New Deal

Definition

The New Deal was a series of programs and reforms initiated by President Franklin D. Roosevelt in response to the Great Depression, aimed at providing relief for the unemployed, recovery of the economy, and reform of the financial system. It marked a significant expansion of the federal government's role in economic and social policy, reshaping the relationship between the government and its citizens.

5 Must Know Facts For Your Next Test

1. The New Deal introduced over 100 pieces of legislation aimed at addressing the economic crisis caused by the Great Depression, fundamentally changing the role of the federal government in American life.
2. Key programs included the Public Works Administration (PWA) and the Works Progress Administration (WPA), which focused on creating jobs through large-scale public projects.
3. The New Deal faced criticism from both the left, who felt it did not do enough to assist the poor, and from the right, who believed it expanded government power too much.
4. The Supreme Court initially struck down several New Deal measures as unconstitutional, prompting Roosevelt to propose a controversial court-packing plan to expand its size and influence.
5. The legacy of the New Deal includes a realignment of American political parties and increased expectations for government intervention in economic affairs.

Review Questions

• How did the New Deal change the role of the federal government in American society?
  • The New Deal fundamentally changed the role of the federal government by expanding its involvement in economic and social issues. Prior to the New Deal, federal intervention was minimal during economic crises. However, through programs designed for relief, recovery, and reform, the New Deal established a precedent for future government action to support citizens and regulate the economy. This shift helped redefine expectations about what government should do in times of economic hardship.
• Evaluate how successful the New Deal was in addressing unemployment during the Great Depression.
  • The New Deal made significant strides in reducing unemployment through various job creation programs like the WPA and CCC, which provided millions of jobs. By focusing on infrastructure projects, these programs not only alleviated unemployment but also improved national infrastructure. However, critics argue that while it helped many, it did not fully resolve unemployment issues until World War II stimulated further job creation.
• Discuss the long-term impacts of the New Deal on modern American politics and society.
  • The New Deal's long-term impacts are profound, reshaping American politics and society by establishing a framework for government intervention in economic matters. It led to a realignment of political parties, with many working-class voters aligning with Democrats due to their support for social programs. The expectations set by the New Deal for federal responsibility toward citizens influenced subsequent policies and reforms, establishing Social Security and other safety nets that remain critical components of American governance today.

Related terms

Social Security Act: A 1935 law that established a social insurance program designed to provide financial assistance to retirees, the unemployed, and disabled individuals.

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

Federal Deposit Insurance Corporation (FDIC): A government agency created in 1933 to provide deposit insurance to depositors in U.S. commercial banks, protecting their savings from bank failures.