New Deal

New Deal Franklin D. Roosevelt Great Depression Economic Policies Political Programs 1930s U.S. History
The collection of political and economic policies and programs promulgated by the first two administrations of the presidency of Franklin D. Roosevelt. The New Deal policies were aimed at combating the economic miseries of the Great Depression.
On this page

Definition

The New Deal refers to a series of political and economic initiatives implemented by President Franklin D. Roosevelt in response to the Great Depression. This period, encompassing the years 1933 to 1939, aimed to provide relief for the unemployed and poor, recover the economy, and reform the financial system to prevent a future depression. The New Deal included programs such as Social Security, the Securities and Exchange Commission (SEC), the Civilian Conservation Corps (CCC), and the Works Progress Administration (WPA).

Examples of New Deal Programs

  1. Social Security Act (1935)

    • Established a system of old-age benefits for workers, benefits for the unemployed, and a program for dependent mothers and children, the blind, and the physically disabled.

  2. Civilian Conservation Corps (CCC)

    • Provided jobs for young, unmarried men to work on conservation and resource development projects.

  3. Works Progress Administration (WPA)

    • Employed millions of job seekers to carry out public works projects, including the construction of public buildings and roads.

  4. Securities and Exchange Commission (SEC)

    • Created to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting.

  5. Tennessee Valley Authority (TVA)

    • Addressed issues such as flooding, providing electricity to rural areas, and economic development in the Tennessee Valley.

Frequently Asked Questions (FAQs)

What was the primary goal of the New Deal?

  • The primary goal of the New Deal was to provide relief, recovery, and reform to address the economic hardships caused by the Great Depression.

Who was the President responsible for initiating the New Deal?

  • The New Deal was initiated by President Franklin D. Roosevelt.

How did the New Deal impact unemployment?

  • The New Deal implemented various job creation programs and initiatives aimed at reducing unemployment, which included the WPA and CCC.

What were some criticisms of the New Deal?

  • Some criticisms included that New Deal programs expanded the federal government’s role too much, caused increased national debt, and did not do enough to end segregation or address racial inequalities.

What long-term impacts did the New Deal have on American society?

  • The New Deal led to significant social safety nets, such as Social Security, reformed financial practices through the SEC, and established labor standards and infrastructure projects that have had lasting impacts.

  • Great Depression: A severe worldwide economic depression that took place predominantly during the 1930s, beginning in the United States.

  • Social Security Act: A 1935 law that created the Social Security program, providing financial assistance to the elderly, the unemployed, and the disabled.

  • Securities and Exchange Commission (SEC): A government agency created in 1934 to regulate and enforce laws regarding the securities industry.

  • Civilian Conservation Corps (CCC): A public work relief program operating from 1933 to 1942 for unemployed, unmarried men as part of the New Deal.

  • Works Progress Administration (WPA): A New Deal agency employing millions of job seekers to carry out public works projects from 1935 to 1943.

Online References

Suggested Books for Further Studies

  • “The Coming of the New Deal” by Arthur M. Schlesinger Jr.
  • “The New Deal: A Modern History” by Michael Hiltzik
  • “FDR’s Folly: How Roosevelt and His New Deal Prolonged the Great Depression” by Jim Powell
  • “Franklin D. Roosevelt and the New Deal, 1932-1940” by William E. Leuchtenburg
  • “The Age of Roosevelt: The Crisis of the Old Order” by Arthur M. Schlesinger Jr.

Fundamentals of New Deal: U.S. History Basics Quiz

### What was the main goal of the New Deal? - [ ] To increase taxes on the wealthy. - [ ] To reduce the power of the federal government. - [ ] To establish U.S. dominance in global affairs. - [x] To provide relief, recovery, and reform in response to the Great Depression. > **Explanation:** The New Deal's main goals were to provide immediate relief for the unemployed, stimulate economic recovery, and implement financial reforms to prevent future economic crises. ### Who was the President of the United States when the New Deal was implemented? - [ ] Herbert Hoover - [x] Franklin D. Roosevelt - [ ] Woodrow Wilson - [ ] Harry S. Truman > **Explanation:** The New Deal was implemented by President Franklin D. Roosevelt during his presidency starting in 1933. ### Which act, part of the New Deal, aimed at providing financial support to the elderly? - [ ] Agricultural Adjustment Act - [x] Social Security Act - [ ] National Industry Recovery Act - [ ] Federal Emergency Relief Act > **Explanation:** The Social Security Act of 1935 provided financial support to the elderly, as well as to the unemployed and disabled. ### Which New Deal program focused on job creation through public works projects? - [x] Works Progress Administration (WPA) - [ ] Federal Reserve System - [ ] Securities and Exchange Commission (SEC) - [ ] National Labor Relations Act > **Explanation:** The Works Progress Administration (WPA) provided jobs by funding public works projects such as roads, public buildings, and bridges. ### What did the Civilian Conservation Corps (CCC) focus on? - [ ] Regulating the stock market - [ ] Providing unemployment insurance - [x] Providing jobs in natural resource conservation - [ ] Reforming banking practices > **Explanation:** The CCC provided jobs for young, unmarried men in the conservation and development of natural resources. ### Which agency was created to regulate and provide oversight for financial markets? - [x] Securities and Exchange Commission (SEC) - [ ] Federal Communications Commission (FCC) - [ ] Environmental Protection Agency (EPA) - [ ] Federal Trade Commission (FTC) > **Explanation:** The Securities and Exchange Commission (SEC) was established to regulate the securities industry and enforce laws against market manipulation. ### What aspect of American infrastructure did the Tennessee Valley Authority (TVA) most directly address? - [ ] Urban development - [x] Rural electrification and economic development - [ ] Interstate highway construction - [ ] Environmental protection > **Explanation:** The Tennessee Valley Authority (TVA) focused on bringing electricity to rural communities and addressing economic development in the Tennessee Valley region. ### How did critics often view the expansion of federal power under the New Deal? - [ ] As essential to economic survival - [x] As an overreach that might threaten individual liberties - [ ] As insufficient to address economic problems - [ ] As irrelevant to modern America > **Explanation:** Critics often viewed the expansion of federal power under the New Deal as an overreach that could potentially threaten individual liberties and states' rights. ### Long-term effects of the New Deal include which of the following? - [ ] Increase in small government ideology - [ ] Dismantling of most government aid programs - [x] Establishment of enduring social safety nets - [ ] Focus on isolationist economic policies > **Explanation:** The New Deal resulted in the establishment of enduring social safety nets like Social Security, which continue to impact American society. ### Which economic principle did the New Deal primarily focus on to combat the Great Depression? - [ ] Laissez-faire economics - [ ] Supply-side economics - [ ] Laissez-faire capitalism - [x] Keynesian economics > **Explanation:** The New Deal adopted principles of Keynesian economics, involving increased government spending to stimulate economic demand and provide relief during the Great Depression.

Thank you for exploring the New Deal and its significant impact on American history through our comprehensive overview and challenging quiz questions. Keep expanding your knowledge of U.S. history!

Wednesday, August 7, 2024
New Economics
Neutrality in Accounting
Great Depression January 1, 1
Social Security Act January 1, 1

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.