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What is the New Deal?
The New Deal was a series of economic programmes, reforms, and public works initiatives introduced in the United States during the 1930s to address the effects of the Great Depression.
Definition
New Deal refers to the set of policies and legislation implemented under President Franklin D. Roosevelt aimed at economic recovery, financial reform, and social relief during a period of severe economic crisis.
Key Takeaways
- Introduced in response to the Great Depression.
- Focused on relief, recovery, and reform.
- Expanded the role of the federal government in the economy.
- Established long-lasting social and financial institutions.
Understanding the New Deal
The New Deal emerged after the 1929 stock market crash and the subsequent economic collapse that led to widespread unemployment, bank failures, and poverty. President Franklin D. Roosevelt launched the New Deal shortly after taking office in 1933.
The programme included public works projects to create jobs, financial reforms to stabilise the banking system, and social welfare initiatives to support vulnerable populations. Key measures included the Social Security Act, banking reforms, labour protections, and infrastructure investment.
While the New Deal did not fully end the Great Depression, it reshaped the U.S. economy and redefined the relationship between government, markets, and citizens.
Importance in Business or Economics
- Marked a shift toward active government economic intervention.
- Influenced modern fiscal policy and welfare systems.
- Stabilised financial institutions and restored public confidence.
- Set precedents for crisis response and economic reform.
Types or Variations
- Relief Programmes – Immediate assistance for the unemployed and poor.
- Recovery Programmes – Efforts to stimulate economic growth and employment.
- Reform Programmes – Long-term structural changes to prevent future crises.
Related Terms
- Great Depression
- Fiscal Policy
- Economic Depression
- Public Works Programmes
Sources and Further Reading
- Investopedia — The New Deal
- History.com — New Deal Overview
- National Archives — New Deal Records
Quick Reference
- 1930s U.S. economic reform programme
- Expanded federal economic role
- Focused on relief, recovery, and reform
Frequently Asked Questions (FAQs)
Who introduced the New Deal?
The New Deal was introduced by President Franklin D. Roosevelt.
Did the New Deal end the Great Depression?
It alleviated suffering and reformed institutions but did not fully end the Depression.
Why is the New Deal still important today?
Many modern economic policies and social programmes trace their origins to the New Deal.
