The New Deal
- The New Deal was a set of domestic policies enacted under President Franklin D. Roosevelt that dramatically expanded the federal government’s role in the economy in response to the Great Depression.
- Historians commonly speak of a First New Deal (1933-1934), with the “alphabet soup” of relief, recovery, and reform agencies it created, and a Second New Deal (1935-1938) that offered further legislative reforms and created the groundwork for today’s modern social welfare system.
- It was the massive military expenditures of World War II, not the New Deal, that eventually pulled the United States out of the Great Depression.
Origins of the New Deal
- relief (for the unemployed)
- recovery (of the economy through federal spending and job creation), and
- reform (of capitalism, by means of regulatory legislation and the creation of new social welfare programs).