Hooverville's Response To The New Deal

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With the crisis of capitalism and suffering, Franklin D. Roosevelt promised to take action. The New Deal was an experiment to recover the existing economy and society from the depression. The Gross National Product dropped by 50%, more than 100,000 businesses closed, and the profits fell from 10 billion to 1 billion. During 1933, 25% of the population was unemployed and millions were only working part time. Many people suffered from hunger, poor housing, and illnesses. The homeless formed places to live called “Hooverville’s”, and marriage/parenthood was delayed for many. The farm crisis had worsened with overproduction and low prices, droughts and insects, and debt and foreclosure. African Americans suffered more than whites, with an unemployment rate of 50%. The US …show more content…
The Act wanted to make prices and wages stable. It encouraged cooperation with the codes of : limiting production, and setting prices/wages. The Act instead helped big business dominate the code, and did not deliver economic recovery. In 1935, the Act was court voided because of too much ASG power. To help farmers, the Agricultural Adjustment Act was created. It paid farmers to cut production, tax processors funded payments, favored landowner, but it was rewritten because of Court objections. Relief programs were created in 1933. The Civilian Conservation Corps gave jobs to 2.5 million young men. The New Deal cut unemployment and business failures, and raised farm prices and wages/salaries. Opposition to the New Deal included regulation, taxes, and deficit spending. The American Liberty League claimed that the New Deal equated to radicalism. FDR responded by extending the New Deal. The Emergency Relief Act was created in 1935. It initiated a federal pension system, unemployment compensation, and gave aid to dependents. The USG gained conservative responsibility. The Act often excluded people of