New Deal

Definition

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression. It aimed to provide relief for the unemployed, stimulate economic recovery, and implement reforms to prevent future economic downturns. This transformative period reshaped the role of the federal government in American life and established a safety net for citizens.

5 Must Know Facts For Your Next Test

1. The New Deal was implemented in two phases: the First New Deal (1933-1934) focused on immediate relief and recovery efforts, while the Second New Deal (1935-1938) introduced more social welfare programs.
2. One of the key achievements of the New Deal was the establishment of the FDIC (Federal Deposit Insurance Corporation), which insured bank deposits to restore public confidence in the banking system.
3. The New Deal faced significant opposition from conservatives who believed it expanded government power too much and detracted from free market principles.
4. FDR's fireside chats were a crucial communication tool during the New Deal, as they helped to explain policies directly to the American people and build public support.
5. The legacy of the New Deal includes a lasting change in the relationship between Americans and their government, with many viewing it as a responsibility to ensure social welfare and economic stability.

Review Questions

• How did the New Deal programs specifically address the economic hardships faced by Americans during the Great Depression?
  • The New Deal programs were designed to combat the widespread unemployment and poverty caused by the Great Depression. Initiatives like the Civilian Conservation Corps (CCC) provided jobs for young men while working on conservation projects, which not only helped individuals but also improved national parks and infrastructure. Programs such as the Works Progress Administration (WPA) employed millions to build roads, schools, and hospitals, effectively reducing unemployment while revitalizing communities across America.
• Evaluate how the New Deal reshaped the role of the federal government in American society.
  • The New Deal fundamentally altered the relationship between citizens and their government by expanding federal authority and intervention in economic matters. It established programs like Social Security that provided a safety net for vulnerable populations, making government responsible for citizens' well-being. This shift led to greater expectations of government action in economic crises and laid the groundwork for future social welfare policies.
• Analyze the long-term impacts of the New Deal on American political discourse and economic policy in subsequent decades.
  • The long-term impacts of the New Deal are significant in shaping American political discourse and economic policy. It fostered a more active role for government in regulating markets and addressing social issues, which became key components of Democratic ideology. Over time, debates over government intervention versus free-market principles continued to influence politics, especially during periods of economic uncertainty. The New Deal's legacy remains evident today through ongoing discussions about social security, healthcare, and federal involvement in economic recovery efforts.

Related terms

Social Security Act:

A landmark piece of legislation from 1935 that created a social insurance program designed to provide financial assistance to the elderly, disabled, and unemployed.

Civilian Conservation Corps (CCC): A New Deal program established in 1933 that provided jobs for young men in environmental conservation projects, such as reforestation and flood control.

Tennessee Valley Authority (TVA): A federally owned corporation created in 1933 to provide navigation, flood control, electricity generation, and economic development in the Tennessee Valley region.