Reasons Why Roosevelt Introduced the New Deal
There were three main reasons why Roosevelt introduced the New Deal.
The first was economic and social problems in the USA, as a result of
the Wall Street Crash. The second reason was because of Hoover, the
president before Roosevelt; had been a weak president, and could not
solve problems, and often made problems worse. The third was that
Roosevelt strongly believed he could help America recover, like he
himself has done when he caught polio.
One of the reasons why he introduced the New Deal was because of the
problems in the USA. The Wall Street Crash in 1929 affected the USA
both socially and economically. This sparked off the Great Depression.
Factories were being closed, production fell, and people lost their
jobs. Because of this trading of goods stopped, so the Depression
affected other countries as well. Socially it was affecting people's
lives, and people were often seen in Bread Lines to get basic food
rations. Homeless people began to build Shanty Towns, which became
known as 'Hoovervilles'. Unemployment was now at its highest in 4
years. In 1929, only 1.6 million people were unemployed, but by 1932
over 12 million people were unemployed. When Hoover tried to solve
things it made no difference, or in some cases made it worse. In 1930
he put taxes on good imported to America, so that instead of buying
foreign goods, which would now be dearer, people would buy America's
own goods. However this did not work; because other countries then put
taxes on products coming from America. The ex-WWI soldiers were
promised a $500 bonus, and in 1932, 25 000 people marched into
Washington DC, and demanded their bonus payments, even though they
weren't payable until 1945. These marchers became known as Bonus
Marchers, and all of these problems needed to be solved by Roosevelt.
Another reason why he introduced the New Deal was because of Hoover.
Hoover was a weak president, and couldn't deal with America's
problems. He tried to solve this problem with protective tariffs
(putting taxes on imported goods), but this was unsuccessful and made
problems worse. He also tried introducing a 'Welfare State', but not
many people agreed with this, because a welfare state runs off
workers' taxes, and employment was so low that not enough tax was
being paid, meaning there would be no money for Hoover's Welfare
State. Hoover also tried to promote the employer's 'give-a-job'
scheme. This was where employers were encouraged to give jobs to
unemployed people, instead of the government funding new jobs. This
scheme failed as well. He...