New Deal

Definition

The New Deal was a series of programs and policies implemented by President Franklin D. Roosevelt during the 1930s in response to the Great Depression. It aimed to provide relief for the unemployed, recovery of the economy, and reform of the financial system to prevent future depressions, fundamentally reshaping the role of government in American society.

5 Must Know Facts For Your Next Test

1. The New Deal included a wide range of programs such as the Works Progress Administration (WPA), which employed millions of people for public works projects.
2. The Agricultural Adjustment Act (AAA) was part of the New Deal, aimed at boosting agricultural prices by reducing surpluses through land idling.
3. One of the key aspects of the New Deal was the establishment of a social safety net, which laid the foundation for modern welfare programs in the United States.
4. The New Deal faced significant opposition from both conservatives who believed it expanded government power too much and progressives who felt it didn't go far enough in reforming the economy.
5. The legacy of the New Deal continues to influence American political debates about the role of government in economic and social welfare.

Review Questions

• How did the New Deal change the relationship between the federal government and American citizens?
  • The New Deal significantly transformed the relationship between the federal government and American citizens by expanding government intervention in the economy and social welfare. Programs designed to provide relief, recovery, and reform established a precedent for federal responsibility in ensuring economic stability and supporting citizens during hard times. This new role led to greater expectations from citizens regarding governmental support in times of crisis.
• Evaluate the effectiveness of New Deal programs in addressing the issues caused by the Great Depression.
  • Many New Deal programs were effective in providing immediate relief to millions of Americans suffering from unemployment and poverty during the Great Depression. Programs like the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) created jobs and improved infrastructure. However, while these initiatives helped alleviate some symptoms of economic distress, critics argue that they did not fully resolve systemic economic issues or lead to a complete recovery until World War II boosted production and employment.
• Assess how the New Deal's approach to economic recovery influenced future governmental policies in America.
  • The New Deal's approach laid a foundation for future governmental policies by establishing a belief in active government intervention during economic crises. This shift influenced later policies such as Lyndon B. Johnson's Great Society programs in the 1960s, which expanded welfare provisions and civil rights initiatives. Additionally, contemporary debates about health care reform, education funding, and job creation continue to draw on the principles established during the New Deal regarding social safety nets and economic support.

Related terms

Social Security Act:

A 1935 law that established a system of old-age benefits for workers, unemployment insurance, and aid for dependent mothers and children.

Civilian Conservation Corps (CCC):

A New Deal program that provided jobs for young men to work on environmental conservation projects, such as reforestation and flood control.

Federal Deposit Insurance Corporation (FDIC):

A government agency created by the Glass-Steagall Act in 1933 that insures bank deposits, aiming to restore public confidence in the banking system.