Essay about Main Features of The New Deal

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Main Features of The New Deal

In 1929, the stock market collapsed causing a worldwide economic depression, destroying America’s economy with many people losing their life savings therefore thrusting them into unemployment and poverty. Unemployment reached highs of over 13 million whilst the GNP for the country reached as low as $58 billion, compared to the $100 billion+ pre depression figures, because demand and production fell so dramatically. People were forced out of their homes and moved to shantytowns known as ‘Hoovervilles’. The president in power at the time, J. Edgar Hoover, refused to use the government funds in order to help the American people. He believed that America was a land of
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The main features of the New Deal were what are known as the alphabet agencies as they all their names were reduced to acronyms, which were government, funded and employed many people. Each agency had specific responsibilities to help get America back on track. The initial agencies were: Federal Emergency Relief Administration, Civilian Conservation Corps, Public Works Administration (which later became the Works Progress Administration), Agricultural Adjustment Administration and the Tennessee Valley Authority. Another feature of the New Deal was the various acts passed, which were: The Emergency Banking Act, Securities Exchange Act and the National Industrial Recovery Act.

The first thing Roosevelt did as part of his New Deal was to pass the aforementioned Emergency Banking Act which declared a bank holiday and closed all banks for at least 8 days. During those 8 days, government workers investigated the banks reopening only those that were deemed reliable, sound and safe. Soon they officially opened 5000 banks reassuring Americans that their money was indeed safe. This helped solve the depression partly as it helped return some confidence to the Americans, which meant that more people would spend or invest money. This was a huge success because as soon as the banks had re-opened, over $1 billion was deposited back into them.

While this was taking place, Roosevelt
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