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 in the 1930s. It aimed to provide immediate economic relief, recovery, and reform to stabilize the economy and alleviate suffering among the American people. This initiative significantly transformed the relationship between the government and the economy, establishing a precedent for future public policy analysis and intervention.

5 Must Know Facts For Your Next Test

1. The New Deal was implemented through a series of legislative acts known as the First New Deal (1933) and the Second New Deal (1935), each addressing different aspects of economic recovery.
2. Key agencies created during the New Deal included the Works Progress Administration (WPA) and the National Industrial Recovery Act (NIRA), which focused on job creation and industrial growth.
3. The New Deal fundamentally shifted public expectations about government responsibility for economic welfare, laying the groundwork for modern social programs.
4. The Supreme Court initially struck down several New Deal programs as unconstitutional, leading to significant political battles between FDR and the judiciary.
5. The New Deal's legacy includes ongoing debates about government intervention in the economy and its role in shaping modern American political ideology.

Review Questions

• How did the New Deal change the relationship between the American government and its citizens?
  • The New Deal marked a significant shift in how Americans viewed their government, transitioning from a more hands-off approach to one where the government actively intervened in economic matters. The creation of social welfare programs established a new expectation that the government would play a role in protecting citizens' economic well-being. This change laid the foundation for future policies aimed at social justice and economic stability.
• What were some key programs introduced under the New Deal, and how did they address economic challenges during the Great Depression?
  • Key programs introduced under the New Deal included the Civilian Conservation Corps (CCC), which provided jobs in conservation projects, and the Social Security Act, which offered financial support for the elderly and unemployed. These initiatives directly addressed widespread unemployment and poverty caused by the Great Depression by creating jobs, supporting families, and providing a safety net for those in need. They also reflected a shift towards government responsibility for economic recovery.
• Evaluate the long-term impacts of the New Deal on American public policy and economic thought.
  • The long-term impacts of the New Deal are profound, reshaping American public policy by institutionalizing government intervention in economic affairs. It set precedents for future policies aimed at regulating industries and providing social safety nets, which continue to influence modern governance. Additionally, it sparked discussions around Keynesian economics and government responsibility in managing economic cycles, leading to ongoing debates about fiscal policy and social welfare that resonate today.

Related terms

Social Security Act: A landmark piece of legislation that established a system of old-age benefits, unemployment insurance, and aid to dependent children, which is a fundamental part of the social safety net in the U.S.

Civilian Conservation Corps (CCC): A New Deal program that employed young men in environmental conservation projects, providing jobs and vocational training while addressing issues like unemployment and natural resource depletion.

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