The New Deal refers to a series of economic measures, implemented by the presidential administration of Franklin D Roosevelt, in the United States between 1933 and 1936 in response to the Great Depression. Historians have determined that the reforms focused on the '3 Rs'. They are:
• Relief for the poor and unemployed
• Recovery of the economy to normal (pre-Depression) levels
• Reform of the financial system to prevent a similar depression happening again
Since the beginning of the Depression in October 1929, a fifth of all banks in America had been forced to close and around 15% of people's life savings had been lost completely. This crisis caused a loss of confidence in the banking system, as people began withdrawing their savings from the banks because they feared they would lose all their money if they kept it in there. Roosevelt's first act upon becoming President in 1933, was to close all the banks while he pursued legislation in Congress to prevent people from losing their savings in the event of another crisis in the future.
Roosevelt tried to solve the mass unemployment problems in the country, by having the government employ people directly to work on projects, such as farm security and public works such as road building.
Another of Roosevelt's early decisions, was to repeal the Prohibition laws that had banned the making and sale of alcohol during the 1920s. Roosevelt felt, that allowing alcohol to be sold again would provide a financial boost to the cities and would help aid the recovery of the economy.
The 'New Deal' measures were largely popular and went a long way to ensuring that the Democrats won 7 of the next 9 presidential elections in the United States.
• Relief for the poor and unemployed
• Recovery of the economy to normal (pre-Depression) levels
• Reform of the financial system to prevent a similar depression happening again
Since the beginning of the Depression in October 1929, a fifth of all banks in America had been forced to close and around 15% of people's life savings had been lost completely. This crisis caused a loss of confidence in the banking system, as people began withdrawing their savings from the banks because they feared they would lose all their money if they kept it in there. Roosevelt's first act upon becoming President in 1933, was to close all the banks while he pursued legislation in Congress to prevent people from losing their savings in the event of another crisis in the future.
Roosevelt tried to solve the mass unemployment problems in the country, by having the government employ people directly to work on projects, such as farm security and public works such as road building.
Another of Roosevelt's early decisions, was to repeal the Prohibition laws that had banned the making and sale of alcohol during the 1920s. Roosevelt felt, that allowing alcohol to be sold again would provide a financial boost to the cities and would help aid the recovery of the economy.
The 'New Deal' measures were largely popular and went a long way to ensuring that the Democrats won 7 of the next 9 presidential elections in the United States.