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 from 1933 to 1939. It aimed to provide relief for the unemployed, recovery of the economy, and reforms to prevent future depressions, reshaping the role of government in economic affairs and influencing party competition and polarization.

5 Must Know Facts For Your Next Test

1. The New Deal consisted of two main phases: the First New Deal (1933-1934), which focused on immediate relief and recovery, and the Second New Deal (1935-1938), which emphasized social welfare programs and reforms.
2. The New Deal significantly expanded the federal government's role in the economy and led to the establishment of several major agencies like the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC).
3. It transformed the Democratic Party into a coalition of diverse groups, including labor unions, African Americans, and intellectuals, changing the political landscape of the United States.
4. The policies implemented under the New Deal faced strong opposition from conservatives who argued it expanded government power too much and undermined free enterprise.
5. The Supreme Court initially struck down several key New Deal programs, leading to Roosevelt's controversial court-packing plan, which aimed to increase the number of justices who would support his initiatives.

Review Questions

• How did the New Deal reshape party competition in American politics during its implementation?
  • The New Deal reshaped party competition by transforming the Democratic Party into a coalition that included various groups such as labor unions, African Americans, and progressives. This coalition allowed Democrats to dominate national politics for decades following its implementation. Conversely, many conservatives shifted their support to the Republican Party in response to perceived government overreach, leading to increased polarization between the two parties.
• Evaluate how key issues addressed by the New Deal impacted policy positions within political parties during its era.
  • The New Deal addressed critical issues like unemployment, economic recovery, and social welfare, leading to significant shifts in policy positions within political parties. Democrats embraced a more interventionist approach to economics, advocating for government involvement in job creation and social safety nets. In contrast, Republicans began advocating for limited government intervention and free-market principles as a response to the expanding role of government under FDR's policies. This created a clearer ideological divide between the parties.
• Synthesize how the legacy of the New Deal influences contemporary party agendas in the context of current economic challenges.
  • The legacy of the New Deal continues to influence contemporary party agendas as economic challenges arise. The Democratic Party often refers back to New Deal principles when proposing legislation aimed at economic recovery or social welfare programs, emphasizing government intervention as a solution. Meanwhile, Republicans frequently challenge these approaches by advocating for deregulation and tax cuts. The ongoing debates over healthcare reform, minimum wage increases, and social safety nets demonstrate how foundational ideas from the New Deal are still central in shaping modern political discourse.

Related terms

Social Security Act:

A key piece of legislation passed in 1935 that established a system of old-age benefits for workers, unemployment insurance, and aid to families with dependent children.

National Industrial Recovery Act: A law enacted in 1933 that aimed to stimulate economic recovery by regulating industry and establishing fair labor standards, including minimum wages and the right to unionize.

Keynesian Economics: An economic theory advocating for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of depression.