New Deal

Definition

The New Deal was a series of federal programs and reforms implemented by President Franklin D. Roosevelt in response to the Great Depression during the 1930s. Aimed at providing relief, recovery, and reform, it marked a significant shift in the relationship between the government and the economy, promoting government intervention to stabilize and stimulate economic growth.

5 Must Know Facts For Your Next Test

1. The New Deal was launched in 1933 as a response to the economic devastation caused by the Great Depression, seeking to provide immediate relief to suffering Americans.
2. It included a wide array of programs aimed at job creation, economic stabilization, and financial reform, reshaping the American economic landscape.
3. Key components of the New Deal included the establishment of Social Security, banking reforms, and various employment initiatives like the Works Progress Administration (WPA).
4. The New Deal faced criticism from both conservatives, who believed it expanded government too much, and liberals, who argued it didn't go far enough in addressing systemic issues.
5. While the New Deal did not completely end the Great Depression, it played a crucial role in reducing unemployment and restoring public confidence in the government and economy.

Review Questions

• How did the New Deal change the role of government in the economy?
  • The New Deal fundamentally transformed the role of government in the economy by introducing extensive federal programs aimed at regulating and stabilizing economic activity. Prior to this period, government intervention was minimal; however, the New Deal established a precedent for active government involvement in economic recovery through agencies like the Civilian Conservation Corps and the Public Works Administration. This shift set a new standard for future governmental policies regarding economic crises.
• Evaluate the effectiveness of one specific New Deal program in addressing the challenges of the Great Depression.
  • The Social Security Act of 1935 is a prime example of a New Deal program that effectively addressed challenges posed by the Great Depression. It created a safety net for elderly citizens and those unable to work by establishing unemployment insurance and old-age pensions. This program not only provided financial security for vulnerable populations but also laid the foundation for future social welfare policies in the United States.
• Analyze how opposition to the New Deal reflected broader political and social tensions in America during the 1930s.
  • Opposition to the New Deal revealed significant political and social tensions within America during the 1930s. Conservatives argued that Roosevelt's policies represented an overreach of federal power and stifled free enterprise, fearing that they could lead to socialism. Conversely, some progressives criticized the New Deal for not doing enough to address racial inequalities and labor rights. This clash of ideologies highlighted divisions over the role of government in society and revealed underlying concerns about economic equity, civil rights, and social justice.

Related terms

Social Security Act: A 1935 law that established a system of old-age benefits and unemployment insurance, significantly altering the social safety net in America.

Civilian Conservation Corps (CCC): A New Deal program that employed young men in environmental conservation projects, providing jobs while addressing unemployment.

Public Works Administration (PWA): A New Deal agency that aimed to boost the economy through large-scale public works construction projects, creating jobs and improving infrastructure.