(3a) The New Deal and the economy

Question 1

what do many people argue the new deal fail to achieve

Answer 1

Many have argued that the New Deal failed to achieve its aim of stimulating the economy.

Question 2

why do Many argue that the New Deal failed to achieve its aim of stimulating the economy?

Answer 2

The national total of personal income: 1929 $86 billion; 1929 $73 billion
Average wages: 1929 $25.03 a week; 1939 $23.86 a week

Question 3

what do many people believe led to economic recovery as opposed to the new deal

Answer 3

Many agree that the real reason for economic recovery was the demand for war materials and munitions from the nations that entered WW2 in 1939.

Question 4

1929: unemployment

Answer 4

never rose above 3.2%

Question 5

1932 national wage bill

Answer 5

only 40% of 1929 figure

Question 6

1933 unemployment

Answer 6

rose to 25%

Question 7

1936 unemployment

Answer 7

17%

Question 8

1937: During the second New Dea

Answer 8

14%

Question 9

1938: Spending cuts led to Roosevelt Recession, around

Answer 9

19%

Question 10

1939: End of the New Deal and start of war time economy

Answer 10

17.2%

Question 11

1940: War time economy

Answer 11

14.6%

Question 12

1944: Unemployment at

Answer 12

1.2%

Question 13

significance of alphabet agencies

Answer 13

For the first time ever the federal government was actively engaged at bringing help and assistance to the unemployed via alphabet agencies such as the PWA and WPA.
These works programmes were created in the hope that these alphabet agencies would ‘kickstart’ the economy.

Question 14

limitations of alphabet agencies

Answer 14

In reality, the alphabet agencies provided short term employment. Many Americans at the end of their time working for the agencies returned to being in part-time work, or at worst, unemployed.

Question 15

how did the new deal ensure future success of the us economy

Answer 15

the New Deal did prevent the total economic collapse of America and lay the economic foundations that supported the rapid economic growth in the Second World War which was more sustained.

Question 16

III The impact of the New Deal on national infrastructure

Answer 16

Although the New Deal did not lead to full economic recovery, it did transform national infrastructure - and the alphabet agencies were a significant part of that.
By the end of the New Deal, the road network of America had been transformed as had the school system and hospital provision.

Question 17

impact of the WPA

Answer 17

WPA: 1935 - 1943 workers built 2,500 hospitals, 5,900 schools, 350 airports, 570,000 mile of road and 8,000 parks.

Question 18

TVA

Answer 18

The TVA of 1933 built dams that provided power both domestic and industrial use, transforming and modernising the lives of many Americans, and bringing electricity to many in the Tennessee Valley for the first time.

Question 19

impact of new industries on farms

Answer 19

New industries were also encouraged to locate to these rural areas and by 1941, 40% of American farmers had access to electricity increasing to 90% by 1950