New Deal

Definition

The New Deal was a series of economic programs and reforms implemented in the United States during the Great Depression under President Franklin D. Roosevelt. It aimed to provide relief, recovery, and reform to address the devastating effects of the economic crisis and restore prosperity to the nation.

5 Must Know Facts For Your Next Test

1. The New Deal programs were designed to provide relief for the unemployed, recovery of the economy, and reform of the financial system to prevent future economic crises.
2. The New Deal led to a significant expansion of the federal government's role in the economy and social welfare, shifting the balance of power between the federal and state governments.
3. The New Deal programs included the creation of agencies such as the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC) to provide jobs and infrastructure projects.
4. The Second New Deal introduced more progressive reforms, such as the Social Security Act, the National Labor Relations Act, and the Fair Labor Standards Act.
5. The New Deal's policies and programs had a lasting impact on the role of the federal government in the economy and the social welfare of the American people.

Review Questions

• Explain how the New Deal impacted the evolution of American federalism.
  • The New Deal significantly expanded the role of the federal government in addressing economic and social issues, leading to a shift in the balance of power between the federal and state governments. The federal government took on a more active role in regulating the economy, providing social welfare programs, and intervening in areas traditionally left to the states. This increased federal involvement in state and local affairs, known as 'New Federalism,' represented a significant departure from the previous limited role of the federal government, and laid the foundation for the modern American federalist system.
• Discuss the relationship between the New Deal and the formation of political parties in the United States.
  • The New Deal had a profound impact on the development of political parties in the United States. The Democratic Party, under the leadership of President Franklin D. Roosevelt, became the dominant party during the New Deal era, as it championed the expanded role of the federal government in addressing economic and social issues. The Republican Party, in contrast, often opposed the New Deal programs, leading to a realignment of the party system. The New Deal coalition, which brought together various interest groups such as labor unions, farmers, and urban voters, helped solidify the Democratic Party's dominance for several decades, while the Republican Party struggled to adapt to the changing political landscape.
• Analyze how the New Deal influenced the design and evolution of the presidency, particularly in terms of direct presidential action.
  • The New Deal significantly expanded the powers and responsibilities of the presidency, as President Franklin D. Roosevelt took a more active and assertive role in shaping economic and social policy. The president's ability to bypass Congress and take direct action, such as through executive orders and the creation of new federal agencies, became a hallmark of the New Deal era. This increased presidential power and the use of direct presidential action to address the challenges of the Great Depression set a precedent for future presidents, who have continued to leverage the executive branch to enact their policy agendas. The New Deal's impact on the presidency has been enduring, contributing to the gradual shift towards a more powerful and activist executive branch in the modern American political system.

Related terms

New Federalism: A shift in the relationship between the federal government and state/local governments, with the federal government taking on a more active role in addressing economic and social issues.

Second New Deal: The second phase of the New Deal programs, which focused more on long-term economic and social reforms, such as the establishment of Social Security and the National Labor Relations Act.

Keynesian Economics: An economic theory developed by John Maynard Keynes that advocated for government intervention and spending to stimulate the economy and achieve full employment.