How Successful Was the New Deal?​

the overall evaluation of the new deal

Achievements regarding unemployment

• 1929: ​3.2%​​ (1.55 million)

• 1933: ​24.9%​​ (12.83 million)

• 1939: ​17.2%​​ (9.5 million) — New Deal Era

• 1941: ​9.9%​​ (5.56 million) — WWII Impact

1: RECOVERY

• Achievements:​​ Farm income rose from ​​2.6bn to 4.6bn​ annually. Farmers had received $4 billion of direct help from the government. The ​RFC​ helped ​6,000​ banks reopen.

• ​Shortcomings:​​ Farm income rarely reached 1929 levels. ​106​ banks that received aid still failed. A deep ​recession in 1937-38​ occurred when spending was cut.

2: RELIEF

• Achievements:​​ The ​WPA​ employed ​8 million. ​35%​​ of the population received direct relief. Built new infrastructure.

• ​Shortcomings:​​ Work relief helped only ​~40%​​ of those in need. Relief varied by state. Little social housing was built. When spending was cut in ​1937, unemployment rose by ​~5%​.

3: REFORM

• Achievements:​​ Established ​Social Security, recognized unions (Wagner Act), set minimum wage/hours (Fair Labor Standards Act). The ​REA​ increased farm electrification from ​10% (1930)​​ to ​40% (1945)​.

• ​Shortcomings:​​ ​Social Security​ excluded agricultural/domestic workers. Did little to reduce the rich-poor gap. The ​1935 Revenue Act​ (to tax the rich) was weakened by Congress.

Impacts on Women

• Achievements: More political influence via Eleanor Roosevelt. ​WPA's Women's Division​ provided specific help.

• Shortcomings: Earned ~half​ of men's wages (1937). ​CCC​ created ​2.5 million​ jobs for men vs. ​5,000​ annual places for women. Number of women in professional jobs fell from 14.2% to 12.3%

Impacts on Black Americans

• Achievements: The ​​"Black Cabinet"​​ gave black people more political power. ​30%​​ of Black families received relief.

• Shortcomings: The ​AAA​ displaced Black tenant farmers and NRA caused many black people to lose their jobs. Most Black workers had no Social Security access and were paid less relief. ​

Impacts on Native Americans

• Achievements:​ Indian Reorganization Act (1934)​​ restored ​7.4 million acres​ and granted self-governance.

• Shortcomings: Many remained very poor. Reliance on the agencies (like WPA) left them vulnerable when they closed down.

The Role of the Second World War

• ​Lend-Lease Act (1941)​​ created massive demand as it allowed the US to sell military supplies to the Allies.

• Farm income rose ​~50%​​ (1939-41).

• US exports grew ​over 70%​​ in the war's first three years.

• People relied on work relief fell from ​3.3 million (1939)​​ to ​2.2 million (1941)​.

verdict

The New Deal provided essential ​Relief​ and lasting ​Reforms, but achieved only partial ​Recovery. It eased the pain of the Depression but depended on government spending. Long-term economic recovery was ultimately achieved by the ​Second World War.