Impacts of the New Deal
Social impacts of the New Deal
There were a number of ways in which the New Deal could be considered a success socially:
- Confidence was restored in the government’s ability to help people. The New Deal restored the American people’s hope by showing that in times of trouble, the government would help them.
- Most New Deal agencies were largely free from corruption and this restored confidence in the American system.
- The Tennessee Valley Authority (TVA) improved the lives of millions of people by providing electricity and irrigation across much of America.
- Workers saw improvements in their standard of living.
- Where there were cases of unemployment or sickness, government agencies such as the Federal Emergency Relief Administration (FERA) and the measures taken under the 1935 Social Security Act provided a basic level of income for many people.
- The 1935 Wagner Act saw trade unionA trade union is a type of organisation whose main purpose is to represent the interests of employees in a specific type of business. legally recognised and workers’ rights strengthened.
- There were some improvements for African Americans, with slum housing demolished and new housing built as well as the development of welfarePayments and other benefits, such as education, health care, and unemployment payments, given to a population free at the point of use, although paid for by general taxation. payments. However, many New Deal agencies, such as the Civilian Conservation Corps (CCC), were criticised for applying segregationThis meant that white people and black people had to live separately. The areas of society affected by segregation included churches, hospitals, theatres and schools. to their camps. President Franklin D Roosevelt did nothing to end segregation in the South or increase civil rightsRights everyone is entitled to regardless of the colour of their skin, their beliefs, sexuality, gender or other personal characteristics. These rights could include the right to vote, or the right to a good education etc.
- Historically, African Americans had supported the Republican PartyOne of the two major American political parties. Republicans tend to hold a more conservative viewpoint on politics and society. as this was the party of Abraham Lincoln, the president who oversaw the abolition of slavery. However, with the New Deal, support moved towards the Democratic PartyPolitical party in the United States. Democrats tend to hold a more liberal viewpoint on politics and society.
- Roosevelt’s government passed some reforms to help Native Americans, including the construction of some schools and irrigation systems on reservationAn area of land governed by Native Americans, who report to the US government, not the state the reservation is located in. Additionally, the 1934 Indian Reorganisation Act Also known as the Wheeler Howard Act, this law halted the sale of tribal lands and allowed for some recovery of unallocated lands reversed previous policy and made it easier for tribes to hold communal lands and purchase land back from private individuals. However, poverty was still an enduring issue for Native Americans.
Economic impacts of the New Deal
The New Deal also had various positive economic impacts:
- The banking industry was stabilised, so people could save and borrow money with confidence.
- Millions of jobs were created, with around 3 million jobs available in the CCC alone. Despite this, unemployment remained high. In 1939, unemployment rates reached almost 17 per cent. Full employment was only finally reached during World War Two.
- Although wages did increase, not everyone benefited. Some of the measures of the National Recovery Administration guidelines set wages for women lower than those of men. The period was also marked by strikes, for example in the car and steel industries, as workers campaigned for better wages and conditions.
- Farmers’ incomes roughly doubled in the 1930s as government policies regulated production to prevent price collapses of the kind seen during the Great Depression. However, most of the help went to large-scale farmers who benefited from rising prices. Farm workers, such as sharecroppersFarmers who had to pay to use land by giving a proportion of their produce to the owner. did not see much benefit. There was still severe poverty and poor farmland in the Dustbowl (parts of Colorado, Kansas, Oklahoma and Texas). This meant that many farmers had to look for work elsewhere.
- Pensions were provided for the elderly and better financial aid was available for the unemployed, as well as the sick and the disabled.
