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The USA, c1920–55: Boom, Bust and Recovery

The New Deal and the economy

  • 3 things to know
  • Paper 2

Overview

Recall questions on whether it ended unemployment, what it built, how it changed the role of government, financial regulation, and the conservative and radical criticisms.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

Did the New Deal end unemployment?

Key term

What was the effect on the banking and financial system?

Key term

How is the New Deal assessed overall?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Did the New Deal end unemployment?

    Model answer

    It reduced unemployment and built infrastructure, but full recovery came only with wartime production.

  2. 2

    What was the Federal Housing Administration?

    Model answer

    The agency created in 1934 to insure home loans, which made long, fully repaid mortgages with small deposits normal and revived the construction industry.

  3. 3

    What did the New Deal build?

    Model answer

    Over 650,000 miles of road, 125,000 public buildings, 8,000 parks, and hydroelectric infrastructure that transformed the west and the Tennessee valley.

  4. 4

    How did the New Deal change the role of government?

    Model answer

    It established federal responsibility for economic management, employment and welfare, permanently expanding the state's role and the presidency's.

  5. 5

    What was the effect on the banking and financial system?

    Model answer

    The FDIC insured deposits, the Glass-Steagall Act separated commercial and investment banking, and the SEC regulated securities, ending the instability of the 1920s.

  6. 6

    What is the conservative criticism of the New Deal?

    Model answer

    That it prolonged the Depression by raising costs and taxes, creating uncertainty for business, and building a permanent bureaucracy.

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AThe government admitted 96 dead and 333 wounded.
BOther estimates run to several hundred dead.
COpponents claimed thousands.

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