New Deal

Definition

The New Deal refers to a series of programs and policies implemented by President Franklin D. Roosevelt in the 1930s aimed at addressing the economic devastation caused by the Great Depression. This comprehensive strategy included initiatives focused on job creation, economic recovery, and financial reform, reshaping the relationship between the government and the economy in the United States.

5 Must Know Facts For Your Next Test

1. The New Deal was implemented during Roosevelt's first term in office, primarily from 1933 to 1938, and consisted of two phases: the First New Deal and the Second New Deal.
2. Key programs included the Civilian Conservation Corps (CCC), Public Works Administration (PWA), and Works Progress Administration (WPA), which created millions of jobs for unemployed Americans.
3. The New Deal also established regulatory bodies such as the Securities and Exchange Commission (SEC) to oversee financial markets and prevent future economic crises.
4. Critics of the New Deal argued that it expanded government power too much, while supporters believed it was essential for stabilizing the economy and providing relief to millions.
5. The legacy of the New Deal reshaped American politics and public policy, laying the groundwork for modern welfare programs and increasing expectations for government intervention in economic matters.

Review Questions

• How did the New Deal transform the relationship between the federal government and American citizens?
  • The New Deal fundamentally changed how Americans viewed their government by expanding its role in economic life. Before this period, government intervention in the economy was minimal. However, through various programs that provided direct assistance and job creation, citizens began to expect government involvement in addressing social issues and economic challenges. This shift led to lasting changes in public policy and set a precedent for future government action during crises.
• Evaluate the effectiveness of specific New Deal programs like the CCC or WPA in addressing unemployment during the Great Depression.
  • Programs such as the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) were highly effective in reducing unemployment during the Great Depression. The CCC focused on environmental projects, employing young men to work on conservation efforts, while the WPA provided jobs for millions through public works projects like roads and buildings. Together, these initiatives not only provided immediate relief but also contributed to long-term infrastructure improvements across the country.
• Analyze how opposition to the New Deal influenced subsequent economic policies in America throughout the 20th century.
  • Opposition to the New Deal came from various political groups who argued that it expanded government power too far. This criticism influenced later economic policies by prompting shifts towards more conservative fiscal measures during times of perceived excess. The debates surrounding government intervention created a legacy where future administrations had to balance economic regulation with individual freedoms, shaping policy discussions well into the late 20th century as America navigated further economic challenges.

Related terms

Social Security Act: A landmark piece of legislation passed in 1935 that established a system of old-age benefits, unemployment insurance, and aid for dependent children, marking a significant expansion of the federal government's role in social welfare.

Federal Deposit Insurance Corporation (FDIC): Created in 1933, the FDIC provides insurance for bank deposits, helping to restore public confidence in the banking system and prevent bank runs.

National Industrial Recovery Act (NIRA): A key piece of New Deal legislation enacted in 1933 that sought to stimulate industrial growth and improve labor conditions through codes of fair competition.