New Deal

Definition

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt between 1933 and 1939 in response to the Great Depression. It aimed to provide relief for the unemployed, recovery of the economy, and reform of the financial system to prevent another depression. This landmark initiative reshaped the role of the federal government in American life, emphasizing direct intervention in the economy and establishing a social safety net.

5 Must Know Facts For Your Next Test

1. The New Deal was implemented in two phases: the First New Deal (1933-1934), which focused on immediate relief and recovery, and the Second New Deal (1935-1938), which emphasized social reform and long-term economic stability.
2. Key programs created during the New Deal included the Works Progress Administration (WPA), which provided jobs through public works projects, and the Agricultural Adjustment Act (AAA), which aimed to boost agricultural prices by reducing surpluses.
3. The New Deal faced significant opposition from various political groups, including conservatives who believed it expanded government too much and some progressives who thought it didn't go far enough in reforming the economy.
4. The New Deal fundamentally changed the relationship between the American public and their government, establishing expectations for federal involvement in economic security and social welfare.
5. Despite its mixed results, many New Deal programs laid the groundwork for modern social safety nets and regulatory agencies that continue to function today.

Review Questions

• How did the New Deal change the relationship between citizens and the federal government?
  • The New Deal significantly transformed the relationship between citizens and the federal government by introducing a new expectation for governmental responsibility in ensuring economic security and welfare. Through various programs aimed at job creation, financial aid, and social reform, Americans began to see the federal government as an active participant in their daily lives. This shift led to greater demand for government intervention during economic crises, establishing a precedent for future policies aimed at protecting vulnerable populations.
• Evaluate the effectiveness of key programs within the New Deal in addressing unemployment during the Great Depression.
  • Key programs such as the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) were effective in providing jobs to millions of Americans during the Great Depression. The CCC employed young men in environmental projects, while the WPA offered work on infrastructure and arts initiatives. Together, these programs not only reduced unemployment but also contributed to revitalizing local economies. However, critics argue that while these programs alleviated immediate hardship, they did not fully resolve underlying economic issues nor restore prosperity.
• Analyze how opposition to the New Deal influenced its evolution throughout its implementation.
  • Opposition from various political factions had a significant impact on how the New Deal evolved over its course. Conservatives criticized it for what they perceived as excessive government control and socialism, prompting FDR to adjust certain policies to appeal to moderates. On the other hand, some progressives felt that it did not go far enough in addressing systemic issues of inequality and exploitation. This tension forced Roosevelt to adapt his strategies, leading to a more comprehensive Second New Deal that focused on long-term reform while attempting to maintain broader political support.

Related terms

Social Security Act: A law enacted in 1935 that created a social insurance program designed to provide financial assistance to retirees and the unemployed, marking a significant expansion of the federal government's role in welfare.

Civilian Conservation Corps (CCC): A public work relief program established in 1933 that employed young men in environmental conservation projects, helping to reduce unemployment while contributing to national parks and forests.

Federal Deposit Insurance Corporation (FDIC): A government agency created in 1933 that provides deposit insurance to depositors in U.S. commercial banks, protecting people's savings and restoring trust in the banking system.