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.
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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 Use’s economy recovery and not Roosevelt and his policy. However, during the first 100 days in office, Roosevelt was determined to act fast. He stabilized 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 erectly 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 work schemes to help agriculture, Industry and unemployment.
An example of an alphabet agency was the AAA (Agriculture Adjustment Administration) which was set up In 1933. Farmers were given subsides to cut back production of crops, meat and dairy products. This aimed at Increasing prices of farm produce by reducing overproduction. Another agency was the ICC (Civilian Conservation Corps) which was Introduced In 1933 with the alma of providing employment for young unmarried men aged 18-25 In conservation work, such as creating parks and planting trees. More than 2 million young men were employed between 1933 and 1941.
This agency reduced employment, meaning that Individuals ere earning money to feed their barnacles- and helping them out of the depression. Therefore, the New Deal aided economic recovery Introducing agencies that Increased the wages of farmers as well as employment for young men. To conclude, the New Deal was Important to the economic recovery of the USA In the years 1933 to 1941 because It gave Individuals the faith the trust banks again. As well, the New Deal reduced unemployment through the schemes and agencies Introduced, helping combat the depression.