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 economic relief, recovery, and reforms to the United States, significantly expanding the role of the federal government in economic and social welfare. The New Deal not only addressed immediate economic challenges but also set a precedent for increased presidential power and government intervention in the economy.

5 Must Know Facts For Your Next Test

1. The New Deal included key initiatives such as the Civilian Conservation Corps (CCC) and the Public Works Administration (PWA), which provided jobs and infrastructure improvements.
2. The series of programs initiated by the New Deal marked a dramatic shift in the relationship between the federal government and American citizens, as it took on a more active role in economic management.
3. The New Deal faced significant opposition from various political factions, including conservatives who believed it expanded government power too much and some progressives who thought it didn't go far enough.
4. One of the lasting impacts of the New Deal is the establishment of regulatory agencies such as the Securities and Exchange Commission (SEC) to oversee financial markets and protect investors.
5. The Supreme Court initially struck down several key components of the New Deal, leading FDR to propose court-packing legislation in 1937 to gain more favorable rulings.

Review Questions

• How did the New Deal change the perception of presidential power in American politics?
  • The New Deal significantly changed the perception of presidential power by expanding the role of the president in economic matters and social welfare. Prior to this period, there was a more limited view of federal involvement in everyday life. Roosevelt’s initiatives demonstrated that a strong executive could mobilize resources and implement large-scale programs to address national crises, effectively reshaping expectations regarding what a president could do.
• Evaluate the effectiveness of the New Deal programs in addressing the economic challenges of the Great Depression.
  • The effectiveness of New Deal programs can be evaluated through various outcomes such as job creation, infrastructure development, and economic stabilization. While many programs successfully provided immediate relief and jobs, critics argue that they did not fully end the Great Depression until World War II stimulated industry. However, lasting institutions were established that helped shape modern social welfare policies, indicating that while not completely effective, they laid crucial groundwork for future economic recovery.
• Analyze how the New Deal's expansion of government intervention influenced later political ideologies and policies in the United States.
  • The expansion of government intervention during the New Deal laid foundational ideas for future political ideologies in America, particularly concerning social welfare and economic regulation. This era shifted political discourse towards accepting a more involved government role in economic affairs, paving the way for later programs such as Medicare and Medicaid. Additionally, it influenced subsequent generations’ views on social justice, labor rights, and civil rights movements by embedding notions of government responsibility towards its citizens’ welfare into public policy.

Related terms

Social Security Act:

A 1935 law that established a system of old-age benefits, unemployment insurance, and aid for dependent children, marking a significant step in the federal government's role in social welfare.

Federal Emergency Relief Administration (FERA): A New Deal agency created in 1933 to provide direct relief for the unemployed and their families through grants and work relief programs.

National Industrial Recovery Act (NIRA): A 1933 law aimed at stimulating industrial growth and improving labor conditions, which allowed industries to create fair competition codes and established workers' rights to unionize.