💵principles of macroeconomics review

key term - New Deal

Definition

The New Deal was a series of economic programs implemented in the United States during the Great Depression of the 1930s. It was a set of policies and initiatives enacted by President Franklin D. Roosevelt to address the economic crisis and provide relief, recovery, and reform for the American people.

5 Must Know Facts For Your Next Test

  1. The New Deal was introduced by President Franklin D. Roosevelt in 1933, shortly after he took office during the Great Depression.
  2. The primary goals of the New Deal were to provide relief, recovery, and reform for the American people, addressing the economic and social challenges of the Great Depression.
  3. The New Deal involved a significant increase in the role of the federal government in the economy, with the creation of various government agencies and programs to address unemployment, financial regulation, and infrastructure development.
  4. The New Deal included measures such as the establishment of the Social Security system, the implementation of labor laws, and the creation of public works projects to provide jobs and stimulate economic growth.
  5. The New Deal was a significant shift in the balance of power between the federal government and state governments, with the federal government taking on a more active role in addressing economic and social issues.

Review Questions

  • Explain the key goals and objectives of the New Deal.
    • The primary goals of the New Deal were to provide relief, recovery, and reform for the American people during the Great Depression. The relief efforts aimed to provide immediate assistance to those in need, such as the unemployed and the poor. The recovery efforts focused on stimulating economic growth and job creation through government programs and initiatives. The reform efforts sought to address the underlying structural issues that contributed to the economic crisis, such as financial regulation and labor laws.
  • Describe the role of the federal government in the New Deal and how it shifted the balance of power between the federal and state governments.
    • The New Deal represented a significant increase in the role of the federal government in the economy and in addressing social issues. The federal government created various agencies and programs, known as the 'Alphabet Agencies,' to implement the New Deal policies. This shift towards a more active federal government role in the economy and social welfare was a departure from the previous laissez-faire approach and represented a new era of 'New Federalism,' where the federal government took on a more prominent role in addressing the challenges of the Great Depression, often at the expense of state government autonomy.
  • Evaluate the long-term impact of the New Deal on the American economy and society.
    • The New Deal had a lasting impact on the American economy and society. The establishment of the Social Security system and other social welfare programs provided a safety net for the elderly, the disabled, and the unemployed, helping to reduce poverty and improve the standard of living for many Americans. The increased regulation of the financial sector, such as the creation of the Securities and Exchange Commission, helped to prevent future financial crises. The investment in infrastructure projects and public works programs provided jobs and stimulated economic growth, while also improving the country's transportation and communication networks. However, the New Deal also faced criticism for its expansion of federal power and the perceived encroachment on states' rights. The long-term impact of the New Deal is still debated by economists and historians.