The 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 during the 1930s. Aimed at providing relief for the unemployed, recovery of the economy, and reform of the financial system, the New Deal significantly transformed the role of the federal government in American life and reshaped the economy and society.

5 Must Know Facts For Your Next Test

1. The New Deal included multiple initiatives such as the National Industrial Recovery Act (NIRA) and the Agricultural Adjustment Act (AAA), aimed at stabilizing industries and boosting agricultural prices.
2. Many programs created under the New Deal were categorized into three main areas: relief for the unemployed, recovery of the economy, and reform of financial systems.
3. The New Deal faced significant opposition from both conservatives who believed it expanded government too much and from progressives who felt it did not go far enough.
4. Key agencies created by the New Deal, like the Works Progress Administration (WPA), employed millions in various sectors, contributing to infrastructure development across the nation.
5. The legacy of the New Deal has had a lasting impact on American politics and economics, establishing precedents for government intervention in the economy and social welfare.

Review Questions

• How did The New Deal change the relationship between the federal government and American citizens?
  • The New Deal significantly altered the relationship between the federal government and American citizens by expanding the government's role in everyday life. It introduced various social programs designed to provide direct assistance to individuals and families, creating a sense of dependence on government support. This shift led to a more active governmental approach in regulating economic activity and ensuring social welfare, laying the groundwork for future federal programs.
• Evaluate the effectiveness of The New Deal in addressing the economic challenges of the Great Depression.
  • The effectiveness of The New Deal can be evaluated through its mixed results. While it helped provide immediate relief to millions of Americans through job programs and social services, its overall impact on economic recovery was limited until World War II spurred industrial growth. Critics argue that certain programs failed to fully resolve unemployment and economic instability. Nonetheless, The New Deal's reforms laid essential groundwork for future economic policies.
• Synthesize how The New Deal reshaped American political ideology regarding government intervention in economics and social welfare.
  • The New Deal fundamentally reshaped American political ideology by establishing a new norm where government intervention in both economics and social welfare became accepted and expected. It introduced a more expansive view of federal responsibility toward citizens' well-being, leading to debates about social safety nets that persist today. This ideological shift fostered an environment where subsequent policies continued to build on Roosevelt's principles, influencing political alignments and party platforms for decades.

Related terms

Social Security Act:

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

Civilian Conservation Corps (CCC):

A public work relief program that provided jobs for young men during the Great Depression, focusing on environmental conservation projects like reforestation and soil erosion prevention.

Federal Deposit Insurance Corporation (FDIC):

A government agency created in 1933 to provide insurance for bank deposits, aimed at restoring public confidence in the banking system and preventing bank runs.