🛒principles of microeconomics 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 response 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 a comprehensive set of programs, public works projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt to address the economic crisis of the Great Depression.
  2. The New Deal aimed to provide relief for the unemployed and the poor, recover the economy through government intervention, and reform the financial system to prevent future economic crises.
  3. Key New Deal programs included the Civilian Conservation Corps (CCC), the Tennessee Valley Authority (TVA), the Federal Deposit Insurance Corporation (FDIC), and the Social Security Act.
  4. The New Deal expanded the role of the federal government in the economy and social welfare, marking a shift from the previous laissez-faire economic policies.
  5. The New Deal's policies and programs had a significant impact on the American economy and society, laying the foundation for the modern welfare state and the increased involvement of the government in economic and social affairs.

Review Questions

  • Explain the main goals and objectives of the New Deal programs.
    • The New Deal programs had three primary goals: relief, recovery, and reform. The relief efforts aimed to provide immediate assistance to the unemployed and the poor, such as through the creation of public works projects and the establishment of the Social Security system. The recovery efforts focused on stimulating the economy and promoting economic growth, while the reform measures sought to regulate the financial system and prevent future economic crises. Together, these goals were designed to address the widespread hardships of the Great Depression and lay the groundwork for a more stable and prosperous economic future.
  • Describe the impact of the New Deal on the role of the federal government in the economy and social welfare.
    • The New Deal marked a significant shift in the role of the federal government in the economy and social welfare. Prior to the New Deal, the government largely adhered to a laissez-faire economic policy, with limited involvement in the economy and social affairs. However, the New Deal programs expanded the federal government's role, as it took on a more active and interventionist approach to address the economic crisis. The government became more involved in regulating the financial system, providing social safety net programs, and investing in public works projects. This increased government involvement in the economy and social welfare laid the foundation for the modern welfare state and the greater role of the federal government in addressing economic and social challenges.
  • Analyze 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 programs and policies implemented during the New Deal era laid the groundwork for a more robust social safety net, including the creation of Social Security and other social welfare programs. These programs have continued to provide support and assistance to vulnerable populations, helping to reduce poverty and improve overall economic security. Additionally, the New Deal's regulatory reforms, such as the establishment of the FDIC, have helped to prevent future financial crises and promote economic stability. The increased involvement of the federal government in the economy and social affairs has also become a defining feature of the modern American political and economic landscape. While the New Deal faced criticism and opposition at the time, its long-term impact has been significant in shaping the role of government and the relationship between the economy and society in the United States.