Chapter 21 – T
he New Deal, 1932-1940
These questions appeared on the study guide for Test #2, but may also appear again on the Final Exam.
What was the New Deal?
When FDR took office, he immediately commenced a massive revitalization of the nation's
economy. In response to the depression that hung over the nation in the early 1930s, President
Roosevelt created many programs designed to put Americans back to work.
Roosevelt was not interested in the dole. He was was determined, rather, to preserve the pride of
American workers in their own ability to earn a living, so he concentrated on creating jobs.
is a series of economic programs implemented in the United States between 1933 and
1936. They were passed by the U.S. Congress during the first term of Franklin Delano
Roosevelt as President of the United States, which lasted from 1933 to 1937. The programs were
responses to the Great Depression, and focused on what historians call the "3 Rs": relief, recovery, and
reform. That is, relief for the unemployed and poor; recovery of the economy to normal levels; and
reform of the financial system to prevent a repeat depression. The New Deal produced a political
realignment, making the Democratic Party the majority (as well as the party which held the White
House for seven out of nine Presidential terms from 1933 to 1969), with its base in liberal ideas, big city
machines, and newly empowered labor unions, ethnic minorities, and the white South.
The Republicans were split, either opposing the entire New Deal as an enemy of business and growth,
or accepting some of it and promising to make it more efficient. The realignment crystallized into
the New Deal Coalition that dominated most American elections into the 1960s, while the opposition
Conservative Coalition largely controlled Congress from 1938 to 1964
How did the Second New Deal represent a dramatic departure from the traditional functions of
Before the 193's national political debate often revolved around the question of WHETHER the
government should intervene in the economy to HOW it should intervene -
Laissez-faire is dead - a doctrine opposing governmental interference in economic affairs beyond the
minimum necessary for the maintenance of peace and property rights
- the act presented a dramatic departure from the traditional functions of government
from the old roles of the government, which used to concentrate in economic
planning and economic redistribution, and now focused on public spending by the government. Public
spending by the government became the major tool to combat unemployment, stimulate economic
growth, and ensure economic security