New Deal Dbq

The Great Depression, which set its sights upon the US in October of 1929, ravaged the American economy. High unemployment, a loss in corporate profits, along with a trend in deflation caused the longest lasting and most severe depression in US history. FDR sought to combat the depression through a program of government sponsored attempts to provide relief for the population, recovery of the economy, and reform of financial institutions so that an incident such as the depression would not repeat itself. While the expansion of the role of government initiated by the New Deal programs were effective in reforming the flawed institutions of the US economy they were only somewhat effective in providing relief for the masses while providing little

Beginning with bank reform, the New Dealers were able to maintain oversight in the banking industry, which had previously been an unregulated and unpredictable source of capital. The Glass-Steagal Act and the Emergency Banking Act signaled a shift from a lassiez faire approach to the banking industry to one that ensured banks were making responsible loans and not gambling with depositor’s savings in the stock market. By not allowing banks who were considered “irresponsible’ to reopen and separating the savings and investment functions of the banks, a more secure system began to emerge. The impact of this legislation was immediate, as bank failures dropped dramatically. Additionally, major breakdowns in the banking industry were avoided until fairly recently, which came as a result of the repeal of Glass-Steagal. FDIC was also established, assuring investors that their money was safe, avoiding ruinous runs on the banks in times of crisis. The establishment of the SEC, a stock market watch dog, also reformed stock market practices by reducing the tendency of traders to use the market as a gambling ring by regulating Wall

The creation of agencies such as the CCC, PWA, and the WPA provided many Americans with a paycheck for government sponsored public works projects. These paycheck allowed many to afford food and other essential services. Soup kitchens and other forms of relief were provided through federal funds to the states through FERA. Some attempts were also made by the federal government to ensure that individuals were able to remain in their home though the HOLC program. However, much of this relief was aimed at the white urban male population. Black American’s financial situation was largely ignored, as were those of working class women. Blacks were the last hired and first fired adding to their plight; the government did little to remedy this situation. Women were driven out of the workforce and into deeper poverty because they were seen as taking jobs away from men. Additionally, the plight of the American farmer in the dust bowl went unresolved, as many migrated to California in search of some kind of relief. Furthermore, the mass appeal of men like Huey Long and Father Coughlin, who offered unrealistic remedies to people’s troubles, was a testament to the continued widespread suffering of the people who were not feeling