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In the view of its supporters, the New Deal brought long-lasting change. It gave practical and financial support to millions of people and saved the economy from complete devastation. But the New Deal has also been heavily criticised.

Economic recovery

It was ultimately not until 1941, once the US economy geared up for World War Two, that full employment and prosperity returned to the levels seen before the 1929 Wall Street Crash.

However, Roosevelt and the New Deal did achieve a number of things:

• The New Deal restored confidence and improved the stability of the banking and financial sector.
• Roosevelt rebuilt trust between the government and the people. His use of fireside chats, his charisma and his ability to communicate are said to have created a bond between him (as president) and the people.
• The New Deal provided support to millions of Americans when they faced unemployment, homelessness and hunger.
• The New Deal created jobs and primed the pump when the economy needed intervention to help it recover.
• In 1935, Roosevelt introduced a national system of pensions and insurance against unemployment. Until then, America had been the only major industrial county with no social security.

The impacts of the New Deal on different groups

The New Deal had different impacts on different groups of people.

Women

• Initially the New Deal did not support women directly. In contrast, the CCC (Civilian Conservation Corps), one of the alphabet agencies, specifically helped young men. However, later agencies, such as the WPA (Works Progress Administration), did employ women, though mainly in unskilled jobs.
• In the 1930s, men were expected to provide the main source of income to support their entire household. Therefore, the NRA (National Recovery Administration) chose to set women’s wages lower than men’s.
• Frances Perkins became the Secretary of Labour and the first woman to be appointed to a cabinet-level position under Roosevelt.

Farmers

• Most help went to large-scale farmers. Small farmers and farm workers did not see much benefit.
• The AAA (Agricultural Adjustment Agency) helped as prices began to rise, incomes increased and evictions from farmland dropped.
• The TVA (Tennessee Valley Authority) taught farmers new techniques that helped to control soil erosion and increase productivity.
• However, the AAA displaced many sharecroppers, as farm owners were encouraged to produce less and use more technology to farm.

Workers

• The New Deal alphabet agencies provided relief and jobs for skilled and unskilled workers.
• The NRA set some fairer prices, wages and working conditions.
• The 1935 National Labor Relations Act (known as the Wagner Act) gave workers the right to join trade unions. It also stopped employers from using many unfair working practices.

African Americans

• The Great Depression put African Americans in even more poverty. Although the New Deal did help, in some ways life was even harder.
• Under the New Deal, approximately 10 per cent of the budgets for relief programmes were targeted to African Americans. Many people found jobs through these schemes. However, there was discrimination and segregation. The NRA excluded African Americans from skilled jobs and paid them lower wages, and segregated camps were a feature of the CCC.
• Roosevelt did nothing to end segregation in the South or increase civil rights. For example, he needed the support of southern Democrats in his party, many of whom were supporters of white supremacy. Therefore, he was unwilling to support policies like a federal anti-lynching bill.
• Historically, African Americans had supported the Republicans as that had been the party of Abraham Lincoln, the president who oversaw the abolition of slavery. However, with the New Deal, support moved towards the Democrats, a trend that then continued.

Native Americans

• The policies relating to Native Americans were known as the Indian New Deal and were partially successful. Roosevelt appointed John Collier as commissioner for the Bureau of Indian Affairs. He advocated for Native Americans to be treated with more dignity and to keep their own culture rather than being forced to assimilate.
• The 934 Indian Reorganization Act1 (known as the Wheeler-Howard Act) restored self-government to some Native American nations. They were given back power to run their own communities. It also provided loans for businesses and created more educational opportunities, such as schools and training.
• The death rate in Native American communities declined for the first time in centuries and the population began to increase.
• Native American communities continued to experience high levels of poverty.