Assessing the Lasting Impact of Roosevelt's New Deal

Verdicts (Conclusions)

In 1937, prosperity seemed to be returning, and Roosevelt cut the New Deal budget. He laid off many workers who had been employed by the New Deal’s organizations, and the cut in spending triggered other cuts throughout the economy. Unemployment rose again.

This damaged Roosevelt badly. Middle-class voters lost some confidence in him, and in 1938, Republicans did well in the congressional elections, making it harder for Roosevelt to push his reforms through Congress. However, he was elected again in 1940.

Aspect 1: A New Society?

• The New Deal restored the faith of the American people in their government.
• It set the tone for future government policies aimed at helping people.
• It handled billions of dollars of public money with no major corruption scandals.
• It divided the USA. Roosevelt was accused of being a Communist and of attacking American values.
• The New Deal was seen by some as attacking local government authority.

Aspect 2: Industrial Workers

• The NRA and the Second New Deal strengthened the position of labor unions.
• They supported unions and compelled large corporations to negotiate with them.
• Some unions combined to form the Committee for Industrial Organization (CIO).
• The Union of Automobile Workers (UAW) was recognized by the two most anti-union corporations: General Motors and Ford.
• Big business remained immensely powerful despite being challenged by the government.
• Unions were still treated with suspicion by many employers.
• Strikes often resulted in brutal violence in the 1930s.
• Ford, Republic Steel, and Chrysler employed their own thugs or controlled local police forces.
• In 1930, there were 7 million union members; unions became more powerful after the war.

Aspect 3: Unemployment and the Economy

• The New Deal created millions of jobs.
• It stabilized the American banking system.
• It cut the number of business failures.
• The TVA brought work and an improved standard of living to many regions.
• It provided the USA with valuable resources such as schools, roads, and power stations.
• It never fully solved the underlying economic problems.
• The US economy took longer to recover than some European countries.
• Confidence remained low for a period.
• When Roosevelt cut the New Deal budget in 1937, the country went back into recession.
• Six million people were unemployed in 1941.
• The USA’s entry into the war ultimately brought an end to mass unemployment.