The New Deal

Definition

The New Deal refers to a series of programs and policies implemented by President Franklin D. Roosevelt in response to the Great Depression during the 1930s. It aimed to provide immediate economic relief, stimulate recovery, and reform the financial system, fundamentally reshaping the role of the federal government in American life.

5 Must Know Facts For Your Next Test

1. The New Deal consisted of two main phases: the First New Deal (1933-1934), focusing on immediate recovery efforts, and the Second New Deal (1935-1938), which included more extensive social welfare programs.
2. One of the hallmark programs of the New Deal was the Works Progress Administration (WPA), which employed millions in various public works projects.
3. The New Deal also included significant reforms in banking and finance, including the establishment of the Federal Deposit Insurance Corporation (FDIC) to protect depositors' savings.
4. Roosevelt's Fireside Chats helped garner public support for New Deal programs by communicating directly with Americans over the radio, fostering a sense of connection and reassurance.
5. The legacy of the New Deal is still debated today, with some viewing it as a crucial turning point for government intervention in the economy and others criticizing it for increasing federal power.

Review Questions

• How did the New Deal reshape the role of the federal government in addressing economic crises?
  • The New Deal fundamentally changed how the federal government interacted with its citizens by actively engaging in economic recovery and providing direct assistance to those in need. It marked a shift from a more laissez-faire approach to one where the government took on a central role in managing economic issues. Programs such as Social Security and public works initiatives highlighted this new responsibility, establishing precedents for future government intervention in economic matters.
• Evaluate the impact of key New Deal programs, such as the Civilian Conservation Corps and Works Progress Administration, on American society during the Great Depression.
  • Programs like the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) had profound effects on American society by providing millions of jobs and boosting morale during the Great Depression. The CCC focused on environmental conservation while engaging young men, helping them gain skills and financial independence. The WPA created diverse employment opportunities, from construction to arts projects, thereby revitalizing communities and instilling a sense of hope among citizens facing economic despair.
• Analyze how the legacy of the New Deal continues to influence contemporary debates about government intervention in the economy.
  • The legacy of the New Deal remains relevant today as it set a precedent for federal involvement in economic matters, particularly during crises. Contemporary debates often revolve around the balance between necessary government intervention for social welfare and concerns about expanding federal power. Policies like health care reform and economic stimulus packages draw parallels to New Deal initiatives, with advocates citing historical successes while critics argue against increased government control over individual lives and market dynamics.

Related terms

Social Security Act:

A 1935 law that created a social insurance program designed to provide financial assistance to retirees and the unemployed.

Civilian Conservation Corps (CCC): A public work relief program established in 1933 that provided jobs for young men in environmental conservation projects.

National Industrial Recovery Act (NIRA): A 1933 law that aimed to stimulate industrial growth and improve labor conditions by establishing fair competition and labor standards.