Did the New Deal radically alter the purpose and function of the federal government?
Was the New Deal a good deal?Since shortly after the treaty that ended World War I, the world economy struggled. Germany was straddled with harsh reparation debts and their economy stalled. Farm income in the United States fell dramatically with the end of wartime price supports, and with nearly half of the U.S. population living in rural areas, American buying power plunged. At the same time, the U.S. imposed tariffs on imported items, helping manufacturing but raising prices for consumers. The stock market boomed, and investors poured money into stocks far beyond their earning capacity. Eventually, these and other factors combined to bring the stock market crash of 1929 and the beginning of the greatest economic downturn ever experienced in the United States. Show
Herbert Hoover and the Market CrashHerbert Hoover was elected president in 1928 and assumed office while prosperity was still running high. When the market crashed in October, he and many other economists saw it as a temporary slide and predicted quick recovery. As unemployment continued to rise and business slumped, Hoover proposed some new efforts by the federal government. His main idea was to provide incentives and financial supports to business to get firms hiring and selling again. He favored lower taxes and a balanced budget. He also encouraged greater volunteer contributions to charities for the poor and unemployed, but he opposed any direct relief efforts to individuals fearing the welfare would discourage the unemployed from looking for work. New Deal ProgramsAnger against Hoover grew rapidly through 1931 and 1932, leading to the election of Franklin Delano Roosevelt. While Roosevelt also talked about balanced budgets during the campaign, he changed courses between his November election and March inaugural as national conditions became worse. With the Democratic majorities in Congress that were elected with him, Roosevelt pushed through a remarkable agenda of programs that radically changed the relationship of individuals to the federal government. The New Deal created work programs like the Works Progress Administration and the Public Works Administration that put people to work on public parks, roads, bridges and other infrastructure projects and hired teachers and artists. The Civilian Conservation Corps hired, fed and clothed teenage boys and sent most of their salaries back to support their families. The Agriculture Adjustment Act provided payments to farmers who agreed to limit their production. It was Roosevelt's policy that, in times of recession, the government should spend to spur economic growth, even if that means adding to the federal debt. While New Deal programs provided a safety net to hundreds of thousands of American families, there is debate among economic historians about their overall effectiveness. What finally ended the Depression was American entry into World War II with a military draft and government contracts for planes, tanks, ships, munitions, uniforms and farm products. However, on the political side, the hope that the New Deal offered those struggling, including many Iowa farm families, was a factor that prevented rebellions against the government at all levels. It also reconfigured the American political landscape as African Americans, other urban-based minorities and labor unions leaving the Republican Party to form a strong Democratic coalition. Supporting QuestionsHow did Franklin Roosevelt’s policies differ from Herbert Hoover's?
How did the New Deal affect the relationship between citizens and the national government?
How effective were New Deal policies in bringing relief from the effects of the Great Depression for all Americans?
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Iowa Core Social Studies Standards (9-12th Grade)Listed below are the Iowa Core Social Studies content anchor standards that are best reflected in this source set. The content standards applied to this set are high school-age level and encompass the key disciplines that make up social studies for 9th through 12th grade students.
Did the New Deal change the role of the federal government?In the short term, New Deal programs helped improve the lives of people suffering from the events of the depression. In the long run, New Deal programs set a precedent for the federal government to play a key role in the economic and social affairs of the nation.
How did the role of the federal government change after the new deal?How did the new Deal impact the federal government? It expanded the powers of the federal gov't by establishing regulatory bodies & laying the foundation of a social welfare system. In the future the gov't would regulate business & provide social welfare programs to avoid social & economic problems.
How did Roosevelt change the role of the federal government?President Roosevelt also expanded the reach of the federal government in conservation. He signed laws establishing five national parks, and broadened executive power by signing the Antiquities Act in 1906.
How did the New Deal transform government?The New Deal produced a political realignment, making the Democratic Party the majority (as well as the party that held the White House for seven out of the nine presidential terms from 1933 to 1969) with its base in progressive ideas, the South, big city machines and the newly empowered labor unions, and various ...
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