New Deal

Definition

The New Deal refers to a series of programs and policies implemented by President Franklin D. Roosevelt in the 1930s to combat the effects of the Great Depression. It aimed to provide relief for the unemployed, recover the economy, and reform the financial system, establishing a more active role for the federal government in social welfare and economic stability.

5 Must Know Facts For Your Next Test

1. The New Deal was initiated in response to the widespread economic devastation caused by the Great Depression, which began with the stock market crash of 1929.
2. The New Deal included multiple programs, such as the Works Progress Administration (WPA) and the National Industrial Recovery Act (NIRA), aimed at job creation and economic recovery.
3. One significant outcome of the New Deal was the establishment of a safety net for Americans, laying the groundwork for future social welfare policies.
4. The New Deal sparked debates over the role of government in the economy, leading to an expansion of federal power and intervention in economic matters.
5. Although some New Deal programs were controversial and faced legal challenges, many were upheld and set a precedent for future government involvement in social policy.

Review Questions

• How did the New Deal change the government's approach to poverty and income inequality during its implementation?
  • The New Deal fundamentally shifted the government's approach to poverty and income inequality by introducing a range of federal programs aimed at providing direct relief and support to those in need. It recognized that poverty was not just an individual failing but a systemic issue requiring government intervention. By implementing measures such as unemployment insurance, job creation programs, and social security benefits, the New Deal sought to alleviate hardship and reduce income disparity on a national scale.
• In what ways did the New Deal influence subsequent anti-poverty policies and programs in America?
  • The New Deal laid a critical foundation for future anti-poverty policies by establishing mechanisms for social support that would evolve over time. Programs like Social Security were direct results of New Deal initiatives and continue to provide essential assistance today. The emphasis on government responsibility for economic stability became a guiding principle for later policies aimed at reducing poverty, shaping legislation that addresses welfare, healthcare, and education in subsequent decades.
• Evaluate how the principles behind the New Deal have been applied or adapted in different welfare state models across various countries.
  • The principles behind the New Deal have found resonance in various welfare state models globally, reflecting an understanding that government intervention is vital in addressing economic distress. Countries like Sweden and Canada have adopted similar approaches by integrating robust social safety nets that echo aspects of the New Deal's focus on unemployment benefits and social services. However, each country has adapted these principles to fit their unique social, political, and economic contexts, demonstrating how foundational ideas can evolve while still aiming to combat poverty and inequality.

Related terms

Social Security Act: A landmark piece of legislation passed in 1935 that created a system of old-age benefits, unemployment insurance, and aid for dependent children and the disabled.

Civilian Conservation Corps (CCC): A public work relief program established in 1933 that employed young men to work on conservation projects, including reforestation and infrastructure development.

Keynesian Economics: An economic theory advocating for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.