How effective was the New Deal in bringing about social and Economic change? Roosevelt:
2 weekly Press conferences – explained polices carefully + invited spontaneous questions Fireside chats -directly spoke to american public + instilled confidence Charismatic good communicator friendly and open , rather than hoovers ‘us’ and them. Flexible in politics , more accepting of direct gov action
Not a properly thought out cohesive programme, responded to circumstances as they arose, Often contradictory 100 days: Used Emergency legislation ‘ Trading with the Enemy Act’ , gave the power bypass congress ratification allowing him to take action quickly and deal with the crisis, Indicating severity of Depression Unprecedented amount of emergency legislation introduced
Set up alphabet agencies – which would enact legislation
Hoover was seen as aloof but he did care and tried to implement policies. He rigidly stuck to his beliefs, but gave up his own money to help (maybe not being cruel- he genuinely believed it was for the best). He seemed distant when people were starving and said they didn’t work hard enough alienating people. The ‘us’ and ‘them’ divide was worsened by the treatment of bonus army. Did set up veteran’s administration, providing $675million on veterans disabilities- still only remembered for Bonus Army. Veterans to be paid in 1945- because of depression- wanted pay early- by 1932 20000 camped out in protest. Feeling sorry for them, Hoover insisted he could not help them get their pay early but offered to pay $100000 for their transport home. When they refused to leave, tanks and tear gas set on veterans. Hoover was blamed, despite it being General McAuthurs idea. Constant public optimism lead many people to think he had lost touch with reality Openness towards Press Corps – able to effectively control newspaper reporting
How effective was it in delivering reform of financial system: Passed laws to ensure economic disaster did not occur again
Many contradictory measures believed in balancing budget reluctant to spend excessively on federal projects. ND designed to save capitalist system , measures restore capitalist confidence and expansion , many measures favoured big business , frustrated fro their ingratitude for all the ND had done for them but recognised that solving economic problems lay in hands of large corporations Needed the cooperation of businessmen- no alternative structure to change things Led Gov. vulnerable to accusation that any of the proposals reflected vested interests. Remained fiscal conservative —- did not adopt a plan of permanent massive state spending. 1933
Emergency Banking Act 1933
1932- run on the banks , closing at 40 /day
Closed all banks for 4 days.
Banks brought under control of Treasury , who inspected all accounts, only those properly managed and with enough cash allowed to reopen
Reconstruction Finance Corporation (RFC) 1933
Bought bank debts to make institutions financially sound before reopening. Restored confidence in Banking system therefore more money deposited then withdrawn $1bn deposited by april
Glass Steagall Banking Act 1933
Separated Commercial high street banks from investment banks ordinary peoples deposits would no longer be involved in investment that fuels speculation. Bank officials could not take out personal loans from their own banks. Buying and selling government securities become centralised from Red Reserve banks to board in Washington
Also established the
Federal Deposit Insurance Act 1933
Individual bank deposits protected against bank failure up to $2500, more permanent security.
Economy Act 1933
Made it clear Roosevelt intended to keep the Federal Budget under control. Cut salaries of government workers and veteran’s pensions- saved $500 million a year
Truth-in-securities Act 1933
Forced brokers to offer clients realistic information about the securities they were selling—- greater...
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