New Deal

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New Deal

Q: What was the purpose of the New Deal?

The United States was in the throes of the Great Depression . Banks were in crisis, and nearly a quarter of the workforce was unemployed. Wages and salaries declined significantly, as did production. U.S. President Franklin D. Roosevelt’s New Deal (1933–39) aimed to provide immediate economic relief and to bring about reforms to stabilize the economy.

Q: What were the New Deal programs and what did they do?

The Agricultural Adjustment Administration (AAA) brought relief to farmers by paying them to curtail production, reducing surpluses, and raising prices for agricultural products. The Public Works Administration (PWA) reduced unemployment by hiring the unemployed to build new public buildings, roads, bridges, and subways. The Civilian Conservation Corps (CCC) employed hundreds of thousands of young men in reforestation and flood-control work. The National Recovery Administration (NRA) established codes to eliminate unfair practices, establish minimum wages and maximum hours, and guarantee the right of collective bargaining . The Tennessee Valley Authority (TVA) brought cheap electricity to people in seven states. The Home Owners’ Refinancing Act provided mortgage relief to the unemployed. The Securities Act of 1933 provided government oversight of stock trading. The Federal Deposit Insurance Corporation (FDIC) protected depositors’ bank accounts. Later programs included the Social Security Act, the Works Progress Administration (WPA), and the National Labor Relations Act.

Q: What were the most important results of the New Deal?

The New Deal established federal responsibility for the welfare of the U.S. economy and the American people. Despite the importance of this growth of federal responsibility, perhaps the greatest achievement of the New Deal was to restore faith in American democracy at a time when many people believed that the only choice left was between communism and fascism .

Q: What New Deal programs remain in effect?

The Federal Deposit Insurance Corporation (FDIC) in banking and Fannie Mae (FNMA) in mortgage lending are among New Deal programs still in operation. Other such programs include the Securities and Exchange Commission (SEC), the Federal Housing Administration (FHA), the Farm Credit Administration, and the Federal Communications Commission (FCC). The Soil Conservation Service remains as the Natural Resources Conservation Service. Perhaps the most notable New Deal program still in effect is the national old-age pension system created by the Social Security Act (1935).

United States history

Written and fact-checked by The Editors of Encyclopaedia Britannica

Last Updated: Mar 29, 2024 • Article History

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Category: History & Society

Date:: 1933 - 1939

Location:: United States

Context:: Great Depression

Major Events:: Agricultural Adjustment Administration; National Recovery Administration; Public Works Administration; Public Works of Art Project; Tennessee Valley Authority

Key People:: Harry L. Hopkins; Charles Evans Hughes; Sam Rayburn; Franklin D. Roosevelt; Harlan Fiske Stone

On the Web:: Roosevelt House Public Policy Institute at Hunter College - The New Deal in New York City, 1933—1943 (Mar. 29, 2024)

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What was the purpose of the New Deal?

What were the New Deal programs and what did they do?

What were the most important results of the New Deal?

What New Deal programs remain in effect?

New Deal, domestic program of the administration of U.S. Pres. Franklin D. Roosevelt (FDR) between 1933 and 1939, which took action to bring about immediate economic relief as well as reforms in industry, agriculture, finance, waterpower, labour, and housing, vastly increasing the scope of the federal government’s activities. The term was taken from Roosevelt’s speech accepting the Democratic nomination for the presidency on July 2, 1932. Reacting to the ineffectiveness of the administration of Pres. Herbert Hoover in meeting the ravages of the Great Depression, American voters the following November overwhelmingly voted in favour of the Democratic promise of a ...(100 of 1171 words)

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