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Impact of the New Deal
In the 1930’s Ed Johnson the Governor of Colorado argued that the New Deal was the “worst fraud
ever perpetrated on the American people” while this may extreme it can be seen that the actual
achievements of the new deal are rather slender
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One in five
Americans needed some form of relief and wages averaged $2 less than in 1929
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Furthermore prices fell fast than wages meaning that people could buy more for their money
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It is true
that the funds allocated for relief were inadequate, nevertheless they set an important precedent
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There was also growth of the expansion of welfare provision before
1930 virtually nothing was spent on welfare provision by 1940 $479 million
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Recovery
The New Deal was less successful in achieving economic policy
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Roosevelt believed in a balanced budget and was reluctant to spend excessively
on federal project even though it was necessary
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8 billion for public spending it was not enough
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g
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In the later years of
the new deal he was annoyed with big business because of its ingratitude but he never doubted that
the answer lay in the hands of large corporations and maintained his faith in fiscal conservatism
rather than permanent massive state spending
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E
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reform of the banking system-greater regulation
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His reform of the supreme court failed
but the court nevertheless became more sympathetic to new deal policies
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Social Security act and relief and job
creation agencies
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Race and Gender
African Americans-Roosevelt needed the vote of the southern democrats, early in the deal they
were his most fervent supporters and therefore the new deal had little civil rights legislation
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African Americans had been particularly badly affected by the depression they were the last to be
hired, first to be fired and the poorly paid menial work they had done had been taken by whites
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The CCC was run by a southern racist who did little to
encourage integration and anti-lynching bills were defeated in congress
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In Harlem he had 36% of the vote
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Eleanor Roosevelt was also determined to
stop racism and ensured that racial problems were explained to her husband
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Roosevelt set up the fair employment practices committee but this was to stop the
brotherhood of sleeping car porters from staging a protest
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In conclusion Roosevelt used
gestures of support rather than official measures and although the his policies in general favoured
whites, Roosevelt’s policies were at least a start
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Many prominent women expertise in social work which drove new
deal measures, unfortunately when war broke out priorities were diverted and influence was lost
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Impact of 2nd World War
Despite fears there were only two bombing raids on the USA during WW2
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Although Roosevelt still had impact post-death due to the research that he had begun in 1939 into
nuclear weaponry
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In 1940 it became illegal to threaten to overthrow the
government of the USA under the Smith Act aimed at fascists and communists
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Economic effects
Made the new deal irrelevant- farm income grew by 250% and unemployment effectively ceased,
60% of women became employed and African American employment particularly in federal
government massively expanded and GNP rose to $166
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But the office of war mobilisation
tightly controlled food prices and rent and rationing was introduced
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