On 4 March 1933, Franklin D. Roosevelt was inaugrated as the president of USA.
New Deal was a program of Mr. Roosevelt to restore the confidence of American society in a shattered economic condition.
The New Deal was divided into two
1. The first new deal(1933-1934)-> to save America and its capitalist economic system.
2. The second new deal(1935-1936)-> to change the society.
What did the first New Deal consist of?
#Psychological support:
#Practical support
-The Second New Deal-
Although Roosevelt restored hope and staved off the collapse of the banking system, the problem of unemployment was more difficult and at the start of 1934 there was still 11.3 million people out of work. some historians have said that failing to deal with unemployment was the biggest weakness of the New Deal.
With the 1936 presidential election on the horizon, the New Deal began to change direction. some historians have interpreted the change by saying there were two New Deals - the firs dealing with the immediate emergency of 1933-1934 and the second which emerged in 1936-1936, offering more radical, reforming policies:
-Successes-
- -Failures-
1. There was a new recession - the 'Roosevelt recession' in 1937.
2. Unemployment was not conquered by the New Deal.
3.Many of the jobs created by the New Deal were only temporary.
4.The New Deal was the most costly government programme in American History and some of its projects could be accused of wasting money.
New Deal was a program of Mr. Roosevelt to restore the confidence of American society in a shattered economic condition.
The New Deal was divided into two
1. The first new deal(1933-1934)-> to save America and its capitalist economic system.
2. The second new deal(1935-1936)-> to change the society.
What did the first New Deal consist of?
#Psychological support:
- Roosevelt skillfully used his inaugural address to reassure American people that"the only thing we have to fear is the fear itself-nameless, unreasoning, unjustified terror."
- Fireside Charts- in March 1933 about 60 million Americans gathered around their radios to be told in a warm tone-"I can assure you that it is safer to keep your money in a reopened bank than under the mattress".
- Stabilized the banking system-with the banking system in crisis, the president declared a nationwide bank holiday to allow time for people to regain their nerve. The emergency Banking Relief Bill brought all the banks under federal control, Roosevelt had given the banking system much needed time and space to avoid panic.
#Practical support
- The Tennessee Valley Authority (TVA)- responsible for flood control, building dams and constructing new towns.
- The National Recovery Administration- this agency negotiated with the major industries to create fair prices, wages and working hours.
- The Agricultural Adjustment Act (AAA)- aimed at reducing farm production and boosting farm prices.
- The Civilian Conservation Corps (CCC)- offered short-term work to young men on conservation projects.
- The Public Works Administration- constructed schools, hospital and other public buildings.
-The Second New Deal-
Although Roosevelt restored hope and staved off the collapse of the banking system, the problem of unemployment was more difficult and at the start of 1934 there was still 11.3 million people out of work. some historians have said that failing to deal with unemployment was the biggest weakness of the New Deal.
With the 1936 presidential election on the horizon, the New Deal began to change direction. some historians have interpreted the change by saying there were two New Deals - the firs dealing with the immediate emergency of 1933-1934 and the second which emerged in 1936-1936, offering more radical, reforming policies:
- The Works Progress Administration - this agency employed people to build schools, hospitals and other public buildings.
- The Rural Electrification Administration - this agency aimed to bring electricity to America's farms.
- The National Labor Relations Act(Wagner act) - this act aimed to improve relations between workers and employers, especially as 1934 had seen a series of violent industrial disputes.
-Successes-
- Roosevelt restored confidence in the American people.
- Millions of people were given work in government projects
- A lot of valuable work was carried out by the in building schools, roads and hospitals.
- Roosevelt rescued the banking system from collapse and saved capitalism.
- -Failures-
1. There was a new recession - the 'Roosevelt recession' in 1937.
2. Unemployment was not conquered by the New Deal.
3.Many of the jobs created by the New Deal were only temporary.
4.The New Deal was the most costly government programme in American History and some of its projects could be accused of wasting money.