How important was Roosevelt’s New Deal in Ending the Depression?

1938 WordsJul 14, 20188 Pages
The Wall Street Crash of 1929 marked the start of the great depression which hit America and much of the industrialised world during the 1930’s. The cycle of prosperity turned into a spiral of depression as consumer spending fell by almost half, unemployment rose to over 12 million and there was widespread poverty and homelessness. The Hoover government’s ‘rugged individualism’ meant that people did not receive any relief from the federal government and led to a loss in support for Hoover as people blamed him for their problems. After his landslide victory in 1932, President Roosevelt vowed that through his reforms and economic policies, America would return to the road of prosperity. In 1933 he set out the ‘New Deal’ which sought to…show more content…
The third goal of the New Deal policies were to reform the system, particularly the banking and financial sector, to curb bad lending practices, poor trading techniques, and corruption. (Source H) displays people rushing to take their money out of the banks after the crisis. The president’s decision to take the country off the gold standard proved to be a smart move because it boosted people’s confidence in the U.S. dollar. The Federal Deposit Insurance Corporation, created under the Glass-Steagall Act, eliminated untrustworthy banks that had plagued the country for more than a century. Once Americans became confident that their funds would be safe, the number of bank deposits surged. Likewise, the Securities and Exchange Commission in 1934, which weeded out bad investment habits, gave Americans more confidence in the stock market. Legislation such as The Social Security Act of 1935 was a social welfare legislation which attempted to mitigate the effects of old age, poverty, unemployment, and the burdens of widows and fatherless children. It was a breakthrough as it built the foundations for a social state which could protect the security of vulnerable Americans. Still, many criticised the Social Security system for not extending pensions to enough people, particularly unskilled black and women labourers. For many Americans, such as black people, the Depression worsened the already bleak economic situation. They were the first people to be fired from their jobs and

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