Short Study Guide: The New Deal

The New Deal

* A. Franklin D. Roosevelt (FDR) and His Philosophy

* Elected in 1932 on a promise of a "New Deal."

* Believed in active government intervention to solve economic problems.

* "Relief, Recovery, and Reform" were the goals.

* Fireside Chats (radio addresses) to communicate with the public.

* B. The First New Deal (1933-1934)

* Focused on immediate relief and recovery.

* Key Agencies:

* Federal Emergency Relief Administration (FERA): Provided direct relief to the needy.

* Civilian Conservation Corps (CCC): Employed young men in environmental projects.

* Agricultural Adjustment Act (AAA): Sought to raise crop prices by paying farmers to reduce production.

* National Recovery Administration (NRA): Promoted industrial recovery through codes of fair competition (later declared unconstitutional).

* Public Works Administration (PWA): Funded large-scale public works projects.

* Federal Deposit Insurance Corporation (FDIC): Insured bank deposits to restore confidence in the banking system.

* C. The Second New Deal (1935-1938)

* Focused on long-term reform and security.

* Key Agencies and Legislation:

* Works Progress Administration (WPA): Employed millions in various projects (construction, arts, etc.).

* Social Security Act (SSA): Provided pensions for the elderly, unemployment insurance, and aid to families with dependent children and the disabled.

* National Labor Relations Act (Wagner Act): Protected workers' rights to organize and bargain collectively.

* Rural Electrification Administration (REA): Brought electricity to rural areas.

* D. Legacy and Evaluation of the New Deal

* Successes:

* Provided relief to millions.

* Reduced unemployment (though it remained high throughout the 1930s).

* Improved infrastructure.

* Created a social safety net.

* Restored faith in democracy.

* Criticisms:

* Did not end the Great Depression (World War II did).

* Some programs were inefficient or discriminatory.

* Increased the size and power of the federal government.

* Long-Term Impact:

* Changed the role of government in the economy and society.

* Established the welfare state.

* Influenced later social and economic policies.

Key Terms

* Stock Market Speculation

* Buying on Margin

* Black Tuesday

* Hoovervilles

* Breadline

* Dust Bowl

* New Deal

* Fireside Chats

* Relief, Recovery, Reform

* Alphabet Agencies (referring to the acronyms of the New Deal agencies)

* Social Security

* Welfare State