The New Deal

Definition

The New Deal was a series of programs and reforms implemented by President Franklin D. Roosevelt in response to the Great Depression during the 1930s. It aimed to provide relief for the unemployed, recover the economy, and reform the financial system to prevent future depressions. This transformative initiative significantly altered the relationship between the federal government and the states, emphasizing federal intervention in economic matters and establishing a new framework for intergovernmental relations.

5 Must Know Facts For Your Next Test

1. The New Deal consisted of two major phases: the First New Deal (1933-1934) focused on immediate economic recovery, while the Second New Deal (1935-1938) introduced more social welfare initiatives.
2. Key components of the New Deal included job creation programs like the Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA), which employed millions.
3. The New Deal expanded the role of the federal government in economic affairs, shifting power from states to the national government and leading to lasting changes in federalism.
4. The establishment of agencies like the Securities and Exchange Commission (SEC) aimed to regulate financial markets and protect investors, showcasing a commitment to reform.
5. The New Deal faced significant opposition from various political groups, leading to challenges in implementing its policies, but it laid the groundwork for modern social welfare programs.

Review Questions

• How did The New Deal change the relationship between state and federal governments?
  • The New Deal significantly shifted power from state governments to the federal government by establishing a precedent for federal intervention in economic issues. With programs designed to provide relief, recovery, and reform, federal agencies took on roles that were traditionally managed by states. This shift meant that states had to adapt to new regulations and funding structures, ultimately leading to a more centralized approach in addressing economic crises.
• Evaluate the impact of specific New Deal programs on intergovernmental relations during the 1930s.
  • Programs like FERA and the Social Security Act exemplified how The New Deal transformed intergovernmental relations by increasing federal oversight and funding for state-level initiatives. These programs required states to adhere to federal guidelines while receiving financial support, thereby intertwining state actions with federal objectives. This collaborative framework reshaped how governments at different levels worked together, marking a departure from prior practices that emphasized state autonomy.
• Assess how The New Deal's legacy continues to influence federalism and intergovernmental relations in contemporary America.
  • The legacy of The New Deal is evident today as it established a more active role for the federal government in economic policy and social welfare. Modern federalism reflects this evolution, with ongoing debates about states' rights versus federal authority in areas like healthcare and education. The intergovernmental relationships formed during The New Deal laid the groundwork for cooperative federalism, where both levels of government collaborate on policies that address societal needs, illustrating how historical events shape current governance frameworks.

Related terms

Social Security Act: A 1935 law that created a system of old-age benefits for workers, unemployment insurance, and aid for dependent children and the disabled.

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

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