the new deal was a success essay

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• Was the New Deal a Success?

To answer the question, ‘was the New Deal a success?’ we first have to define ‘success’. For Franklin D Roosevelt (FDR) in 1933, success meant working towards relief and recovery.

However, over time the idea of success evolved. By 1936 many hoped that the New Deal could provide solutions to a huge range of social, political and economic problems. With such high expectations, the New Deal was destined to be the subject of both praise and criticism.

FDR’s First Hundred Days were a success in many ways. As Roosevelt said in 1933: “All we have to fear is fear itself.”

Through his ‘fireside chats’ he managed to restore confidence in the banks - a vital element of recovery. Roosevelt took on the role of commander in chief during wartime by working quickly and confidently. On his first night in office he directed Treasurer William Woodin to draft an emergency banking bill. He then halted transactions in gold and proclaimed a national bank holiday. This fast and assertive action was welcomed by the public and proved Roosevelt’s success as a leader.

The New Deal was also effective in offering relief to the poor. Relief schemes, such as the CWA and WPA, provided jobs and support for millions of Americans.

However, the New Deal was less successful in terms of recovery. The figures below show the slow America’s slow recovery.

America's Gross National Product 1928 to 1939:

Amount of consumer goods brought 1928 to 1939:, private investment in industry:.

These figures show that FDR was not able to return the American economy to 1929 levels. However, considering the brevity of the depression this would have been virtually impossible anyway. Moreover, the figures do show a marked improvement in the economy in 1939, compared to 1933.

The New Deal is often criticised for not actually ending the Great Depression . Recovery was painfully slow and throughout the decade unemployment remained high.

Number Unemployed in America:

Those who criticise the New Deal claim that it never laid the foundations to end unemployment. Although “Alphabet” Agencies, such as the Civilian Corps, put many Americans to work, they did not offer a long-term solution. In 1938 unemployment increased again to over 10 million. It only began to fall steeply again in 1939 when the US began to build up its armaments in case of war.

Economists who attacked the New Deal claimed that all the acts introduced by the New Deal were short-term policies and that there was no long term planning for America's future.

But despite its economic weaknesses, the New Deal successfully restored the confidence of the American people. Through the New Deal, Roosevelt changed the role of government forever.

See also: USA 1919

MLA Citation/Reference

"Was the New Deal a Success?". HistoryLearning.com. 2024. Web.

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History resources, stories and news. Author: Dan Moorhouse

The New Deal: Was it a success?

How successful was the new deal.

The New Deal changed many aspects of government, the economy and the relationship between Industry and the state. The policies within the New Deal were aimed at tackling the Great Depression, by reducing unemployment and raising investment in industry and the economy. It’s success, or otherwise, can be measured against a variety of criteria. FDR’s New Deal has drawn both criticism and praise, making an evaluation of the policies quite demanding.

There has been much debate about whether the New Deal was a success. At the time Roosevelt’s policies attracted a lot of opposition and criticism.The Republicans thought the New Deal was too costly and a waste of tax payers money. Huey Long and his supporters thought the New Deal did not do enough for the poor and wanted higher taxes on the rich and a massive redistribution of wealth. Father Coughlin opposed the New Deal and wanted the USA to adopt a fascist type government. Some people opposed the New Deal because they believed it threatened the Constitution. The Republican dominated Supreme Court declared parts of the New Deal (AAA and NIRA) unconstitutional. Business leaders opposed government interference and the new rights given to workers and unions. Black Americans complained that the New Deal did not do enough to end discrimination. There were 15 million unemployed when Roosevelt became President in 1932, by 1939 there were still around 10 million. Many historians believe this shows that the New Deal did not end the depression. However, it gave people confidence and hope that things could get better.

• The Emergency Banking Act made the financial system more open and honest and helped restore confidence.

• Agencies such as the Home Owners Loan Corporation provided immediate help for people who were facing homelessness.

• The Agricultural Adjustment Act reduced production in order to end ‘overproduction’, increased prices and provided subsidies to farmers. After it was declared illegal by the Supreme Court it was replaced by the Soil Conservation Act which gave subsidies and trained farmers in soil conservation, new farming methods and marketing.

• The Tennessee Valley crossed several states and the region’s problems were too big for any one state to deal with. The TVA built dams to stop the flooding in winter and the droughts in the summer. The cheap hydroelectricity these dams produced attracted new industries to the area, improved transport and helped farmers. These people could then use their new found prosperity to buy the electrical goods mass produced in the cities this helping to reverse the Spiral of Depression by kick starting the Cycle of Prosperity.

Norris Dam, built as part of the TVA.

• A national welfare system was established to provide social security (unemployment benefit) and pensions.

• Industry was helped by the National Recovery Administration through the ‘Blue Eagle scheme’. Trade Union power increased and workers were given improved rights and minimum wages were introduced.

• Without the New Deal unemployment would have been worse. It provided temporary work for millions of unemployed. The public works, roads, dams, schools, airports and ports, helped the USA become a Superpower during the Second World War.

• The New Deal had faults and failures but it avoided helped to preserve freedom and democracy during the depression. Roosevelt was elected President three times and this demonstrated huge popular support for the new Deal

• When the USA went to war in 1942, conscription greatly reduced unemployment. The military forces of America and her allies provided massive orders for American businesses. By 1944 unemployment was replaced by labour shortages and large numbers of women had to enter the workforce.

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The New Deal — A Guide to FDR’s Plan for Relief, Recovery, and Reform

The New Deal was a series of programs and policies implemented in the 1930s by President Franklin Delano Roosevelt in response to severe economic and social issues in the United States.

President Franklin D. Roosevelt in 1944. Image Source: FDR Presidential Library & Museum on Flickr .

New Deal Summary

The New Deal was a series of programs and policies implemented in the 1930s by President Franklin Delano Roosevelt — commonly referred to as FDR — in response to severe economic and social issues in the United States. Each New Deal program and policy fell into one or more of three areas, known as the “Three Rs” — Relief, Recovery, and Reform.

At the end of the Roaring Twenties, the 1929 Stock Market Crash triggered the Great Depression started when the stock market crashed in 1929. Starting in 1931, the southwestern Great Plains suffered from a severe drought, which led to massive dust storms. The area was called “The Dust Bowl” and thousands of people were forced to abandon their homes and move west. In the wake of these events, Roosevelt ran for President in 1932, promising a “New Deal” for Americans, and defeated incumbent Herbert Hoover.

Roosevelt was inaugurated on March 4, 1933. In his First Inaugural Address, he delivered the famous line, “The only thing we have to fear is fear itself.” FDR moved quickly to ease the effects of the Depression on Americans by passing New Deal legislation during “The First Hundred Days” of his Presidency.

FDR started by restoring faith in banks, which had suffered due to the stock market crash of 1929. A Bank Holiday was declared and Congress followed by passing the Emergency Banking Relief Act, which allowed the government to inspect the financial health of banks before allowing them to reopen.

The New Deal aimed to tackle unemployment by creating programs that provided job opportunities. The Civil Works Administration (CWA) and the Civilian Conservation Corps (CCC) employed millions of Americans to work on infrastructure projects, such as building roads, bridges, and schools. Other programs, like the Tennessee Valley Authority (TVA), developed hydroelectric power plants to bring electricity to communities where none existed.

The New Deal also addressed labor relations by passing the National Labor Relations Act — also known as the (Wagner Act). It protected the rights of workers, allowing them to join unions and engage in collective bargaining. The act also established the Fair Labor Standards Act, which set a minimum wage for workers.

The New Deal programs and policies created a significant expansion of the Federal government. They also redefined the government’s role in dealing with economic and social issues. The New Deal was controversial when it was implemented, and its legacy continues to be debated by historians, economists, and others. However, the significance of the New Deal and its impact on the United States during the era leading up to World War II cannot be denied.

What did the New Deal do?

This video from the Daily Bellringer provides an overview of the New Deal and its programs. It also touches on the controversy caused by the New Deal which was caused by the expansion of the Federal Government.

New Deal Facts

• The name “New Deal” came from Franklin D. Roosevelt’s 1932 acceptance speech for the Democratic Party’s presidential nomination. In the speech, he said, “I pledge you, I pledge myself, to a new deal for the American people.”
• The New Deal was designed to deal with the economic and social issues created by the 1929 Stock Market Crash, the Great Depression, and the Dust Bow.
• On March 4, 1933, Franklin D. Roosevelt was elected President. He gave a speech on Capitol Plaza in Washington DC to 100,000 people. He said the “only thing we should be afraid of is fear itself.”
• He took action right away by calling Congress into a special session known as “The Hundred Days,” during which legislation was passed to deal with the Depression and provide economic aid to struggling Americans.
• In an effort to restore the public’s confidence in banks, FDR declared a Bank Holiday and Congress passed the Emergency Banking Relief Act.
• The New Deal dealt with unemployment by creating programs like the Civil Works Administration (CWA) and the Civilian Conservation Corps (CCC), providing jobs for millions of Americans and improving the nation’s infrastructure.
• The New Deal was followed by the Second New Deal, which included the National Labor Relations Act, the  Works Progress Administration, and the Social Security Act.
• The New Deal also included labor-related legislation, such as the National Labor Relations Act (Wagner Act) and the Fair Labor Standards Act, which gave workers the right to join unions, negotiate collectively, and established a minimum wage.
• The New Deal paved the way for the repeal of the 18th Amendment, which established Prohibition. The Beer-Wine Revenue Act of 1933 amended the Volstead Act by raising the amount of alcohol allowed to 3.2 percent and also levied a tax.
• Social programs established by the New Deal are still in effect today, including Social Security and the “Food Stamp Plan.”

New Deal AP US History (APUSH) Terms, Definitions, and FAQs

This section provides terms, definitions, and Frequently Asked Questions about the New Deal and the Second New Deal, including people, events, and programs. Also, be sure to look at our Guide to the AP US History Exam .

The New Deal was a series of policies and programs implemented by President Franklin D. Roosevelt during the 1930s in response to the Great Depression. The New Deal aimed to provide relief to the unemployed and poor, promote economic recovery, and reform the financial system. The New Deal included programs such as the Civilian Conservation Corps (CCC), the Federal Emergency Relief Administration (FERA), and the National Recovery Administration (NRA). It also created numerous agencies and programs such as the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC), and the Social Security Administration.

The second phase of the New Deal, which was enacted in 1935. The Second New Deal focused on providing economic security to Americans through the creation of Social Security and other welfare programs. It also included measures to stimulate the economy, such as the Works Progress Administration (WPA) and the National Labor Relations Act (NLRA). The Second New Deal was instrumental in helping to alleviate poverty and providing employment opportunities during the Great Depression.

FDR’s Alphabet Soup refers to the numerous programs and agencies created during Franklin D. Roosevelt’s presidency as part of the New Deal. These initiatives, often known by their acronyms, aimed to provide relief, recovery, and reform during the Great Depression. Examples include the CCC (Civilian Conservation Corps), the TVA (Tennessee Valley Authority), and the WPA (Works Progress Administration).

The New Deal was a series of economic programs and reforms enacted by President Franklin D. Roosevelt during the Great Depression. The New Deal sought to provide relief, recovery, and reform to the American economy. It included programs such as Social Security, the National Labor Relations Act (NLRA), and the Fair Labor Standards Act (FLSA). These programs were instrumental in helping to protect workers’ rights and providing employment opportunities during the Great Depression. However, the New Deal was controversial, with some arguing it was a “raw deal” for workers and others arguing that it helped to alleviate the suffering of millions of Americans.

The three Rs of the New Deal were 1) Relief for the needy, 2) Recovery of the economy, and 3) Reform of the financial system. Each of the New Deal Programs generally fell into one of these areas. The goal of the three Rs was to keep the United States from falling into another Economic Depression.

New Deal People and Groups

Herbert Hoover — Herbert Hoover served as the 31st President of the United States from 1929 to 1933. He faced the immense challenges of the Great Depression and was criticized for his belief in limited government intervention. Despite his efforts to address the crisis, Hoover’s presidency is often associated with economic hardships and the initial response to the Depression.

John L. Lewis — An American labor leader who was instrumental in the formation of the Congress of Industrial Organizations (CIO) in 1935. He was a key figure in the Second New Deal and helped to pass the National Labor Relations Act (NLRA). He was also responsible for leading several major strikes during the Great Depression, including the United Mine Workers strike of 1934. Lewis worked to protect workers’ rights and provide employment opportunities during the Great Depression.

Franklin D. Roosevelt — Franklin D. Roosevelt was the 32nd President of the United States, serving from 1933 to 1945. He was elected to the presidency during the Great Depression, and his presidency is closely associated with the New Deal, a series of policies and programs aimed at addressing the economic crisis and promoting economic recovery. He was re-elected for an unprecedented four terms and his leadership during the Great Depression and World War II solidified the role of the Federal government in the American economy and society.

Eleanor Roosevelt — The wife of Franklin D. Roosevelt and one of the most influential First Ladies in American history. She was an advocate for civil rights and women’s rights, and she used her position to promote social reform.

FDR’s Brain Trust — A group of advisors to President Franklin D. Roosevelt who helped him develop the New Deal. They included prominent academics and intellectuals such as Raymond Moley, Rexford Tugwell, and Adolf Berle.

New Deal Democrats —  New Deal Democrats were a faction within the Democratic Party during the 1930s and 1940s that supported Franklin D. Roosevelt’s New Deal policies. These Democrats supported increasing government intervention in the economy and expanding social welfare programs.

United Mine Workers — A labor union that was formed in 1890. The union was instrumental in the formation of the Congress of Industrial Organizations (CIO) in 1935 and led several major strikes during the Great Depression, including the United Mine Workers strike of 1934.

Hundred Days Congress — The Hundred Days Congress was a special session of the United States Congress that ran from March 9 to June 16, 1933. It was called in response to the economic crisis of the Great Depression and was used to pass a number of laws known as the New Deal. During this period, President Franklin D. Roosevelt proposed a series of sweeping reforms designed to provide relief for those affected by the depression, as well as to stimulate the economy. The Hundred Days Congress passed a number of laws, including the Emergency Banking Relief Act, the Glass-Steagall Act, and the National Industrial Recovery Act.

New Deal Events

1932 Presidential Election — The 1932 Presidential Election marked a pivotal moment in American history as the nation grappled with the Great Depression. It was primarily a contest between Republican incumbent Herbert Hoover and Democratic candidate Franklin D. Roosevelt (FDR). FDR emerged victorious, promising a “New Deal” to combat the Depression and implementing a series of reforms that fundamentally reshaped the role of the federal government.

Bank Holiday — A bank holiday is a period of time during which banks are closed, usually by government order. In 1933, President Franklin D. Roosevelt declared a national bank holiday in order to address the banking crisis caused by the Great Depression. During the holiday, which lasted four days, the government examined the books of all banks and only those that were found to be sound were allowed to reopen. This action helped stabilize the banking system and restore public confidence in banks.

Fireside Chats — The Fireside Chats were a series of radio addresses given by President Franklin D. Roosevelt during his presidency. The chats were designed to provide the American people with information about the government’s policies and actions and to explain the reasoning behind them in plain language. The chats were informal and conversational in tone, and they were delivered from the White House, often in the evening, giving the impression that Roosevelt was speaking directly to the American people from the warmth and comfort of their own homes. The Fireside Chats were a powerful tool for Roosevelt to communicate with the American people, build public support for his policies and maintain public confidence during a time of economic crisis.

Great Depression — The Great Depression refers to the severe economic downturn that occurred in the United States and other countries during the 1930s. It was characterized by widespread unemployment, poverty, and a sharp decline in industrial production and trade—ultimately leading to a fundamental restructuring of the American economy and significant social and political changes.

Roosevelt Recession — A period of economic contraction that occurred during the Great Depression, starting in 1937 and lasting until 1938. It was caused by a combination of factors, including President Franklin D. Roosevelt’s decision to reduce government spending, an increase in taxes, and the Federal Reserve’s decision to raise interest rates. This resulted in a decrease in consumer spending and investment, leading to a decrease in economic activity. The Roosevelt Recession was a major setback for the New Deal and led to increased unemployment and poverty.

United Mine Workers Strike of 1934 — A major strike led by the United Mine Workers Union during the Great Depression. The strike was in response to wage cuts and other grievances. It lasted for several months and resulted in a victory for the miners, who were able to secure higher wages and better working conditions.

New Deal Programs

Agricultural Adjustment Act (1933) — A law passed by Congress in 1933 as part of the New Deal. The AAA was designed to help farmers by providing subsidies for reducing crop production and encouraging soil conservation. It also established the Agricultural Adjustment Administration (AAA), which was responsible for implementing the provisions of the act. The AAA was instrumental in helping to stabilize agricultural prices and providing economic relief to farmers during the Great Depression.

Civilian Conservation Corps (CCC) — The CCC provided employment for young men between the ages of 18 and 25, who were paid to work on conservation projects such as planting trees, building roads, and constructing dams. The CCC also provided educational opportunities for its workers, including classes in literacy, math, and vocational skills. The CCC was instrumental in helping to restore the environment and providing employment opportunities during the Great Depression.

Civil Works Administration (CWA) — An agency created by the Federal Emergency Relief Act of 1933 as part of the New Deal. The CWA was responsible for providing jobs to millions of Americans during the Great Depression. It provided employment in construction, repair, and maintenance projects such as building roads, bridges, and public buildings. The CWA was instrumental in helping to alleviate poverty and providing employment opportunities during the Great Depression.

Emergency Banking Relief Act (1933) — A law passed by Congress in 1933 which allowed the federal government to provide emergency loans to banks in order to stabilize the banking system. The act was part of President Franklin D. Roosevelt’s New Deal and was designed to restore public confidence in the banking system. It provided for the reopening of solvent banks, the reorganization of insolvent banks, and the establishment of a Federal Deposit Insurance Corporation (FDIC) to insure deposits up to $2,500. The act was instrumental in helping to stabilize the banking system during the Great Depression and restoring public confidence in banks.

Federal Deposit Insurance Corporation (FDIC) — An independent agency of the United States government created in 1933 as part of the New Deal. The FDIC provides insurance for deposits up to a certain amount in member banks, protecting depositors from losses due to bank failures. The FDIC also regulates and supervises financial institutions to ensure that they are operating safely and soundly. It is one of the most important financial regulatory agencies in the United States and has helped to restore public confidence in the banking system.

Federal Emergency Relief Act (1933) — A law passed by Congress in 1933 as part of the New Deal. The FERA provided federal funds to states and local governments to create relief programs for the unemployed. It also established the Civil Works Administration (CWA), which was responsible for providing jobs to millions of Americans during the Great Depression. The FERA was instrumental in helping to alleviate poverty and providing employment opportunities during the Great Depression.

Federal Housing Administration (FHA) — An agency created by the National Housing Act of 1934 as part of the New Deal. The FHA was responsible for providing mortgage insurance to lenders, which allowed them to make home loans with lower down payments and easier credit requirements. This helped to increase homeownership and provided jobs to thousands of Americans during the Great Depression. The FHA helped stabilize the housing market and provide employment opportunities during the Great Depression.

Glass-Steagall Act (1933) — The Glass-Steagall Act was a law passed by Congress in 1933 as part of the New Deal. It was designed to separate commercial and investment banking, and it prohibited banks from engaging in certain types of speculative investments. The act also established the Federal Deposit Insurance Corporation (FDIC), which provided insurance for bank deposits up to a certain amount. The Glass-Steagall Act helped restore public confidence in the banking system and prevent another financial crisis.

National Industrial Recovery Act (1933) —  The National Industrial Recovery Act (NIRA) was a law passed by Congress in 1933 as part of the New Deal. It was designed to stimulate economic growth by providing government assistance to businesses, setting minimum wages and maximum hours for workers, and establishing codes of fair competition. The NIRA also established the National Recovery Administration (NRA), which was responsible for enforcing the provisions of the act. The NIRA was eventually declared unconstitutional by the Supreme Court in 1935.

The Public Works Administration (PWA) — An agency created by the National Recovery Administration of 1933 as part of the New Deal. The PWA was responsible for providing jobs to millions of Americans during the Great Depression. It provided employment in construction, repair, and maintenance projects such as building roads, bridges, and public buildings. The PWA played an important role in helping to alleviate poverty and providing employment opportunities during the Great Depression.

The Tennessee Valley Authority (TVA) — An agency created by the Tennessee Valley Authority Act of 1933 as part of the New Deal. The TVA was responsible for developing the infrastructure and resources of the Tennessee Valley region, including hydroelectric power, flood control, navigation, reforestation, and soil conservation. It also provided jobs to thousands of Americans during the Great Depression. The TVA played an important role in helping modernize the region and providing employment opportunities during the Great Depression.

Second New Deal Programs

Committee for Industrial Organizations (CIO) — An organization formed in 1935 as part of the Second New Deal. The CIO was responsible for organizing workers into unions and bargaining collectively with employers.

Fair Labor Standards Act (1938) — An act passed in 1938 as part of the Second New Deal. The Fair Labor Standards Act was responsible for establishing a minimum wage, overtime pay, and other labor standards.

National Labor Relations Act (1935) — An act passed in 1935 as part of the Second New Deal. The NLRA was responsible for protecting the rights of workers to organize and bargain collectively with their employers. It also established the National Labor Relations Board (NLRB), which was responsible for enforcing the provisions of the act.

Social Security Act (1935) — An act passed as part of the Second New Deal. The Social Security Act was responsible for providing economic security to Americans through the establishment of a federal retirement program and other welfare programs. It also provided unemployment insurance and disability benefits.

Wagner Act — Also known as the National Labor Relations Act (NLRA), it was passed in 1935 as part of the Second New Deal. The Wagner Act was responsible for protecting the rights of workers to organize and bargain collectively with their employers. It also established the National Labor Relations Board (NLRB), which was responsible for enforcing the provisions of the act.

Works Progress Administration (WPA) — An agency created by the Emergency Relief Appropriation Act of 1935 as part of the Second New Deal. The WPA was responsible for providing jobs to millions of Americans during the Great Depression. It funded a variety of projects, including construction, infrastructure development, and arts and culture programs. The WPA was instrumental in helping to stimulate the economy and providing employment opportunities during the Great Depression.

More New Deal Terms and Definitions

21st Amendment — The amendment to the U.S. Constitution that repealed the 18th Amendment and ended Prohibition. The 21st Amendment was ratified in 1933 as part of the New Deal and allowed states to regulate the sale and consumption of alcohol within their borders. It also gave states the power to collect taxes on alcohol sales, which provided a much-needed source of revenue during the Great Depression.

Boondoggling — A term coined by President Franklin D. Roosevelt to describe wasteful government spending on public works projects. The term was used to criticize the New Deal programs, which were seen as a form of government waste and corruption. Boondoggling became a popular term during the Great Depression and is still used today to refer to any wasteful or unnecessary government spending.

Tennessee River Valley — The Tennessee River Valley refers to the region in the southeastern United States encompassing parts of Tennessee, Alabama, and Kentucky. It gained prominence during the New Deal era due to the establishment of the Tennessee Valley Authority (TVA), a federal agency tasked with developing the area’s water resources, controlling flooding, and promoting economic development through hydroelectric power generation and irrigation projects.

National Parks — National Parks are protected areas designated by the federal government to preserve and showcase the country’s natural, historical, and cultural heritage. These areas, managed by the National Park Service, offer opportunities for recreation, conservation, and education. Notable examples include Yellowstone, Yosemite, and the Grand Canyon. National Parks serve as significant landmarks and contribute to the nation’s tourism industry and environmental conservation efforts.

Why is the New Deal important?

The New Deal is important to United States history for several reasons:

1. Response to the Great Depression: The New Deal was a direct response to the economic crisis of the Great Depression, which was one of the most challenging periods in American history. It represented a major shift in the role of the federal government in addressing economic issues and providing relief to citizens.

2. Economic Recovery and Relief: The New Deal implemented a range of programs and policies aimed at stabilizing the economy, creating jobs, and providing relief to those affected by the Great Depression. It helped alleviate immediate suffering and provided assistance to millions of Americans through employment, financial aid, and social welfare programs.

3. Expansion of Federal Government Power: The New Deal marked a significant expansion of the federal government’s role in regulating the economy and addressing social issues. It introduced new agencies and programs, such as the Works Progress Administration (WPA) and Social Security, that had long-lasting impacts on American society and established a precedent for increased government intervention in the economy.

4. Transformation of American Society: The New Deal’s programs had a transformative effect on American society. It brought about improvements in infrastructure, public works, and conservation projects, enhancing the nation’s physical landscape. It also introduced labor reforms, such as the right to unionize and the establishment of minimum wage standards, which aimed to improve working conditions and workers’ rights.

5. Legacy and Long-Term Impacts: Many of the programs and policies initiated during the New Deal era had lasting impacts on American society. Social Security, for example, continues to provide financial security to elderly and disabled Americans. The New Deal also shaped the political landscape, as the Democratic Party under FDR gained support from various social groups and established a coalition that would dominate American politics for decades.

• Written by Randal Rust

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Was the New Deal a Success?

Was the New Deal a success? Many believe it was, as it helped America overcome the calamitous stock market crash of October 1929 brought the prosperous 1920s to a dramatic end (Real GNP per capita fell by 30 percent between 1929 and 1933). The post-World War 2 era of prosperity is largely credited to the New Deal. However, a growing number of historians are challenging this simplistic narrative.

So if the New Deal didn’t get us out of the Great Depression , what did? Forced to acknowledge the failure of the New Deal, some people— including many professors—say World War II. It has become part of the conventional wisdom that World War II was a time of great economic prosperity in the United States, and even that the war rescued the country from the Depression. This is simply not true. If it were, then it might be a good idea to be at war all the time. Think of all the people we’d put to work producing raw materials, building planes, and assembling missiles.

Historians have made much of the substantial production figures that were attained during the war. But most of this increase was due to the construction of armaments and military equipment and payments to military personnel. This production was not geared toward things that ordinary people needed. It made consumers worse off by diverting capital and other resources to goods that no consumer would want to buy. Between 1943 and 1945, some two-fifths of the labor force—including the armed forces, civilian employees of the armed forces, people who worked in the military supply industries, and the unemployed—was producing neither consumer goods nor capital goods. That was not all, of course; the tax monies of the remaining 60 percent went to fund the activities of the 40 percent that were not producing things consumers needed. All of this amounted to a dramatic loss of material wealth.

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     The accomplishments taken place upon the onset of the many New Deal legislations owe much to the seeds implanted and unknowingly disseminated by the pre-WWI Progressive movement. Sparked by the new image as a world power, industrialization, and immigration at the dawn of the new century, a new found reform movement gripped the nation. With the new found image of the nation and world as a whole, the reforms advanced the position of the previously ignored people of the nation, as did its reincarnation and rebirth apparent in the New Deal.

Franklin D. Roosevelt led his presidency for three terms, from 1934-1945, leading the nation through the Great Depression and World War II. Franklin D. Roosevelt and his administration developed a more elaborate program to the New Deal; the New Deal enforced more power for the federal government in the United States. In Document 1, Meridel Lesueur wrote for New Masses on January 1932, emphasizing on women's position in society. Women in this time were perceived as dependent and Lesueur indicates the government's denial in support for women. On March 7, 1934 a letter was directed to Senator Robert Wagner (Document 2). Senator Robert Wagner contradicted the ideals of the New Deal from Roosevelt’s administration. Wagner led

The Legacy Of The New Deal Essay

The economic crisis that showed all the contradictions of capitalism led to an increase of a deep political crisis in the USA in late 1920?s. October 29, 1929 is known in the American history as the Black Tuesday. It was the date, when the American stock market collapsed. In such economically difficult situation, in November 1932, a regular presidential election took place. The Democrat Franklin Roosevelt, who spoke with the program the New Deal, came to presidency. It was a series of social liberal programs applied in the United States in 1933-1938 in response to the Great Depression. The New Deal was focused on three main principles: relief, recovery, and reform.[footnoteRef:1] They promised to bring the country to prosperity and economically stable future. However, the Conservatives criticized the New Deal during the whole period of the reforms. It was expressed by Herbert Hoover in Anti-New Deal Campaign Speech in 1936 and Minnie Hardin in 1937 in a Letter to Eleanor Roosevelt. [1: (notes)]

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Prior to the great depression, the U.S. economy alternated between periods of prosperity and sharp economic decline. During the great depression, aggregate demand dropped sharply, causing the price level and real GOP to decline. As aggregate output declined, the unemployment rate jumped, climbing from around 3 percent in 1929 to 25 percent in1933.

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On October 24, 1929, a day historically known as “Black Thursday”, the United States stock market crashed due to investors in the market starting to “sell off their shares, which resulted in a decline in stock prices.” (Dau-Schmidt, pg 60) This economic downturn in the market gave birth to financial ambivalence in the country, increasing unemployment, as well as other consequences on the landscape of international economics. When President Franklin D. Roosevelt took over as president in the year of 1933, “The country was in its depth of the Great Depression.” (Neal, 2010) Roosevelt’s New Deal consisted of implementing relief programs such as the Work Progress Administration and the Civil Works Administration, which aimed at revitalizing

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Reasons Why Roosevelt Introduced the New Deal There were three main reasons why Roosevelt introduced the New Deal. The first was economic and social problems in the USA, as a result of the Wall Street Crash. The second reason was because of Hoover, the president before Roosevelt; had been a weak president, and could not solve problems, and often made problems worse.

Franklin Roosevelt's New Deal Essay

When President took office in March of 1932 he had an idea of a plan, which would have to develop over time, which was the "New Deal for the American People". He believed that if this plan went through, it would solve the problem of the Great Depression and restore the American economy. President Roosevelt's New Deal that took time to develop included programs that would help the unemployed get jobs, social security issues such as welfare, and housing and agricultural recovery. Roosevelt also included programs to help the banking system. President Roosevelt's New Deal failed to restore the economy as Roosevelt had hoped it would, but in turn it helped the people that suffered the most from the Great

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History Grade 11 - Topic 2 Essay Questions

Essay Question:

To what extent did Roosevelt’s New Deal succeed in mitigating the negative effects of the Great Depression in USA in the 1930’s?  Present an argument in support of your answer using relevant historical evidence. [1]

Introduction:

On 29 October 1929 (also known as “Black Tuesday”), the United States (US) stock market crashed which initiated the Great Depression. [2]   After winning the US elections and taking office in 1933, President Franklin D. Roosevelt sought to bring economic relief to the US during the 1930’s by implementing a series of reforms and restructures in what he called the ‘New Deal’. [3]   Although the ‘New Deal’ succeeded somewhat in relieving economic situations on a macro-level, the “New Deal”, in the long run, is considered a failure as it did not ultimately succeed in what it was set out to do, which was to recover the economy from its “depressed state”. [4]   This statement will be discussed by analyzing the two phases of the “New Deal”, as well as discussing the effects of some of the relief, recovery and reform programs implemented.

The First Hundred Days

When analyzing the legacy of the “New Deal”, it is important to understand that there were two phases of the deal, namely the “First New Deal” and the “Second New Deal”.  The First New Deal consisted mainly of the first three months of Roosevelt’s presidency and is referred to as the “hundred days”. [5]   Within the first hundred days, various relief programs such as the “Federal Emergency Relief Administration” (FRA), the “Civilian Conservation Corps” and the “Agricultural Adjustment Act” were implemented in order to create employment opportunities for Americans as well as providing some extent of economic relief for struggling citizens. [6]

Another significant program that was implemented during the hundred days, was the “National Industrial Recovery Act” (NIRA).  This recovery act allowed working Americans to unionize and in a sense bargain for better working conditions, as well as wages. [7]   Roosevelt felt that a significant part of the recovery process will come from decreasing competition through using set prices, wages and commodities. [8]   Mixed reviews came from the implementation of these recovery acts, as many felt that corporate heads were being disadvantaged by the state, and in some instance some corporations felt as though their competition became the US government itself. [9]   However, on the larger part, many felt that the hundred days and the “First New Deal” was relatively successful as it was marked by a decrease in unemployment and the stabilization of US banks.

The Second New Deal

In 1935, Roosevelt decided that the New Deal should take a more aggressive approach in the attempt to diminish the Great Depression. [10]   This phase is known as the Second New Deal.  One of the more prominent acts implemented was the “Social Security” Act which provided the elderly and widowed people with some financial support, allowed some unemployment and disability compensation and set a framework or minimum wages and maximum work hours. [11]   Furthermore, the “Works Progress Administration” (WPA) was implemented to provide the unemployed with opportunities in the public sector.  These opportunities included building bridges, schools and roads. [12]   To some extent, the Great Deal built a platform for more financial security and opportunity for the American citizens during the onslaught of the Great Depression with its housing, employment and financial interventions. [13]

Criticism of the New Deal

When analyzing some of the programs and acts implemented by the Great Deal, one also has to mention points of criticism.  One of the more popular points of criticism stems from the “interventionalist” and anti-competitive nature of the New Deal. [14]   Larger companies and the Supreme Court also felt that some of the reform initiatives were unconstitutional and did not go through the right channels to implement reform acts. [15]   However, with this criticism in mind, the main reason why the New Deal was deemed unsuccessful, is simply because it did not achieve what it set out to do.  The American economy and employment rates did not recover enough for the New Deal to have remedied the effects of the Great Depression.  Rather, American entrance into the Second World War stimulated more economic growth than the New Deal. [16]

Therefore, one could say that the New Deal mitigated the effects of the Great Depression to an extent where it improved the employment rate from 25% of 1933 to 17% in 1939. [17]   One could also say that some of the relief and reform acts were deemed successful as some of them, such as the Social Security Act, still remains today. [18]   The New Deal also led to a, albeit short-lived, coalition between “white working people, African Americans and left-wing intellectuals”. [19]   Many also argue that the New Deal built a surface for the future economy of America post-World War Two. [20]   However, with regards to the mitigation of the Great Depression itself, the New Deal ultimately did not succeed in ending the Great Depression and its effects.

This content was originally produced for the SAHO classroom by Sebastian Moronell, Ayabulela Ntwakumba, Simone van der Colff & Thandile Xesi.

[1] National Senior Certificate.: “Grade 11 November 2017 History Paper 1 Exam,” National Senior Certificate, November 2017.

[2] M, Johnston.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[3] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[4] Johnston, M.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[5] Britannica, T. Editors of Encyclopaedia.: “New Deal,” Encyclopedia Britannica [online].  Accessed on 20 March 2021 ( https://www.britannica.com/event/New-Deal ).

[6] Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ).

[7] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[8] Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ).

[9] J. Green.: “The New Deal:  crash Course US History #34,” Crash Course [YouTube Online].  Accessed on 23 March 2021 ( https://www.youtube.com/watch?v=6bMq9Ek6jnA&t=380s ).

[10] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[11] Britannica, T. Editors of Encyclopaedia.: “New Deal,” Encyclopedia Britannica [online].  Accessed on 20 March 2021 ( https://www.britannica.com/event/New-Deal ).

[12] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[13] D.M. Kennedy.: “What the New Deal Did,” Political Science Quarterly, (124), (2), 2009, pp. 265-267.

[14] M, Johnston.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[15] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[16] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[17] Johnston, M.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[18] Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ).

[19] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[20] D.M. Kennedy.: “What the New Deal Did,” Political Science Quarterly, (124), (2), 2009, p. 267.

• Britannica, T. Editors of Encyclopaedia.: “New Deal,” Encyclopedia Britannica [online], January 2021.  Accessed on 20 March 2021 ( https://www.britannica.com/event/New-Deal ).
• Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ). 
• Green, J.: “The New Deal:  Crash Course US History #34,” Crash Course [online].  Accessed on 24 March 2021 ( https://www.youtube.com/watch?v=6bMq9Ek6jnA&t=391s ).
• History.  Editors of History.: “New Deal,” History [online], November 2021.  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).
• Johnston, M.: “The Economic Effects of the New Deal,” Investopedia [online], January 2021.  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).
• Kennedy, D.M.: “What the New Deal Did,” Political Science Quarterly, (124),(2), 2009, pp. 251-268.

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How Did The New Deal Contribute To The Success Of The 3 R's

The New Deal programs were a set of acts legislated by the U.S. government in order to aid Americans during the Great Depression. The Great Depression initially started in the 1920’s, for many reasons. These reasons vary from underconsumption and overproduction to the gold standard and the stock market crash of 1929. President Franklin D. Roosevelt was the first to implement this plan, and his goals were referred to as the 3 R’s. Relief, mainly for the unemployed and poor, recovery from the Great Depression, as well as to bring the economy back to normal, and reform, to prevent a repeat of these actions. FDR’s New Deal program was an overall success, mainly because of 3 specific acts, which were the NIRA (National Industrial Recovery Act), …show more content…

“Antitrust laws were suspended, and companies were required to write industry-wide ‘codes of fair competition’ that effectively fixed prices and wages, established production quotas, and imposed restrictions on entry of other companies into the alliances.”1 This excerpt displays the successes of the National Industrial Recovery Act. It was a benefit for all workers in these industries, and made their working life much better, which was much needed after a disaster such as the Great Depression. Along with the NIRA, the Civilian Conservation Corps Act also benefited many other Americans after the Great Depression. The Civilian Conservation Corps, also known as the CCC, was a program, enacted by FDR as a part of the New Deal, to give unemployed young men a job, which not only benefits them, but also the environment and the nation’s public lands. “Education opportunities are an added bonus of joining the C’s. In fact, many completed their high school education while serving. Leadership advancement positions with an increase in pay were also offered to hard-workers.”2 Through this program, all sides reap

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Did New Deal Programs Help End the Great Depression?

By: Brian Dunleavy

Updated: September 10, 2018 | Original: August 13, 2018

Since the late 1930s, conventional wisdom has held that President Franklin D. Roosevelt ’s “ New Deal ” helped bring about the end of the Great Depression . The series of social and government spending programs did get millions of Americans back to work on hundreds of public projects across the country.

But in the 80 years since the Great Depression was formally declared over in June of 1938, historians and economists have continued to debate the true merits of the New Deal and whether, in fact, the radical government spending programs brought about the end of the biggest economic downturn in history.

Many New Deal programs established critical economic safeguards.

“The reforms put in place by New Deal, including encouraging the beginning of the labor movement , which fostered wage growth and sustained the purchasing power of millions of Americans, the establishment of Social Security and the federal regulations imposed on the financial industry, as imperfect as they were, essentially ensured there wouldn’t be another Great Depression after the 1930s,” says Nelson Lichtenstein , professor of history and director of the Center for the Study of Work, Labor and Democracy at the University of California, Santa Barbara.

“And there hasn’t been. We’ve had a few close calls, but nothing like the Great Depression,” he says.

But, just because the United States hasn’t repeated the economic catastrophe of the Great Depression doesn’t mean the programs of the New Deal can take all the credit. Other factors were also at play—including the onset of a major world war. “It really could be argued World War II , which ultimately lowered unemployment and increased GNP through weapons production really played a much bigger role,” Lichtenstein says.

Still, as Dr. Lichtenstein notes, several programs created through the New Deal did have a lasting positive impact on the U.S. economy which was flagging throughout the 1930s, among them the Social Security Act , which provided income for the elderly, disabled and children of poor families. The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation , which effectively insured the savings of Americans in the event of a bank failure, which was all too common at the time.

The modern labor movement was born out of New Deal initiatives.

In addition, Lichtenstein notes, the National Industrial Recovery Act of 1933 was enacted to foster “fair competition” through the fixing of prices and wages and the establishment of production quotas, among other measures.

The subsequent National Labor Relations Act of 1935 allowed for collective bargaining and essentially led to the development of the labor movement in the United States, which protected workers’ rights and wages.

But New Deal programs alone weren’t enough to end the Great Depression.

According to Linda Gordon , professor of history at New York University, the Works Progress Administration , created in 1935, also had a positive impact by employing more than 8 million Americans in building projects ranging from bridges and airports to parks and schools.

Such programs certainly helped end the Great Depression, “but were insufficient [because] the amount of government funds for stimulus wasn’t large enough,” she notes. “Only World War II, with its demands for massive war production, which created lots of jobs, ended the Depression.”

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Success of the New Deal

The Great Depression of the 1930s took the world by storm, especially in the United States, where people panicked over the sudden collapse of Wall Street, revealing the perceived success of the New Deal.

Introduction : Success of the New Deal

Table of Contents

The Great Depression of the 1930s took the world by storm, especially in the United States, where people panicked over the sudden collapse of Wall Street, revealing the perceived success of the New Deal. The phenomena of overproduction and low consumption spread like wildfire. The Great Depression started with the market crash in the summer of 1929 and extended to other aspects of the economy. Investors fled Wall Street, leading to bankruptcies within a day, forcing foreclosures and repossessions. This resulted in more than 4 million people becoming jobless in the United States alone, and adherence to the gold standard for currency exchange further exacerbated the crisis in Europe.

Incumbent President Herbert Hoover attempted to boost public confidence with assurances, but all efforts ended in smoke. Industries came to a halt, and farmers found themselves amidst falling prices and rotting crops in the fields. Despite having money, people had nothing to eat. Banks were forced to liquidate loans to supplement the cash that people were withdrawing en masse (Berten 2001). The administration in Washington tried to support the banks, but this strategy also failed.

The three addresses of Roosevelt show that he tried to address the banking system first to win public confidence. The documentary “The River” demonstrates that 20 years of cultivation made the land infertile in the valley, leading to widespread loss of fertile land. Additionally, “In Dubious Battle” by Steinbeck shows some support for the strategies adopted by the Roosevelt administration in Washington, pointing to the desperate struggle waged against the Great Depression. John Steinbeck does not clearly support the strikers despite low wages and the repressive tactics of the growers.

These documents show that the New Deal, comprising relief, recovery, and reform, won support not only from John Steinbeck but also from Pare Lorenz, indicating that the steps taken by the administration were shown to have succeeded to some extent.

First Step of Success of the New Deal

The first step taken by the administration was relief, designed for the jobless and the poor who suffered the most during the Great Depression. This was because they lacked money and had no jobs to support their families. President Roosevelt highlighted this need in his second address on May 7, 1937, stating, “Our next step in seeking immediate relief is a grant of half a billion dollars to help the states, counties, and municipalities in their duty to care for those who need direct and immediate relief,” emphasizing his strategy of providing relief (Roosevelt).

This initiative led to the introduction of the legislation known as “The Farm Relief Bill.” According to the president, “measures will … be proposed which will attempt to give to the industrial workers of the country a fair wage system,” aimed at providing a fair system for the poor and needy to earn a livelihood. In “The River,” Pare Lorenzo described the situation of the poor as “Aimless, footloose, and impoverished, / Unable to eat even from the land because their cash crop is their only livelihood,” which lost its value due to a sudden downturn in prices (Lorenz).

Although John Steinbeck did not explicitly state in the novel that he supported the New Deal, some of his words and descriptions suggest his opposition to the actions of the apple pickers. Critic Michael Szalay, in his book “New Deal Modernism: American Literature and the Invention of the Welfare State,” asserts that “Steinbeck was every bit the government man, meeting twice with Roosevelt in the thirties” (71). Szalay also notes that Steinbeck and Pare Lorenz, a cultural official of the New Deal, used to meet, indicating their shared support for relief efforts. Therefore, both of them were likely to support relief, even if not completely endorsing upheaval. When Jim asks about wages, Mac tells him, “Raising wages isn’t all we’re after” (65), and their eventual defeat suggests that Steinbeck does not endorse this upheaval. Therefore, it is evident that he is inclined to support relief for the poor, even if it falls short of complete upheaval.

Recovery, and Success of the New Deal

Regarding recovery, after Herbert Hoover’s departure, Roosevelt initiated the establishment of the National Recovery Administration (NRA). This move aimed to increase government spending and provide relief to the public by ending deflation and suspending the gold standard to eliminate “cut-throat competition” (Roosevelt). In his third address on July 24, 1933, President Roosevelt outlined the “fundamentals of this planning for national recovery,” elaborating on the Industrial Recovery Act. He emphasized that “reasonable wages — and require the same hours — reasonable hours” were at the heart of this act, intended to revive the industry after a four-year downturn (Roosevelt).

Lorenz expressed similar support for this aspect of recovery in the New Deal. He explicitly stated that the Farm Security Administration had come to the rescue of the agricultural community, emphasizing that “you cannot plan for water and land unless you plan for people.” Lorenz further noted that the FSA had “lent thousands of dollars to farmers / in the Valley” who were affected by the depression and had lost everything (Lorenz). This demonstrates his clear endorsement of the New Deal’s efforts.

Even John Steinbeck, as Michael Szalay pointed out, stated in a letter, “I don’t like communists,” after the publication of the novel “In Dubious Battle” (71). This suggests that Steinbeck supported the New Deal, including its recovery aspects and assistance for landowners. This support is evident in the novel, where Anderson is compelled to evict the strikers to avoid facing consequences. This implies that the recovery part of the New Deal was successful.

It is possible that the strike at farms served as a means of cutting production, allowing farmers to pursue recovery through increased prices. This strategy could ultimately contribute to raising the standard of living.

Reforms, and Success of the New Deal

The third aspect of the New Deal involved reforms in various sectors, encompassing banking, industry, and agriculture. In his first address on March 12, 1933, President Roosevelt acknowledged that “some of our bankers had shown themselves either incompetent or dishonest,” prompting the legal authorization to “develop a program of rehabilitation of our banking facilities.” In his second address, he emphasized the need for reforms across all sectors, including agriculture and industry. This reform agenda also extended to the employment market, leading to the launch of the Civilian Conservation Corps program. The Farm Relief Bill and Railroad Bill aimed at achieving similar goals, involving “a general reduction of armaments,” cutting trade barriers, stabilizing currency, and establishing good relations (Roosevelt).

The implementation of these reforms is evident in “The River,” where Lorenz describes the construction of a great dam as a “barrier to hold water” during flood times and to provide water when needed. This illustrates the practical application of reforms in the agricultural sector, with additional barriers constructed on the river (Lorenz).

While it is not explicitly mentioned in “In Dubious Battle,” the final scene, where the sheriff arrives to disperse the mob at the orchard, reinforces Steinbeck’s support for the reforming authority. When the sheriff addresses the crowd, stating, “If there’s anyone in authority I want to see him,” and no one comes forward, Steinbeck appears to distance himself from supporting the mob and the strikers. Instead, he advocates for peaceful strikes and urges avoiding making a mess of things (Steinbeck 258). This suggests that Steinbeck supports the idea of reform through established authorities, such as the sheriff and the administration.

Conclusion : Success of the New Deal

In short, all three documents strongly support the New Deal actions and legislative acts that facilitated the recovery of economic sectors. The measures undertaken included relief, recovery, and reform acts, which in turn led to various other measures, acts, and legal actions. President Roosevelt’s addresses make it evident that he initially prioritized relief, followed by the recovery and reforms of the banking sector, involving government intervention. Subsequently, attention was directed towards transportation, agriculture, and railways.

Government intervention was not confined to relief and recovery operations but extended to direct involvement through various legal acts legislated by Congress and enforced by the administration. The president emphasized in his first address the enforcement of regulations to allow banks to “continue their functions to take care of the distribution of food,” highlighting the correction of the banking sector as a primary focus of the New Deal. Relief work is emphasized in the second and third addresses, where the president called for raising a quarter of a million to engage in forestry and flood prevention work. This is also evident in “The River,” where dams and barriers were constructed on the river. The New Deal persisted until 1934, at which point the economy showed signs of recovery. This marked the conclusion of that era, after which the administration introduced the second New Deal to further stimulate growth. Consequently, these documents illustrate the success of the New Deal in implementing relief, recovery, and reform programs, laws, and regulations.

Works Cited: Success of the New Deal

• Berten, Pierre. The Great Depression: 1929-1939 . Doubleday Canada, Limited. 2001. Print.
• Lorentz, Pare. “The River 1937.”YouTube. YouTube, LLC. 20 July 2008. Web. 26 March 20123.
• Michael Szalay. New Deal Modernism: American Literature and the Invention of the Welfare State. Duke University Press. 2000. Print. 71-151.
• Roosevelt, Franklin D. “On the Bank Crisis.” Fireside Chat by Franklin D. Roosevelt . n. d. Web. 25 March 2023.
• ————————–. “Outlining the New Deal Program.” Fireside Chat by Franklin D. Roosevelt. n. d. Web. 25 March 2023.
• ————————–. ” On the Purposes and Foundations of the Recovery Program .” Fireside Chat by Franklin D. Roosevelt. n. d. Web. 25 March 2023.
• Steinbeck, John. In Dubious Battle. Penguin Classics. New York. 2001. Print.

Relevant Questions About Success of the New Deal

• To what extent did the successes of the New Deal effectively address the economic challenges of the Great Depression?
• How did the successes of the New Deal contribute to long-term structural changes in the U.S. economy?
• What criticisms and controversies surround the successes of the New Deal’s effectiveness, and how do historians evaluate its success in hindsight?

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Was The New Deal A Success Or Failure Essay

Roosevelt’s New Deal was a response to the Great Depression, and it is considered one of the most ambitious pieces of legislation in American history. The New Deal programs created jobs and provided relief for the poor, but they also had some unintended consequences.

One of the biggest successes of Roosevelt’s New Deal was the creation of the Social Security system. This safety net has helped millions of Americans maintain a basic standard of living during retirement or times of unemployment. The New Deal also helped to create union protections for workers, which have improved working conditions and wages for millions of Americans.

However, the New Deal also had some failures. One of the most controversial aspects of the New Deal was the National Industrial Recovery Act, which many economists believe actually prolonged the Great Depression. The New Deal also increased the size and scope of the federal government, which some critics argue has led to an unsustainable level of government spending.

He was saddled with several challenges, each of which required immediate attention. To begin with, the stock market had ruined millions of investors who had paid high prices for their shares and subsequently been forced to sell them for next to nothing. Millions of investors had purchased shares using borrowed money that they could not repay, and those creditors were therefore unable to profit from their investments financially.

The New Deal helped to ease the pain for many of these people. Secondly, banks had failed by the thousands, leaving depositors without their savings and often ruining them financially. The New Deal closed most of the insolvent banks and set up the Federal Deposit Insurance Corporation (FDIC) to protect bank deposits in the future. This action stopped the panic that might otherwise have ensued and restored some confidence in the banking system.

Thirdly, agricultural prices had fallen sharply, due to overproduction and foreign competition, causing great hardship for farmers. The New Deal aided farmers by paying them subsidies not to produce certain crops and by setting minimum prices for others. It also helped them get loans to tide them over during difficult times. These measures did not solve the agricultural problem in the long run, but they did alleviate some of the immediate distress.

Fourthly, industry had also been suffering. Factories were operating at only a fraction of their capacity, and millions of workers were unemployed. The New Deal helped industry by providing loans for modernization and by setting up codes of fair practice. It also provided funds for public works projects, which employed many people. These measures helped to ease the problem of unemployment, although not entirely solve it.

The New Deal did have some successes, then, in dealing with the problems of the Great Depression. However, it did not achieve all that Roosevelt had hoped it would. One major failure was in its inability to restore business confidence and bring about a genuine recovery. Another was its failure to alleviate the problem of poverty. Overall, though, the New Deal did help to ease the suffering caused by the Great Depression and gave hope to many people who had lost everything.

Second, since they had failed to profit from the market, banks were in a precarious position. Furthermore, because many of the banks were overwhelmed by the millions of people who attempted to withdraw their money believing it would be safer at home. Many of these banks were forced to close down, and out of the 25 000 banks in Germany in 1929, 10 000 had vanished by 1933 as a result of this. This meant that thousands of average folks who had nothing to do with the speculation lost everything when their life savings vaporized.

So when people started to lose confidence in the banks and started withdrawing their savings, it only hastened the demise of many banks.

The New Deal was not just about relief and recovery, however. Roosevelt also wanted to reform the banking system so that such a catastrophe would never happen again. One of his first actions was to declare a bank holiday, during which all banks were closed so that they could be inspected and those that were sound could reopen.

He also set up the Federal Deposit Insurance Corporation (FDIC), which guaranteed people’s deposits up to a certain amount. This made people much more likely to keep their money in the bank, even during times of economic turmoil. Finally, Roosevelt set up the Securities and Exchange Commission (SEC) to regulate the stock market and prevent another crash like the one in 1929.

The New Deal did have some successes. One of the most notable was the Civilian Conservation Corps (CCC), which put young men to work on projects such as planting trees, building roads, and fighting forest fires. The CCC not only helped to improve the country’s infrastructure, but also gave its participants a sense of purpose and pride.

Another New Deal program that had a positive impact was the Tennessee Valley Authority (TVA). The TVA built dams and power plants in the Tennessee River valley, providing cheap electricity to the area and helping to spur economic development. The TVA also created jobs and improved living conditions in the region.

However, not all of the New Deal programs were successful. One of the most controversial was the National Recovery Administration (NRA), which was designed to help businesses recover from the Great Depression by setting codes of practice and minimum wages. The NRA was eventually declared unconstitutional, but not before it had helped to raise wages and improve working conditions for millions of Americans.

Another New Deal program that faced opposition was the Agricultural Adjustment Administration (AAA). The AAA paid farmers to reduce their output in order to raise prices. This made sense in theory, but in practice it often meant that farmers who were already struggling were forced to even further reduce their standard of living. The AAA also came under fire for paying farmers to destroy perfectly good food while people in cities were starving.

Third, demand for all types of products dropped significantly, and many employees were laid off. Industrial production in 1933 was half that of 1929, and unemployment peaked at 14 million people, about a quarter of the total workforce.

Agricultural prices also fell sharply, but not nearly as dramatically as industrial prices. Farm incomes fell by half between 1929 and 1932. Wheat, for example, sold for $1.06 a bushel in 1929 but only forty cents a bushel in 1932.

The New Deal programs put people to work on public projects, helped farmers and homeowners, and provided relief for the unemployed and for those suffering from foreclosure of their homes. The New Deal also created Social Security and strengthened labor laws and protections.

While the New Deal did create some jobs and provide much-needed assistance to many Americans, it was not enough to end the Great Depression. Some New Deal programs were later declared unconstitutional by the Supreme Court, and many of the programs were eventually ended. Overall, the New Deal did not bring an end to the Great Depression, but it did help ease the suffering of millions of Americans. New Deal programs also laid the groundwork for many of the social welfare programs we have today.

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New York Attorney General Questions Trump’s $175 Million Bond Deal

Letitia James said in court papers that the California company providing the guarantee was not qualified to do such deals in New York.

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By Ben Protess and Matthew Haag

The New York attorney general’s office on Thursday took exception to a $175 million bond that Donald J. Trump recently posted in his civil fraud case, questioning the qualifications of the California company that provided it.

The dispute stems from a $454 million judgment Mr. Trump is facing in the case, which the attorney general’s office brought against the former president and his family business. The attorney general, Letitia James, accused Mr. Trump of fraudulently inflating his net worth, leading to a monthslong trial last year that ended with a judge imposing the huge penalty.

Mr. Trump had to obtain the bond as a financial guarantee while he appeals the penalty — or else open himself up to the possibility that Ms. James would collect. Without a bond in place, she could have frozen his bank accounts and begun the complicated process of trying to seize some of his New York properties.

Mr. Trump appeared to stave off this calamity on Monday when he posted the $175 million bond from the California firm, Knight Specialty Insurance Company. Although he was originally required to secure a guarantee for the full $454 million judgment, an appeals court recently granted him a break, allowing him to post the smaller bond.

By providing the bond — which is a legal document, not an actual transfer of money — Knight essentially promises New York’s court system that it will cover $175 million of the judgment against Mr. Trump if he loses his appeal and fails to pay. In return, Mr. Trump pays a fee to Knight, and pledges it a significant amount of cash as collateral.

Now, however, Ms. James is raising questions that could imperil the deal with Knight, which is owned by Don Hankey, a billionaire who made his fortune with subprime loans . And the judge in the case, Arthur F. Engoron, has tentatively scheduled a hearing for April 22 to discuss the bond.

In a court filing on Thursday, Ms. James noted that Knight was not registered to issue appeal bonds in New York, and so she demanded that the company or Mr. Trump’s lawyers file paperwork to “justify” the bond within 10 days. Ms. James is seeking to clarify whether Knight, which had never posted a similar court bond before aiding Mr. Trump, is financially capable of fulfilling its obligation to pay the $175 million if Mr. Trump defaults.

Even if Knight lacks the funds itself, the company should be able to tap the collateral Mr. Trump pledged.

In an interview this week, Mr. Hankey said that Mr. Trump pledged $175 million in cash as collateral that was being handled by a brokerage firm. Mr. Trump, in the meantime, is able to earn interest on the money.

In a statement on Thursday, a lawyer for Mr. Trump, Christopher M. Kise, slammed Ms. James, calling her case a “baseless and vindictive political crusade” and her objections to the bond an effort “to stir up some equally baseless public quarrel in a desperate effort to regain relevance.”

Mr. Hankey and Amit Shah, the chief executive of Knight Insurance Group, the parent company of Knight Specialty Insurance Company, did not immediately return requests for comment on Thursday. Mr. Shah told CBS News that Knight had the authority to issue the bond through Excess Line Association of New York, a nonprofit created by New York State that serves as a facilitator between brokers and regulators.

In the earlier interview, Mr. Hankey said he had made contact with representatives of Mr. Trump after a New York judge in February imposed a $454 million judgment in the former president’s civil fraud case and offered to help him post bond. Mr. Hankey said his motivation was business, not politics.

Knight Insurance Group is one of eight companies under the Hankey Group, all based in Southern California. Mr. Hankey earned a reputation as a provider of risky and lucrative loans, specifically collateral-based debt that can be arranged more quickly than conventional loans and requires borrowers to pledge valuable assets.

His companies are known for relentlessly calling people who miss payments by a day, and repossessing vehicles from delinquent borrowers, according to news accounts and regulators.

Mr. Hankey said representatives of Mr. Trump called him after the appeals court lowered the bond to $175 million and asked if his company could arrange the bond.

“I said, ‘We’d be happy to,’” Mr. Hankey said on Wednesday. “I would have done this for Donald Trump. I would have done it for a Democrat.”

Ben Protess is an investigative reporter at The Times, writing about public corruption. He has been covering the various criminal investigations into former President Trump and his allies. More about Ben Protess

Matthew Haag writes about the intersection of real estate and politics in the New York region. He has been a journalist for two decades. More about Matthew Haag

Our Coverage of the Trump Hush-Money Case

The manhattan district attorney has filed charges against former president donald trump over a hush-money payment to a porn star on the eve of the 2016 election..

Taking the Case to Trial: Trump is all but certain to become the first former U.S. president to stand trial on criminal charges after a judge denied his effort to delay the proceeding and confirmed it will begin on April 15 .

Implications for Trump: As the case goes to trial, the former president’s inner circle sees a silver lining in the timing. But Trump wouldn’t be able to pardon himself  should he become president again as he could if found guilty in the federal cases against him.

Michael Cohen: Trump’s former fixer was not an essential witness in the former president’s civil fraud trial in New York  that concluded in January. But he will be when he takes the stand in the hush-money case .

Stormy Daniels: The chain of events flowing from a 2006 encounter that the adult film star said she had with Trump has led to the brink of a historic trial. Here's a look inside the hush-money payout .