Reasons Why Roosevelt Introduced the New Deal

Reasons Why Roosevelt Introduced the New Deal

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Reasons Why Roosevelt Introduced the New Deal President Roosevelt introduced the New Deal because of the economic
problems facing America. It was also because of the weaknesses of
former president Hoover’s presidency, and also the role of Roosevelt’s
and the Republicans in the USA. I actually think that Roosevelt
actually introduced the New Deal because of his and the Republican
role in America.
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There were a lot of problems facing America during the late 1920s and
early 1930s.The wall street crash was one of those factors, which was
a problem for America. The social consequences of the Wall Street
crash were that the USA was supposed to be the land of opportunity,
where the good life was available for those who wanted to work, but
finding work was a problem. The numbers of unemployed increased by the
day, in 1929 it as 1.6 million people unemployed, in 1930 it was 4.3
million people unemployed, in 1931 it was 8 million people unemployed
and then in 1932 it rose to 12.1 million people unemployed. Families
lost their homes or were forced to split up when parents lost their
jobs. Soon unemployed people looked for handouts of food and became a
major feature of city life. Millions of destitute people wandered the
streets looking for food, work or somewhere to stay, and then
shantytowns were built for the homeless. By 1932 money to help the
poor was running out. In June Philadelphia had to cut off relief funds
to 50,000 families. The situation seemed hopeless for America.
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The financial and economic effects of the Wall Street crash were
simple to say that the Wall Street crash caused the great Depression.
The Wall Street crash sparked of the great Depression, the American

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economy went in to a vicious spiral of bankruptcy, Slumping production
and unemployment. Which devastated normal economic life, first America
then the rest of the world, the destruction of international trade.
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This occurred because businesses needed money. They had to buy raw
materials, equipment and machinery. They had to pay wages. Many people
lost a great deal of money so they started to spend less. So companies
started to produce less stock so they needed less workers.
Unemployment rose rapidly. Borrowing money wasn’t easy, 5,000 banks
closed in the three years of the Crash. As money disappeared,
industries shut down. By 1932 a quarter of the working population was
unemployed. The economy was ceasing to function. The impact of the
depression was also a big problem for the USA. The depression, the
Wall Street crash, bankrupted many. As banks went bust, people lost
their savings. Companies closed, workers became unemployed. A vicious
circle began as sales fell more became unemployed. The public lost
confidence there was a total loss of confidence in the economy. As no
one spent money, demand fell and industries suffered. By 1933
industrial production had fallen by 40% and unemployment reached 14
million. People were homeless so they built shantytowns built up of
cardboard shacks and they became sarcastically nicknamed Hoovervilles.
Farmers in the Depression saw a collapse in prices. Many, unable to
keep up loan repayments were evicted and forced to leave. The
situation for farmers in the mid west was made even worse. Over
cropping led to a dust bowl. Farmers from Oklahoma went to California
to find work. The bonus marchers, a crisis point was reached in the
summer of 1932. Since May, destitute veterans and their families had
been arriving in Washington DC and demonstrating for the bonus payment
that had been promised to them by an act passed in 1924. The bonus was
around 500, but not payable until 1945, but the veterans wanted it
now. So the veterans started to gather, Hoover knew that they were a
threat, so he ordered for them to be evicted. They wouldn’t move so he
called the army in and threw them and their families out of the city.
President Hoover had a lot of problems in America that he could not
solve. So Roosevelt had to solve these problems, so therefore he had
to introduce the New Deal.
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President Hoover couldn’t deal with the problems facing America.
Hoover had many weaknesses and was in capable of solving the problems
facing America. He made false accusations that there was no one in
America who was staving but 5 thousand were. 250,000 people wanted
pension, they started protesting peacefully out side the white house
but Hoover called in the army to get rid of them. President Hoover was
known as a UN carrying bully who had his own beliefs and acted far too
late. The Republican Party was believed that they were not going to
help the Americans during an economic crisis. The failure of Hoovers
attempted schemes showed us that it made it possible for Roosevelt and
the republicans to do well in the 1932 presidential election.
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Franklin D. Roosevelt came from a privileged background, the only son
in a wealthy Old Dutch family from a New York state. Nothing in his
early life indicated what he would eventually achieve. He was a fairly
aimless student, both at school and at Havard University. He worked
for a law firm, but wasn’t too good at it. He was a typical rich boy;
looking for a purpose in life he found politics. A distant relative of
ex president Theodore Roosevelt, he had social contacts so he made
rapid progress in his chosen career. He was first elected state
senator of New York in 1910; by 1913 he was assistant secretary to the
Navy in Wilson’s government. In 1920 he ran for vice presidential
candidate, unfortunately for him 1920 was a republican landslide,
which saw Harding elected president. Then in 1921, Roosevelt caught
polio, which left him fighting for his health, but he refused to allow
his illness to force him out of politics. In 1928 he felt strong so he
ran for governor of New York State, and by a narrow margin. President
Roosevelt took vigorous action to help the unemployment in his state,
setting up a Temporary Relief Administration, which used public money
on schemes to create employment- a forerunner of the ideas he would
later implement as president. To many people, it seemed clear that
Roosevelt’s lengthily illness had given him some sympathy for problems
for ordinary people in America. The public knows that Roosevelt is
someone who will do whatever it takes to keep the American people
happy.
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The most important factor, I think was how Roosevelt dealt with
unemployment because millions of people were out of work and because
of this people became homeless. This was very important.
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I think Roosevelt introduced the new deal to help America through all
the problems in the 1920s and 1930s, like the Wall Street crash and
the great Depression.
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