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How Did The New Deal Strengthen The Usa Capitalism

Decent Essays

The New Deal

a) In 1933, the new president of America, Franklin D Roosevelt, introduced The New Deal. He did this because of America's economic depression at the time.

For example, many banks went bankrupt in the Wall Street Crash. This happened because, during the economic many people got involved in the stock market, especially in speculation. This was where you would buy lots of stocks with a loan, then way for them to rise slightly, and sell them off again, making a quick and easy profit. Many banks got involved in speculation, but people started to lose faith in the stock market, so everyone started to sell their shares. This meant that there were much more sellers than buyers which …show more content…

Another reason for Roosevelt to introduce the new deal was because of the human cost of the economic depression. Farmers were hit worst by it, most of the farmers were unable to pay of their mortgages, and so banks came to seize their homes. Many farmers were forced to give up their work, and their homes, and had no option but to go and live on the road, trying to get work where ever, and whenever they could. Also, for some farmers that did survive, they farmed to much on their land, and the lack of water meant that the soil because infertile and useless.

Roosevelt had to do something, to get the faith and support of the people of America, as Hoover had just watched the impression, saying that nothing could be done.

b) The New Deal was setup, with several agencies aimed at helping different social groups.

To help the farmers, there was the Agricultural Adjustment Administration, Farming Security Administration, and the Resettlement Administration.

The AAA, looked at the long term problems for farming, they taught farmers ways in which they could preserve fertility in their soil, and setup quotas to push the value of farmers goods gradually upwards. In extreme cases they would even help farmers with their mortgages.

The RA helped small whom the AAA hadn't helped. They moved over 500,000 famillies to better land.

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