OCR GCSE History A (J410) — Non-British Depth Studies
How did the US government go from doing almost nothing to paying millions of young men to plant trees? Roosevelt’s initial response to the Great Depression focused heavily on the immediate goal of providing help for the starving and unemployed. This burst of legislation during his first "Hundred Days" created the Alphabet Agencies, a series of government departments designed to tackle the crisis head-on.
For example, the Civilian Conservation Corps (CCC) hired 2.5 million young, single men for environmental work, paying them $30 a month (with $25 sent directly home to their families). Meanwhile, the Federal Emergency Relief Administration (FERA) distributed $500 million in grants to states to fund soup kitchens and employment schemes. By declaring a four-day bank holiday through the Emergency Banking Act, Roosevelt successfully reopened 6,000 solvent banks, instantly restoring public confidence.
When an economy stalls, governments sometimes spend massive amounts of borrowed money just to get citizens buying things again. This strategy, known as Pump-priming, drove the broader push for economic recovery and long-term reform. The Agricultural Adjustment Administration (AAA) paid farmers to reduce their harvests, which successfully halted overproduction and nearly doubled farming incomes between 1933 and 1939.
To tackle industrial recovery, the National Recovery Administration (NRA) established fair working codes regarding minimum wages and maximum hours for 2.3 million participating businesses. Later, Roosevelt launched the Second New Deal to provide a permanent safety net for vulnerable citizens. The most crucial part of this was the Social Security Act of 1935, which introduced federal pensions for over-65s and 16 weeks of half-pay for the unemployed.
Not everyone was thrilled to receive government intervention; many wealthy elites viewed Roosevelt's policies as a terrifying step towards socialism. This opposition from the Right was deeply rooted in Rugged Individualism and Laissez-faire economics, the belief that individuals should support themselves without state interference.
In August 1934, conservative business leaders formed the American Liberty League, which grew to 125,000 members by 1936. They bitterly opposed the heavy taxes imposed by the Wealth Tax Act and argued that agencies like the NRA represented "Soviet-style planning" that destroyed the right to work. Roosevelt dismissed these wealthy critics as "Economic Royalists" who were entirely out of touch with the suffering of ordinary Americans.
While conservative politicians thought the government was doing too much, a wave of radical critics argued it was doing far too little. This Populism appealed to poor Americans who felt the New Deal had only saved big business and left ordinary families behind. The most dangerous threat to Roosevelt came from Senator Huey Long, a Left-wing critic who proposed the "Share Our Wealth" scheme.
Long wanted to cap personal fortunes at $3 million to $5 million and guarantee every family a yearly income of $2,000 to $2,500, alongside a one-off $5,000 grant. He gained massive support, with up to 8 million members joining his clubs before his assassination in 1935. Other populist figures included Dr. Francis Townsend, who campaigned for a $200 monthly pension for the elderly, and Father Charles Coughlin, a "radio priest" with an audience of up to 40 million listeners. This intense pressure from the Left is widely credited with forcing Roosevelt to introduce the Social Security Act.
Even the President of the United States cannot overrule the nation's highest laws. The Supreme Court was dominated by conservative, Republican-appointed judges (nicknamed the "Four Horsemen") who believed the federal government was severely overstepping its constitutional bounds. They acted as a mechanism of Checks and Balances against Roosevelt's expanding executive power.
In 1935, the "Sick Chicken Case" (Schechter Poultry Corp. v. US) resulted in the Court declaring the NRA Unconstitutional. The judges ruled that the federal government could only regulate Interstate Commerce (trade crossing state lines), not local businesses operating within a single state. The following year, the AAA was also struck down on similar grounds.
Furious, Roosevelt attempted to pass a "Court-Packing Plan" in 1937 to add up to six new supportive judges. Although Congress overwhelmingly rejected this controversial move as an attack on democracy, the threat frightened the Court into supporting later New Deal laws, a shift famously known as "the switch in time that saved nine".
Did the New Deal actually end the Great Depression? When assessing Roosevelt's overall impact, historians generally agree that he succeeded in providing immediate relief, but largely failed to achieve permanent economic recovery. Unemployment dropped significantly from 25% (13 to 14 million people) in 1933 to 14.3% in 1937.
However, the economy remained highly fragile and dependent on government spending. When Roosevelt cut federal spending in 1937 to balance the budget, it triggered the Roosevelt Recession (1937-38). Industrial production plummeted by 33%, and unemployment surged back up to 19% by 1938.
Furthermore, the New Deal had severe social limitations; the Social Security Act deliberately excluded farm and domestic workers, meaning 60% of Black Americans initially received no benefit. Ultimately, it was the massive industrial demand of World War II, rather than the New Deal itself, that stabilised the economy and permanently ended the Depression.
Students often state that the New Deal ended the Great Depression. You must clarify that while it provided vital relief, it was World War II rearmament that finally solved the unemployment crisis.
When answering 'Evaluate' questions, ensure you balance the immense success of short-term relief (like the CCC housing millions) against the failure to achieve permanent recovery (evidenced by the 1937 recession).
Examiners expect you to accurately categorise opposition; remember that the Supreme Court and the Liberty League opposed the New Deal from the Right, while Huey Long and Dr. Townsend opposed it from the Left.
To achieve top marks for specific knowledge, explicitly link Supreme Court cases to the agencies they destroyed, such as the 'Sick Chicken Case' legally ending the NRA.
Alphabet Agencies
The various government departments and work-relief programs set up by Roosevelt, known by their initials (e.g., CCC, WPA).
Pump-priming
The economic theory that heavy government spending creates jobs, which leads to increased consumer demand and further private-sector job creation.
Second New Deal
A phase of more radical reform launched by Roosevelt between 1935 and 1938, largely in response to pressure from Left-wing critics.
Rugged Individualism
The conservative belief that individuals should be self-reliant and overcome hardship through hard work, rather than relying on state welfare.
Laissez-faire
An economic policy advocating for minimum government interference in the business and financial affairs of a country.
Populism
A political approach that strives to appeal to ordinary people who feel that their concerns are disregarded by established elite groups.
Checks and Balances
The constitutional system that allows each branch of a government to amend or veto acts of another branch so as to prevent any one branch from exerting too much power.
Unconstitutional
An action or law that violates the rules set out in a country's constitution, making it legally invalid.
Interstate Commerce
Trade, traffic, or transportation of goods crossing state boundaries, which the US Constitution allows the federal government to regulate.
Roosevelt Recession (1937-38)
An economic downturn caused by Roosevelt's premature cuts to government spending and the introduction of new Social Security taxes.
Put your knowledge into practice — try past paper questions for History A
Alphabet Agencies
The various government departments and work-relief programs set up by Roosevelt, known by their initials (e.g., CCC, WPA).
Pump-priming
The economic theory that heavy government spending creates jobs, which leads to increased consumer demand and further private-sector job creation.
Second New Deal
A phase of more radical reform launched by Roosevelt between 1935 and 1938, largely in response to pressure from Left-wing critics.
Rugged Individualism
The conservative belief that individuals should be self-reliant and overcome hardship through hard work, rather than relying on state welfare.
Laissez-faire
An economic policy advocating for minimum government interference in the business and financial affairs of a country.
Populism
A political approach that strives to appeal to ordinary people who feel that their concerns are disregarded by established elite groups.
Checks and Balances
The constitutional system that allows each branch of a government to amend or veto acts of another branch so as to prevent any one branch from exerting too much power.
Unconstitutional
An action or law that violates the rules set out in a country's constitution, making it legally invalid.
Interstate Commerce
Trade, traffic, or transportation of goods crossing state boundaries, which the US Constitution allows the federal government to regulate.
Roosevelt Recession (1937-38)
An economic downturn caused by Roosevelt's premature cuts to government spending and the introduction of new Social Security taxes.
