The New Deal and Economic Recovery in the U.S.

Topics: Great Depression, Franklin D. Roosevelt, Civilian Conservation Corps Pages: 1 (534 words) Published: April 25, 2015
How important was the New Deal to the economic recovery of the USA in the years 1933 to 1941? (24 marks) The First New Deal in 1933 to 1941 had three broad aims. The first aim was relief, giving immediate aid to those worst hit. The second aim was recovery, to get the struggling economy back on its feet. Finally, the third aim was reform, to change the financial systems and introduce regulations. It can be argued that the New Deal was important in recovering the economy in the USA due to the alphabet agencies and restoring faith in the banking sector. However, it can also be argued that there were other factors for the economic recovery such the Second World War. The New Deal was not important to the economic recovery of the USA in the years 1933 to 1941 due to the Second World War. From 1939 onwards, the war reduced unemployment because individuals were needed for military rearmament, making weapons. The military rearmament took precedence over the New Deal, and in order to get support for this from conservatives, Roosevelt had to cut down on the New Deal. Therefore, the war was the reason that the US’s economy recovery and not Roosevelt and his policy. However, during the first 100 days in office, Roosevelt was determined to act fast. He stabilised the banking system through the passage of the Emergency Banking Act, which initiated a national banking holiday, closing down all of the nation’s banks for 4 days to prevent them from collapsing. As well as this, Roosevelt set up ‘fireside chats’ which were radio broadcasts about the banks to directly inform individuals about his actions as well as to give individuals hope and restored public confidence in the Government. Therefore, the New Deal was important in the economic recovery of the USA because he enabled people to have faith in the banks, and invest money into them. Another reason why the New Deal was important for the economic recovery of the USA was due to the ‘alphabet agencies’, which were public...
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