New Deal

Definition

The New Deal refers to a series of programs and policies implemented in the United States during the 1930s to combat the Great Depression. It aimed to provide relief for the unemployed, recovery of the economy, and reform of the financial system. Key features included government intervention in the economy, social welfare programs, and public works projects, which all played a significant role in shaping modern American society.

5 Must Know Facts For Your Next Test

1. The New Deal was introduced by President Franklin D. Roosevelt in response to the economic crisis of the Great Depression.
2. Key components of the New Deal included the Agricultural Adjustment Act (AAA), Civilian Conservation Corps (CCC), and National Industrial Recovery Act (NIRA), among others.
3. The New Deal helped create jobs through various public works programs, including infrastructure projects like roads and bridges.
4. Critics of the New Deal argued it expanded federal power too much, while supporters believed it was essential for economic recovery.
5. The New Deal had a lasting impact on American politics and society, establishing a precedent for increased government involvement in the economy and social welfare.

Review Questions

• How did the New Deal programs specifically address unemployment during the Great Depression?
  • The New Deal created several programs aimed at reducing unemployment through job creation. Initiatives like the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) offered millions of Americans employment in public works projects, such as building roads, bridges, and parks. These programs not only provided immediate financial relief to individuals but also contributed to the country's infrastructure development, which benefited the economy as a whole.
• Evaluate the effectiveness of the New Deal in achieving its goals of relief, recovery, and reform during the 1930s.
  • The New Deal had mixed results in achieving its goals. It successfully provided immediate relief to millions through job creation and social welfare programs, helping many families survive the economic downturn. However, while it aided in recovery efforts by stabilizing banks and boosting industrial production, it did not fully end the Great Depression. The reforms established during this time laid important groundwork for future government involvement in economic policy and set up social safety nets that continue today.
• Assess how the legacy of the New Deal continues to influence contemporary American economic policy.
  • The legacy of the New Deal is evident in contemporary American economic policy through ongoing government intervention in economic affairs. Programs like Social Security and unemployment insurance have their roots in New Deal legislation. Moreover, the concept of using fiscal policy to address economic downturns remains relevant, as seen in recent responses to economic crises. This established framework has shaped public expectations about government responsibility for economic stability and individual welfare.

Related terms

Great Depression:

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment, falling prices, and widespread poverty.

Social Security Act: A law enacted in 1935 that established a system of old-age benefits, unemployment insurance, and aid for dependent children and the disabled.

Federal Theatre Project:

A New Deal program that provided jobs for actors, musicians, and other artists while creating theater productions that reflected American life during the Great Depression.