New Deal

Definition

The New Deal refers to a series of programs and policies implemented by President Franklin D. Roosevelt in response to the Great Depression during the 1930s. It aimed to provide relief for the unemployed, recovery of the economy, and reform of the financial system, fundamentally reshaping the relationship between the federal government and the states and laying the groundwork for modern American federalism.

5 Must Know Facts For Your Next Test

1. The New Deal consisted of two phases: the First New Deal (1933-1934) focused on immediate economic recovery, while the Second New Deal (1935-1938) emphasized social reform and long-term economic security.
2. The New Deal significantly expanded the role of the federal government in economic management and welfare provision, marking a departure from earlier laissez-faire policies.
3. Many of the programs established during the New Deal have had lasting impacts on American society, such as Social Security and unemployment insurance, which are still in place today.
4. The New Deal faced significant opposition from both conservatives who believed it overstepped government authority and some progressives who felt it did not go far enough in addressing social issues.
5. The Supreme Court initially ruled against several New Deal programs, leading to tensions between Roosevelt's administration and the judiciary, which ultimately affected future interpretations of federal-state relations.

Review Questions

• How did the New Deal transform the relationship between the federal government and state governments?
  • The New Deal transformed the relationship by increasing federal intervention in state affairs through various programs aimed at economic recovery and social welfare. It marked a shift towards a more centralized approach to governance where states became dependent on federal funding and guidelines for implementing relief programs. This change set a precedent for future federal involvement in state issues, reinforcing a more collaborative framework between different levels of government.
• In what ways did the New Deal address issues of unemployment and economic instability in America?
  • The New Deal tackled unemployment and economic instability through a variety of programs designed to create jobs and stimulate economic growth. Initiatives like the Civilian Conservation Corps (CCC) provided work for young men in conservation projects, while the Works Progress Administration (WPA) created millions of jobs in public infrastructure projects. These efforts not only aimed to alleviate immediate suffering but also sought to rebuild confidence in the economy by promoting public spending and investment.
• Evaluate the long-term impacts of the New Deal on American political culture and policy-making.
  • The long-term impacts of the New Deal on American political culture include an enduring belief in federal responsibility for economic welfare and a foundation for modern liberalism. The policies enacted during this time established expectations for government intervention in times of crisis, shaping how citizens view their government's role. Additionally, many New Deal programs laid the groundwork for future legislation and reforms, influencing debates on issues like healthcare, education, and social security, which continue to resonate in contemporary policy-making discussions.

Related terms

Social Security Act: A key piece of legislation from the New Deal that established a social insurance program to provide financial assistance to the elderly, unemployed, and disabled.

Federal Emergency Relief Administration (FERA): An early New Deal agency that provided direct relief to the needy and helped states with their local welfare programs.

Public Works Administration (PWA): A New Deal agency that aimed to create jobs through the construction of public works projects, such as schools, bridges, and roads.