New Deal

Real GDP of the United States from 1910-1960

US Unemployment from 1910-1960

Editorial cartoon mocking FDR's "Alphabet agencies"

American union bank

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Franklin-roosevelt

The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. It was designed to help the country recover from the Great Depression. The New Deal aimed to restore prosperity to Americans, and although it did not end the Great Depression, it marked a significant shift in the role of the federal government in the economy and society.

Origins and Implementation

The New Deal was implemented in response to the Great Depression, which began with the Stock Market Crash of 1929 and led to a decade of economic hardship worldwide. Banks failed, unemployment soared, and a significant portion of the American population was impoverished. In his presidential campaign, Roosevelt promised a "new deal" for the American people, a phrase that came to symbolize his administration's efforts to combat the economic crisis.

Upon taking office in 1933, Roosevelt launched the "First New Deal," which focused on immediate relief through direct aid to the unemployed and financial assistance to businesses and banks. Key elements included the Emergency Banking Act, which stabilized the banking system, and the Civilian Conservation Corps (CCC), which provided jobs in environmental conservation projects.

The "Second New Deal," introduced in 1935, aimed at longer-term reforms. Notable programs included the Social Security Act, which established pensions for the elderly and unemployment insurance, and the National Labor Relations Act (Wagner Act), which guaranteed workers' rights to unionize and bargain collectively.

Key Programs and Agencies

Several agencies and programs were created under the New Deal to administer its various components. These included:

- Civilian Conservation Corps (CCC): Provided jobs in natural resource conservation. - Works Progress Administration (WPA): Employed millions in public works projects. - Tennessee Valley Authority (TVA): Addressed flooding, provided electricity, and improved agriculture in the Tennessee Valley. - Social Security Administration (SSA): Administered the new social security system. - Securities and Exchange Commission (SEC): Regulated the stock market and protected investors.

Impact and Legacy

The New Deal had a profound and lasting impact on the United States. It helped stabilize the economy and provided relief to millions of Americans. The New Deal also fundamentally changed the relationship between the government and the American people, with the federal government taking a more active role in the economy and welfare of its citizens.

Critics of the New Deal argue that it expanded the federal government's power too much and was too interventionist in the economy. Supporters contend that it was necessary to address the unprecedented crisis of the Great Depression and laid the foundation for future prosperity.

The New Deal's legacy includes numerous programs and agencies that continue to function today, including Social Security and the SEC. It also influenced later government initiatives aimed at economic and social reform.

Conclusion

The New Deal represents a pivotal moment in American history, reflecting a major shift in the role of the federal government. It set a precedent for federal involvement in the economy and established a safety net for the most vulnerable citizens, principles that continue to influence public policy.