Was the New Deal a Failure? (AQA GCSE History)

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Zoe Wade

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Zoe Wade

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History

Why do Some People Consider the New Deal a Failure? - Summary

Some people consider the New Deal a failure. They argue that it didn't fully end the Great Depression. The New Deal brought relief to many people through programmes like job creation and financial help but Unemployment remained high for years.

Critics say the New Deal extended the Depression. The US government intervened in the economy by adding regulations and increasing government spending. Opponents of the New Deal stated that this disrupted the natural cycle of supply and demand.

Some people argued that the New Deal made the government too powerful and expanded its role beyond what was appropriate. Roosevelt abandoned laissez-faire attitudes and his government controlled many aspects of business. Business owners believed these actions undermined individual freedoms and free-market principles.

Many historians argue that the Great Depression only ended with the Second World War. The US economy recovered by selling goods to the Allies. The USA also made a significant amount of money from the Lend-Lease Act in 1941. In addition, the production of military supplies created jobs.

Successes of the New Deal

  • The New Deal had some overall successes which impacted most people in the USA. It:

    • Improved banking regulation

    • Built trust in the government

    • Created a national welfare system

Hand holding money, text on blue box: "The New Deal improved regulation for banking. Roosevelt invested the money needed to help the economy to recover." Text on green box with fireplace: "Roosevelt's 'fireside chats' rebuilt people's trust in the government." Text on pink box with hand holding heart: "Roosevelt created a national welfare system. Before the New Deal, the USA was the only developed, Western country without social security."
An illustration showing the nationwide successes of the New Deal

Benefits of the New Deal

Group

How did the New Deal Benefit this group?

The unemployed and the poor

The US government gave millions of dollars in support to those facing poverty, homelessness and hunger

The TVA created work and improved the standard of living in poorer parts of the USA

After 1935, many vulnerable people in society benefitted from the Social Security Act

Male workers

The Alphabet Agencies created millions of new jobs for workers

The NRA improved workers’ pay and hours

The National Labor Relations Act encouraged trade unions. It attempted to stop employers from treating their workers unfairly

Women

The WPA in the Second New Deal employed women 

Roosevelt appointed Frances Perkins as the Secretary of Labour. She was the first woman in history to have a cabinet job in the US government

Farmers

Large-scale farmers received support 

The AAA reduced the number of farmers losing their land and improved profits

The TVA improved productivity in the Tennessee Valley. It helped the area to recover from the Dust Bowl

African-Americans

The New Deal gave jobs to African-Americans

After 1935, African-Americans received relief cheques from the government

Before the Depression, many black Americans supported the Republican Party. It was the political party of Abraham Lincoln that abolished slavery. After the New Deal, more African-Americans supported the Democrats

Failures of the New Deal

Failures of the New Deal

Group

How did the New Deal Disadvantage this group?

The unemployed and the poor

By 1939, 9.5 million US citizens remained unemployed

Some people became reliant on government support

Male workers

The New Deal benefitted skilled workers more than unskilled workers. People became annoyed at boondoggle jobs

Some employers did not respect the New Deal and blocked workers from joining trade unions

Women

Agencies like the CCC only specifically helped young men

The WPA mainly gave women unskilled jobs

The NRA purposefully set wages lower for women than for men

Farmers

Smaller farmers did not receive much benefit from the New Deal

The AAA encouraged farmers to produce less. This forced many sharecroppers to leave farming and head for industrial cities to find work

Despite the TVA bringing electricity, farmers continued to have a low standard of living

African-Americans

Many African-Americans continued to work in low-paying jobs

The NRA paid black workers less than white workers

The CCC had segregated camps for black workers

Support for an anti-lynching bill increased when 63 black people were lynched in the South. Roosevelt refused to pass this bill. He needed the support of southern Democrats who supported white supremacy

A third of all African-Americans became reliant on the government’s relief payments

Worked Example

How does Interpretation B differ from Interpretation A about President Roosevelt’s New Deal? Explain your answer based on what it says in Interpretations A and B. 

[4 marks]

Interpretation A: John Gates, in his book ‘The Story of an American Communist’ published in 1959. In the early 1930s Gates was a student. He had discovered the writings of Karl Marx in which he said that ‘he found the answers to the causes of the Depression, socialism and a world brotherhood of man’. Soon afterwards he joined the Young Communist League

“We planned a demonstration of the unemployed during President Roosevelt's inauguration on March 4, 1933. I was chosen to open the demonstration and was arrested because we didn’t have a permit to hold it. Listening to the broadcast when I was in jail, it did not sound exactly like a New Deal to me. I did not believe the President and had no confidence in him. He announced the closing of the banks and the introduction of a New Deal for the American people. It sounded to me like a possible dictatorship”

Interpretation B: Rexford Tugwell in his book ‘The Democratic Roosevelt’ published in 1957. Tugwell was a member of the Democratic Party and a close friend of Franklin D Roosevelt. In 1932 he joined a team to advise Roosevelt during the presidential election. Roosevelt consulted Tugwell about the banking crisis and the New Deal

“When Roosevelt died our society was much further forward than when he became President. It is true that there was a change from the old rugged individualism and laissez-faire ideas towards more government regulation. And a move away from individual responsibility for sickness, unemployment and old age to security for all. This helped those with the least power to bargain. We are a lucky people. If it had not been for this democrat we might have fallen to a dictatorship. For that was being talked about when he took charge.”


Answer:

Interpretation B differs from Interpretation A in their New Deal. Interpretation A has a negative opinion of Roosevelt and the New Deal (1).  Gates judged Roosevelt as a dictator when “He announced the closing of the banks and the introduction of a New Deal.” This shows that some people viewed Roosevelt’s actions as going too far. They were worried about their freedoms being taken away from them (1).

Interpretation B has a more positive opinion of the New Deal (1). Tugwell argues that Roosevelt and the New Deal brought US society “much further forward than when he became President”.  This shows that some US citizens liked the government taking a more active role in businesses and the happiness of the people (1).

Exam Tip

This style of question will always provide two interpretations to read and assess how they are opposing. Remember to state the difference between the interpretations and use evidence in the form of quotes to back up your observations. 

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Zoe Wade

Author: Zoe Wade

Zoe has worked in education for 10 years as a teaching assistant and a teacher. This has given her an in-depth perspective on how to support all learners to achieve to the best of their ability. She has been the Lead of Key Stage 4 History, showing her expertise in the Edexcel GCSE syllabus and how best to revise. Ever since she was a child, Zoe has been passionate about history. She believes now, more than ever, the study of history is vital to explaining the ever-changing world around us. Zoe’s focus is to create accessible content that breaks down key historical concepts and themes to achieve GCSE success.