Causes Of The New Deal

1070 Words 5 Pages
The Great Depression was a period of time in America when many people lost their jobs and the unemployment rate in America peaked at 25% for whites and 50% for blacks and latinos. People were struggling to even receive one meal each day and the overall situation of these people was very grim. One long term cause of the Great Depression was the fact that stock market brokers would buy on margin, where the broker pays 10% and the bank pays the rest, and speculation, a risky move where brokers buy a stock because they have potential to raise in price so they sell it within a short span of time. Another long term cause of the Great Depression was the immense panic that caused a high demand for withdrawals in banks, which then caused the banks to …show more content…
The AAA was a program that paid farmers to stop farming so that the crops they grew would increase in demand and therefore, increase in price. This proves that the New Deal was a success because farmers were given compensation for overproducing and could again sell their crops for a reasonable price and make a proper living. The Social Security Admin was also another program that proves that the New Deal was a success. The Social Security Admin gave financial aid to elderly, disabled, and children that may have lost a parent. This proves that the New Deal was a success because the elderly could be taken care of and could quit their jobs, therefore opening more spots for middle aged Americans to take their place and become employed. The FDIC was another program that proves that the New Deal was a success. The FDIC provides insurance of up to $5000 given back if the bank failed to give citizens their money back. This proves that the New Deal was a success because people were now more confident in putting money in banks which in turn allowed the banks to give out loans to others and keep the cycle going so that the bank failures that caused the Great Depression will not …show more content…
Document 3 shows a table and graph of the government’s spending, deficit, and debts. As years passed the debt and deficit continued to increase and the government’s financial situation continued to look increasingly detrimental. This proves that the New Deal was a failure because the government’s debt continued to grow and caused America to be in debt every single year. Document 4 is a political cartoon that portrays America as sick, FDR as a doctor, and Congress as a man in a maid costume. America is trying all these New Deal remedies but remains sick and FDR is continuing to spend more money and create more programs. This proves that the New Deal was a failure because the cartoon implies that Congress is serving the President, which is not supposed to happen, and the America remains ill despite using all of the remedies that FDR continues to spend money on. Document 7 is an except from an online history book. It describes how all of the New Deal programs were discriminatory towards blacks, stating that the AAA forced many blacks of their land for whites and blacks that had jobs were given lower pay. Whites were also given priority over blacks for job opportunities. This proves that the New Deal was a failure because the New Deal was intended to help everyone in America but actually hurt

Related Documents