New Deal

Definition

The New Deal refers to a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression. This ambitious set of policies aimed to provide relief for the unemployed, recover the economy, and reform the financial system to prevent future depressions, fundamentally reshaping the role of the federal government in American life.

5 Must Know Facts For Your Next Test

1. The New Deal was implemented in two main phases: the first phase focused on immediate relief efforts from 1933 to 1934, while the second phase from 1935 to 1938 aimed at recovery and reform.
2. Key programs created during the New Deal included the Works Progress Administration (WPA), which employed millions in public works projects, and the National Industrial Recovery Act (NIRA), which sought to boost industrial production and improve labor conditions.
3. The New Deal significantly expanded the role of the federal government in economic affairs and established various regulatory bodies, such as the Securities and Exchange Commission (SEC) to oversee the stock market.
4. While the New Deal helped many Americans during the Great Depression, it also faced criticism from both conservatives who believed it was too interventionist and from progressives who thought it didn't go far enough.
5. The legacy of the New Deal includes a stronger social safety net in America and set a precedent for future government intervention in the economy during times of crisis.

Review Questions

• How did the New Deal change the relationship between the federal government and American citizens?
  • The New Deal fundamentally altered the relationship between the federal government and American citizens by expanding federal involvement in economic affairs and providing direct assistance to those in need. Programs like Social Security established a social safety net for citizens, while agencies like FERA delivered immediate relief during the Great Depression. This shift marked a move towards a more active role for the government in ensuring economic stability and welfare for its people.
• Discuss how key programs of the New Deal addressed both economic recovery and social reform.
  • Key programs of the New Deal, such as the WPA and CCC, were designed not only for economic recovery but also for social reform. The WPA provided millions with jobs on public works projects, stimulating economic activity while fostering community development. Simultaneously, programs like Social Security addressed social needs by establishing safety nets for vulnerable populations. This dual focus on economic recovery and social welfare illustrated Roosevelt's vision for a more equitable society during challenging times.
• Evaluate the long-term impacts of the New Deal on American political culture and economic policy in subsequent decades.
  • The long-term impacts of the New Deal on American political culture and economic policy are profound. It established a precedent for federal intervention during economic crises, which has influenced responses to subsequent downturns like those seen in 2008. The New Deal also fostered a shift towards a more progressive political culture where government action is seen as a necessary tool for ensuring social justice and economic stability. These impacts are evident in modern discussions about welfare policies, labor rights, and government regulation of financial markets.

Related terms

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

Federal Emergency Relief Administration (FERA): A New Deal agency that provided federal funds to state and local governments to help them provide food, shelter, and other necessities to the needy.

Civilian Conservation Corps (CCC): A public work relief program that provided jobs for young men on environmental conservation projects during the Great Depression.