Scribd
Upload
12 views2 pages

Roosevelt's New Deal: Success or Failure?

The document discusses whether Roosevelt's New Deal succeeded in mitigating the negative effects of the Great Depression. It analyzes the two phases of the New Deal and some of the relief, recovery and reform programs. While the New Deal provided some economic relief and improved unemployment, it is ultimately considered a failure as it did not fully recover the economy from its depressed state.

Uploaded by

Menzi Zondo
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
12 views2 pages

Roosevelt's New Deal: Success or Failure?

The document discusses whether Roosevelt's New Deal succeeded in mitigating the negative effects of the Great Depression. It analyzes the two phases of the New Deal and some of the relief, recovery and reform programs. While the New Deal provided some economic relief and improved unemployment, it is ultimately considered a failure as it did not fully recover the economy from its depressed state.

Uploaded by

Menzi Zondo
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd

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]

Conclusion

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.

Common questions

Powered by AI

The First New Deal, characterized by the initial 'hundred days,' focused on quick relief and stabilization efforts, such as the Federal Emergency Relief Administration and the National Industrial Recovery Act . The Second New Deal, starting in 1935, took a more aggressive approach with programs like the Social Security Act and the Works Progress Administration, aiming to provide more sustainable social reforms and employment opportunities .

The Works Progress Administration was significant for its large-scale creation of public sector jobs, engaging people in projects like building infrastructure such as bridges, schools, and roads. This program provided critical employment opportunities during the Depression, contributing to a reduction in unemployment rates .

The Social Security Act provided a framework for modern welfare by establishing financial support for the elderly, widowed, and disabled, along with setting minimum wages and maximum work hours . Its enduring legacy is evidenced by its continued existence as a cornerstone of American social welfare, promoting economic security .

The New Deal aimed to provide economic relief, recovery, and reform to mitigate the effects of the Great Depression. Although it succeeded somewhat in relieving economic situations at a macro level, it ultimately failed to fully recover the economy as intended. Unemployment was reduced from 25% in 1933 to 17% in 1939, but it was the onset of World War II that more significantly stimulated economic recovery .

The entry into World War II had a more pronounced effect on economic recovery than the New Deal by significantly stimulating industrial production and employment, leading to an economic upswing that dwarfed the improvements achieved by New Deal programs .

Criticisms of the New Deal centered on its interventionist nature deemed anti-competitive, and many viewed some reforms as unconstitutional due to inadequate legal channels being used . These tensions underscored the conflict between the need for federal intervention in crisis and maintaining constitutional limits, complicating full implementation of the reforms .

Critics argued the New Deal was unsuccessful because it did not fully restore the economy; employment rates improved but did not recover sufficiently. It was also perceived as intervening excessively in the market, with some measures seen as unconstitutional. Ultimately, World War II, not the New Deal, provided the necessary economic stimulus .

Beyond economic recovery, the New Deal fostered a temporary coalition between diverse societal groups, including white working people, African Americans, and left-wing intellectuals, which reflects its social impact. It also laid groundwork for future economic policies and social reform legislation in the post-World War Two era .

The New Deal's relief programs, like the Federal Emergency Relief Administration, played a crucial role in providing immediate aid, which contributed to the short-term stabilization of banks and a reduction in unemployment through job creation and economic confidence restoration .

The National Industrial Recovery Act was intended to reduce competition through set prices and wages, allowing working Americans to unionize for better conditions . While it was seen as a measure to stabilize industries and improve labor conditions, it received mixed reviews. Corporate leaders often viewed it as disadvantageous, seeing the state as a competitor. However, it contributed to the stabilization of banks and a decrease in unemployment .

You might also like