To what extent was the New Deal effective in solving the problems created by the Great

Depression?

The problems within American society caused by the great depression were solved due to a
multitude of various factors, however, FDR's new deal made progressive improvements and can
be acknowledged as a critical component in minimising the problems caused by the great
depression. Through the establishment of government agencies that provided welfare for
Americans at an attempt to relieve the hardship of the great depression as well as tighter
government regulation of the economy and an expansion of public works that help stimulate the
economy.

The new deal did not completely solve the great depression, but it did restore the trust between
the American people and their government after the widespread feeling of betrayal Herbert
Hoover had left. Historian Jim Powell states ​“The economy produced more than it consumed
because the consumers did not have enough income. Thus the unequal distribution of wealth
throughout the 1920s caused the Great Depression.” T ​ his unequal distribution of wealth was
due to the Republican policies that championed big businesses and left behind the lower and
middle classes that made up the majority of America. Once the banks failed, Americans could
no longer support the consumeristic lifestyle that had previously developed the Economy as well
as provided millions of Americans with jobs. By 1932 25% of the workforce was unemployed,
however, the Republican government was not willing to accept the failure of Herbert Hoover's
ideology of ‘American Exceptionalism’. Americans were no longer exceptional and were now
victim to the greatest economic crash within their history. Herbert Hoover and the Republican
government failed to act according to the needs of the American people, and Franklin D
Roosevelt won by a landslide in the 1932 election.

FDR's famous inauguration speech represents his presidential commitment that was created the
sense of trust within the government that had been absent since the depression hit. ‘I pledge
you, I pledge myself, to a new deal for the people.’ This quote from his acceptance speech
reflects FDRs complete devotion to solving the problems of the great depression. He began his
presidency in 1933, and his willingness to try anything to relieve some of the negative impacts
of the Great depressions created a sense of hope within the American people, starkly
contrasting HH stubborn nature against change. The first 100 days of FDR in office resulted in
15 major bills being passed through congress which established the basis for the New Deal.
The first 100 days of FDR's presidency and the bill he passed in this time frame were based
upon the need for Relief, Recovery and Reform, known as the 3 R’s. Relief was for the
unemployed, substantiated through the federal emergency relief act. This act provided direct
relief, training and work for unemployed Americans. Recovery was for the economy, through job
creation and federal spending. The Civilian conservation corps was a program that put 250,000
men to work into rural conservation projects. This program created jobs and also helped
encouraged Americans to get outside and enjoy natural resources. The CCC built
campgrounds, planted over 3 billion trees and constructed trails and shelters. FDR wanted to
reform capitalism within America, as the previous Republican economic policies championed big
businesses and left out the middle and lower class. FDR wanted to reform the financial system
that had evidently failed Americans, and by doing so attempt to ease the economic crisis that
was everpresent. The securities and exchange commission was a permanent agency set up to
monitor stock market activity and to ensure no fraud or insider trading was taking place. This
continues to regulate US stock markets today. Within the first 100 days of FDR's presidency,
these ‘Alphabet agencies’ focused on relief, recovery and reform indicated a strong desire to
solve the problems the American people were facing due to the great depression.

In 1935, the economy began to stabilize, and the ‘second’ New Deal began, introducing both the
National Labour Relations Act and the Social Security Act. The second part of the new deal
shifted the focus away from recovery and towards economic security. The National Labour Act
(also known as the Wagner Act) protected the rights of workers, allowing them to unionise and
also established a labour board to settle disputes over unfair labour practices. In 1934 alone
over 2000 workers strikes took place due to the unfair employment conditions. Eric Foner states
‘ Unions helped to stabilize a chaotic employment situation and offered members a sense of
dignity and freedom.’ ​ Employers took advantage of the widespread desperation for Jobs and
through unions, fair wages and safe conditions were demanded. This act plays a critical role in
resolving the problems of the depression, as Elanor Roosevelt states ‘ ​The only way to preserve
our market is an adequate wage’ w ​ hen considering the economic downturn caused by
underconsumption that contributed the the Great Depression, raising workers wages, in turn,
stimulates the economy and prevents future economic failures. The Social Security Act of 1935
further contributed to the cessation of the depression and transformed the relationship between
the American Federal Government and the American people. The act ensured unemployment
insurance, aid to the disabled, aid to poor families and retirement benefits. The state became
much more present within peoples lives, evident in the Works progress administration (WPA),
which put 8.5 million Americans to work. Evidentally, the Wagner and Social Security Acts
created in the 2nd New Deal further ceased the problems caused by the Great Depression.

Despite the many improvements FDR's New Deal made for the majority of the American people,
many minorities were left out, as the democratic party had a strong southern presence, many of
whom became important legislative leaders. Without these leaders, FDR could never have
passed many of the new deal laws, however, due to the inherently racist south, many of the
leaders expected White people to dominate the government and economy. They insisted local
administration of many of the new deal programs, and therefore many African Americans did not
reap the benefits of the new deal. The social security act excluded categories of workers that
were predominantly African American lead, such as agricultural labour. The Federal Housing
Authority refused to guarantee mortgages for African American who tried to buy houses in white
neighbourhoods, and the Civilian Conservation Corps maintained segregated camps. For
African Americans and many other minorities, the New deal did not alleviate the Great
depression and the problems it presented. It wasn't until President Johnson's ​War on Poverty ​in
the 1960s that minorities experienced relief from the depression.
There is no doubt that the programs implemented by FDR during the New Deal relieved many of
the problems the Great Depression. By 1940 employment had reduced by 10% from when he
first stepped into office in 1933, down to 15%. The New Deal changed the expectations
American people had for their government, as Eric Foner states it ‘​Made the government an
institution directly experienced in Americans daily lives and directly concerned with their
welfare.’ I​ t may not have completely solved the Great Depression but as Foner states, the
involvement of government into the welfare of the people is an invaluable change within the
structure of the American government, and although the Great Depression was not considered
completely obsolete until America's involvement began in the second world war, the New Deal
reshaped the standard of Government. Through the implementation of the New Deal, FDR
created a ‘Social Safety Net’ for the American people that continues to influence the nation
today.