New Deal

Definition

The New Deal was a series of programs and policies implemented in the United States during the 1930s aimed at providing relief, recovery, and reform to counter the effects of the Great Depression. It fundamentally changed the relationship between the government and the economy, leading to increased federal intervention and cooperation with state and local governments in various social and economic initiatives.

5 Must Know Facts For Your Next Test

1. The New Deal was launched by President Franklin D. Roosevelt in response to the Great Depression, focusing on three key areas: relief for the unemployed, recovery of the economy, and reform of the financial system.
2. Key programs of the New Deal included the Civilian Conservation Corps (CCC), Public Works Administration (PWA), and the Agricultural Adjustment Act (AAA), which aimed to provide jobs and support for farmers.
3. The New Deal significantly expanded the federal government's role in the economy, creating numerous agencies and programs to regulate industries, protect workers' rights, and provide social services.
4. One of the lasting impacts of the New Deal was the establishment of Social Security, which provided financial assistance to retirees and laid the groundwork for modern social welfare programs.
5. The New Deal faced criticism from both conservatives who felt it was too expansive and leftists who believed it did not go far enough in addressing economic inequality.

Review Questions

• How did the New Deal transform the relationship between the federal government and state governments in addressing economic issues?
  • The New Deal transformed this relationship by promoting greater collaboration between federal and state governments. The federal government implemented various programs that required states to administer them, creating a partnership that had previously been less pronounced. This shift led to an increase in federal funding for state-level initiatives, enabling states to better address local economic challenges while also adhering to broader national goals set by federal policies.
• Evaluate how specific New Deal programs addressed unemployment during the Great Depression and their effectiveness.
  • Programs like the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) directly tackled unemployment by providing millions of jobs in public works projects. The CCC focused on environmental conservation, while the WPA engaged artists, writers, and laborers in diverse community projects. These initiatives were effective in reducing unemployment rates significantly, fostering economic recovery, and leaving a lasting legacy of infrastructure improvements across the nation.
• Analyze the long-term implications of the New Deal on American public policy and its relevance to contemporary government intervention strategies.
  • The New Deal had profound long-term implications for American public policy by establishing a precedent for increased government intervention in economic matters. It laid the foundation for future social safety nets and regulatory frameworks that aimed to prevent similar crises. This relevance persists today as policymakers draw on New Deal principles when addressing contemporary issues like income inequality, healthcare access, and economic recovery strategies following recessions or crises, illustrating its lasting influence on American governance.

Related terms

Great Depression:

A severe worldwide economic downturn that lasted from 1929 until the late 1930s, characterized by high unemployment, bank failures, and a drastic decline in economic activity.

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

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