New Deal

Definition

The New Deal refers to a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in response to the Great Depression. It aimed to provide relief for the unemployed, recovery of the economy, and reform of the financial system, establishing a precedent for increased federal government involvement in economic and social issues.

5 Must Know Facts For Your Next Test

1. The New Deal was introduced in three phases: the First New Deal (1933-1934) focused on immediate economic recovery, the Second New Deal (1935-1936) emphasized social reform, and the Third New Deal (1937-1938) aimed at further economic stimulus.
2. Major legislation during the New Deal included the National Industrial Recovery Act (NIRA) and the Agricultural Adjustment Act (AAA), which aimed to stabilize industry and agriculture.
3. The New Deal led to the creation of numerous agencies, known as alphabet agencies, like the Works Progress Administration (WPA), which employed millions in public works projects.
4. Critics of the New Deal included conservatives who believed it expanded government too much and leftists who felt it didn't go far enough in addressing wealth inequality.
5. The legacy of the New Deal continues to influence American political discourse regarding the role of government in providing social services and regulating the economy.

Review Questions

• How did the New Deal change the role of the federal government in American life?
  • The New Deal significantly expanded the role of the federal government by introducing various programs aimed at economic recovery and social welfare. It marked a shift towards more direct government intervention in the economy, addressing issues like unemployment and poverty through initiatives such as Social Security and FERA. This increase in government involvement set a new precedent for future federal actions related to economic regulation and social safety nets.
• Discuss how the New Deal affected state-federal relations during its implementation.
  • The New Deal altered state-federal relations by increasing federal authority over state matters, particularly in areas like labor regulation and economic recovery. Federal programs often superseded state policies, leading to a more centralized approach to governance. This shift raised questions about states' rights versus federal power, as states were required to comply with federal standards while implementing relief programs.
• Evaluate the long-term impacts of the New Deal on American federalism and intergovernmental relations in contemporary times.
  • The long-term impacts of the New Deal on American federalism are profound, establishing a framework for cooperative federalism where both state and federal governments share responsibilities in various social programs. This partnership has evolved over time but remains evident today as issues like healthcare and education funding continue to involve both levels of government. The New Deal's legacy also includes ongoing debates about government intervention in the economy and social policy, reflecting its lasting influence on intergovernmental relations.

Related terms

Social Security Act: A 1935 law that established a system of old-age benefits, unemployment insurance, and aid for dependent children, which became a foundational component of the American welfare state.

Federal Emergency Relief Administration (FERA): A New Deal agency created in 1933 to provide direct relief and support to those suffering from the economic hardship of the Great Depression.

Civilian Conservation Corps (CCC): A public work relief program established in 1933 that employed young men in environmental projects, such as reforestation and soil conservation.