New Deal

Definition

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted in the United States during the 1930s in response to the Great Depression. Aimed at providing relief for the unemployed, recovery of the economy, and reforming the financial system to prevent a future depression, the New Deal fundamentally reshaped the role of government in American life, reflecting new fiscal policies and economic recovery strategies.

5 Must Know Facts For Your Next Test

1. The New Deal was implemented by President Franklin D. Roosevelt as a response to the economic devastation of the Great Depression, which began with the stock market crash of 1929.
2. It consisted of three main components: Relief for the unemployed, Recovery for the economy, and Reform of the financial system.
3. Key agencies created during the New Deal included the Works Progress Administration (WPA), which provided jobs in public works projects, and the Securities and Exchange Commission (SEC), which regulated the stock market.
4. The New Deal faced criticism from both the political left and right; some believed it did not go far enough in addressing economic inequality, while others argued it expanded government power too much.
5. Many programs established during the New Deal laid the foundation for modern social safety nets and continue to influence American economic policies today.

Review Questions

• How did the New Deal aim to address the economic challenges posed by the Great Depression?
  • The New Deal sought to tackle the economic challenges of the Great Depression through a combination of relief, recovery, and reform initiatives. Relief programs aimed to provide immediate assistance to those suffering from unemployment and poverty. Recovery efforts focused on revitalizing industries and agriculture, while reform measures sought to prevent future economic crises by implementing regulations in banking and finance.
• Evaluate the effectiveness of specific New Deal programs in achieving their goals during the Great Depression.
  • Specific New Deal programs like the Civilian Conservation Corps (CCC) effectively created jobs for young men while also benefiting public lands through conservation efforts. The Works Progress Administration (WPA) is another example; it employed millions in various public works projects, helping to reduce unemployment significantly. While these programs provided immediate relief and contributed to infrastructure development, their long-term effectiveness is debated, especially regarding sustainable economic recovery.
• Analyze how the New Deal transformed the relationship between the American government and its citizens.
  • The New Deal marked a significant transformation in the relationship between the American government and its citizens by expanding federal government intervention in economic affairs. The implementation of various social welfare programs established a precedent for government responsibility in ensuring citizens' well-being. This shift laid groundwork for future policies that would further entrench government involvement in health care, education, and labor rights, fundamentally altering expectations regarding governmental roles in American life.

Related terms

Social Security Act: A 1935 law that created a social insurance program designed to pay retired workers a continuing income after retirement, which became a crucial part of the New Deal.

National Industrial Recovery Act (NIRA): A 1933 law aimed at stimulating industrial production and improving labor conditions through codes of fair competition and collective bargaining rights.

Civilian Conservation Corps (CCC): A public work relief program that operated from 1933 to 1942, providing jobs for young men in environmental conservation projects.