Deal did not achieve a fair society it did create a fairer one, it also exposed the existing shortcomings of American society. The introduction of NRA meant that employers resented Roosevelt even more as they had to comply to government guidelines with higher wages and shorter hours. If he was seen to be trying to do something about the economy he would win the hearts of the American people and therefore hopefully another term in office. If Hoover had won the 1932 election the depression would have hit America extremely hard to the point where it may not have been able to fight in WWII or become the world power it is today. The New Deal was also introduced to help the farmers by slaughtering the surplus millions of piglets and ordering crops to be destroyed to raise the price of food and give farmers better prices in the future. Nor did Roosevelt solve the depression but the New Deal did manage to reduce the effects of the worldwide depression. It was the New Deal in his eyes that could feed the starving and give jobs to the unemployed, who would all help improve America and make it a better place to live and a more stable economic climate. In 1938 there were 10 million Americans unemployed and it was not Roosevelt that solved this, but Hitler. There were millions of men and women sitting idle and instead of this they could be helping the economy and America. After winning the Presidential Elections in 1932 he sympathised with the poor and unemployed and wanted to do something for them. After the New Deal was introduced the number of days lost in America due to strikes rose dramatically. This would obviously cut their profits and productivity. The New Deal did not drastically change the conditions of the poor, it only just managed to put food in their mouths, and they were not much better off than before the depression. Roosevelt truly believed that the New Deal would help the people of America especially the poor and unemployed.