The New Deal

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The New Deal

a) In 1933, the new president of America, Franklin D Roosevelt,

introduced The New Deal. He did this because of America's economic

depression at the time.

For example, many banks went bankrupt in the Wall Street Crash. This

happened because, during the economic many people got involved in the

stock market, especially in speculation. This was where you would buy

lots of stocks with a loan, then way for them to rise slightly, and

sell them off again, making a quick and easy profit. Many banks got

involved in speculation, but people started to lose faith in the stock

market, so everyone started to sell their shares. This meant that

there were much more sellers than buyers which meant the whole system

crashed. This caused banks to go bankrupt, along with everyone's money

that were in those banks. This caused people to withdraw their savings

from banks, causing even more to close down.

Also there was the weakness of the US economy. After the boom, there

was a strain on the consumer goods being bought, and other such

things.

The companies that sold cars and other luxuries were now producing

more than they could sell, and the majority of the American population

could not afford to buy them.

Companies used huge amounts of advertising, but there was no demand

for their products, as people's wages were still low, and prices were

still high.

Normally, America would have exported its surplus to Europe, but

because American prices were so high, people in Europe could not

afford them either. Also, Europe had put up its own trade tariffs to

protect its companies from the American companies.

The weaknesses beg...

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...le to do, and get paid for.

The black Americans had been hit very hard by the depression, but, The

New Deal CCC helped the black Americans gain benefits and other

Agencies helped them improve the quality of life by improving housing

conditions from slums to proper houses.

I think that on the whole, The New Deal was actually a good idea, and

a short-term success. This is as, at the time, America was in such a

state, that something had to be done. This meant that at the time

Roosevelt solved so many problems that Hoover was just unable to deal

with. This means that though The New Deal may not have stayed a

success, it started a success as was much better than not doing

anything and leaving America in a huge depression. Also, at the time

there was probably no better thing that anybody else could have come

up with.

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