Industries that survived in 1933 were able to make profit
The RFC helped 6,000 banks re-open
Unemployment fell from 12.8 to 9.5 million by 1939
New Deal Aim 1: Recovery
Shortcomings
Farming - income rarely reached 1929 levels
Tenant farmers were thrown off land + recovery relied on regular government payments rather than people becoming self-sufficient
Industry - NRA codes failed as they were ignored
Old industries like coal + textiles remained unprofitable and the entire country experienced deep recession in 1937-38.
Banking - despite work of RFC; 106 banks which had received funds were forced to close.
Economy was still not recovered and unemployment was higher than 1929 - where it was at 3.2%
Had reached 17.2% by 1939.
New Deal Aim 2: Relief
Achievements
WPA employed 8 million people and created new schools etc.
35% of population received relief - Social Security Act provided unemployment insurance for the first time
New Deal Aim 2: Relief
Shortcomings
All the projects relied heavily on government spending
Work Relief projects provided work for only around 40% of those who needed it
Government didn't spend enough on relief and the amount of help varied greatly from state to state
The poor needed social housing and the government built very little
New Deal Aim 3: Reform
Achievements
For the first time, America provided help for families, the unemployed, the elderly and disabled.
Unions were recognised and minimum wages introduced
Electricity was made available to farmers and rural areas
Financial regulations were put into place
New Deal Aim 3: Reform
Shortcomings
Social Security System left out large groups of people
Including agricultural workers + household servants
(Payments were also relatively small)
Little was done to close the gap between the rich and the poor
Most Social Security was paid for out of people's wages rather than federal spending and so as a result taxation was not used to take money from the rich and give to the poor so the large pay gap remained much the same as it had been in 1930 by 1940.
