QuestionB: explain the main features of the new deal
The "First New Deal" in 1933 was a group of short-term recovery programs for various different groups. The Roosevelt administration created new banking reform laws, emergency relief programs, work relief programs, and industrial reforms (the NRA), as well as ending prohibition.
The "Second New Deal" (1935–36) included labor union support, the WPA relief program, the Social Security Act, and programs to help farmers and immigrant workers. The American Supreme Court decided that many of the programs were ‘Unconstitutional’ These were soon scrapped and replaced.
The New Deal was a created a large change in political policies in America. One of the more lasting changes it caused was the increase of the economical control that the government was given concerning America’s money supply.
The initial crash of the stock market happened on the 24th October 1929. On the 29th October, the stock market fell even more than it had the week before. From then till 1933, unemployment in the U.S. increased from 4% to 25%, manufacturing exports went down by over a third. This caused prices to rapidly fall and cause deflation. This made debt repayments a lot harder to pay off. The main export industries such as lumber, coal and steel and farming industries were heavily affected by the drop in general prices.
Roosevelt entered office with more than one ideology or plan for dealing with the great depression. In the "First New Deal" (1933-34) many organized liberal groups (except the Socialist Party, which was virtually destroyed gained much of what they had demanded. This "First New Deal" was thus a blend of self-contradiction, pragmatism, and experiment. The economy eventually recovered from the low point of 1932, with sustained improvement until 1937, when the Recession of 1937 brought back 1934 levels of unemployment. Whether the New Deal was responsible for the recovery, or whether it slowed the recovery, has been...