the new deal

1. Definition and Purpose

  • The New Deal = set of policies under Franklin D. Roosevelt

  • Goals:

    • Relief → immediate help to people

    • Recovery → restart the economy

    • Reform → prevent future crises

  • Created many agencies (“alphabet soup”)

2. Key Laws and Programs

Major Legislation:

  • National Labor Relations Act → protected workers’ rights

  • Social Security Act → support for elderly, disabled, and families

  • Gold Reserve Act → controlled gold and currency

  • Securities Exchange Act → regulated stock market

Major Agencies:

  • CCC (Civilian Conservation Corps)

  • TVA (Tennessee Valley Authority)

  • WPA (Works Progress Administration)

  • PWA (Public Works Administration)

  • National Labor Board

3. Social Security Program (1935)

  • Funded by payroll taxes

  • Provided:

    • Pensions for retired workers

    • Aid to disabled individuals

    • Support for dependent mothers

  • Most lasting legacy of the New Deal

4. Civilian Conservation Corps (CCC)

  • Started: 1933

  • Target: young men (17–23)

  • Work:

    • Reforestation

    • Flood control

    • Park construction

    • Firefighting

  • Impact:

    • Reduced unemployment

    • Sent money to families

    • Built skills and discipline

Criticism:

  • Militarization of youth

  • Not sustainable long-term

  • Segregation of African Americans

5. Life During the Depression (Example: Carbon Hill)

  • Economy depended on mining

  • Survived mainly due to WPA jobs

  • Shows importance of government intervention

6. First New Deal vs Second New Deal

First New Deal (1933–1935):

  • Focus: economic stabilization

  • Some improvement (income +25%)

  • Still high unemployment

Second New Deal (1935–1937):

  • Focus: helping poor and workers

  • Added:

    • Social Security

    • WPA jobs

    • NYA (youth training)

  • More regulation and higher taxes on wealthy

7. Critics of the New Deal

From the Right (business leaders):

  • Too much government control

  • Formed American Liberty League

From the Left:

  • Said FDR did not go far enough

Key Figures:

  • Huey Long → “Share-the-Wealth” (redistribute wealth)

  • Francis Townsend → pensions for elderly

  • Father Coughlin → anti-bank, anti-Semitic rhetoric

8. Supreme Court Conflict

  • Court ruled some programs unconstitutional (e.g., NIRA)

  • FDR proposed court-packing plan (1937):

    • Add up to 6 new judges

  • Goal: reduce opposition

Reaction:

  • Seen as abuse of power

  • Rejected by Congress

Outcome:

  • Court later began approving New Deal laws

9. Key Themes

  • Government took active role in economy

  • Expanded idea of federal responsibility

  • Created long-term social safety nets

  • Generated controversy over power and limits

10. Core Takeaway

The New Deal stabilized the country and redefined government responsibility, but it also sparked major debates about economic control, equality, and presidential power.