Did the New Deal work?

This is a serious question for historians. The United States did eventually recover from the Depression of the 1930s - but how much of this recovery was the result of the New Deal?

The only thing we have to fear is fear itself.

Franklin D. Roosevelt

This famous remark by Roosevelt is important in any assessment of the New Deal. As the Depression gathered pace after 1929, Americans had lost confidence in their government's ability to deliver prosperity. The New Deal helped to restore that confidence. Roosevelt's public image was one of strength and assurance, of a powerful and reassuring leader.

Through the New Deal measures he gave the impression of a man who was taking charge, who knew what he was doing. At the time this was immensely important.

Unemployment

The numbers out of work fell steadily after Roosevelt took over - from 14 million in 1933 to under 8 million by 1937. Clearly, the New Deal, through the work of the "Alphabet" agencies, did help restore confidence and help alleviate poverty.

However, in 1938 unemployment increased again to more than 10 million, after Roosevelt reduced government spending. It only began to fall steeply again in 1939 when the USA began to build up its armaments in case of war. This led to huge increases in jobs in industry.

Relief from poverty

In its efforts to help the poor and the destitute, the New Deal had many successes. The many relief schemes provided jobs and support for millions of people. The help itself may have been fairly basic, but, at least the government was now taking responsibility for the welfare of US citizens. The days of laissez-faire were gone.

Public works

Under the New Deal, the country gained from public works projects - dams, roads, airfields, schools, bridges, reforestation schemes, and similar projects. These brought lasting benefits to local communities.

An example was The Tennessee Valley Authority, which carried out a long-term transformation of some of the USA's most deprived areas by developing irrigation and hydro-electrical projects.

The banking system

American banks were regulated and properly vetted. This helped restore public confidence in them and helped place them on a more secure and stable footing - ready to support steady and sustained economic growth.

Political effects

The New Deal restored the confidence of the American people in their government. They retained their belief in democracy at a time when, in Europe, democracy was facing major challenges from far-right, anti-democratic politics.

Effectiveness of the New Deal

It could be said that Roosevelt's New Deal helped restore confidence to American companies and citizens. The New Deal identified problems, such as banking irregularities, and tried to address them. Roosevelt's public work schemes also helped to ease the burden of unemployment.

Although the actual amount of success of the New Deal can be argued over, Roosevelt's measures had at least held together the economy of the USA and provided relief to the victims of the Depression. Also, while some European nations turned to extreme totalitarian political systems as a response to the Depression, Roosevelt had preserved the democratic tradition of America.

Realistically, the economy of the USA only fully recovered with the outbreak of World War II. With European industry and agriculture shattered by the conflict, American factories and farmers reaped the benefits. The need to raise a US army also solved the unemployment crisis.

	Created by kloonirex over 8 years ago

Notes from BBC bitesize for The new deal GCSE History

The New Deal - Notes