New Deal - Wikipedia, the free encyclopedia
The New Deal was the name that United States President Franklin D. Roosevelt gave to a complex package of economic programs he effected between 1933 and 1935 with the goals of what historians call the 3 Rs, of giving Relief to the unemployed and badly hurt farmers, Reform of business and financial practices, and promoting Recovery of the economy during the Great Depression.
When Franklin Delano Roosevelt took office on March 4, 1933, the nation was deeply troubled. Banks in 37 states were closed and many cheques could not be cashed. The unemployment rate was 25% and higher in major industrial and mining centers. Farm prices had fallen by 50%. Mortgages were being foreclosed by tens of thousands. [1] Unemployment was still high in 1939, with the normal levels reached in 1941.
Historians distinguish a "First New Deal" (1933) and a "Second New Deal" (1934-36). Some programs were declared unconstitutional, and others were repealed during World War II; in early 1937 almost no new programs were initiated because of the opposition of the new Conservative Coalition.
The "First New Deal" (March 4, 1933) was aimed at meeting the needs of practically all major groups, from banking and railroads to industry and farming. The New Deal instituted banking reform laws, work relief programs, agricultural programs, and industrial reform (the National Recovery Administration, NRA), and the end of the gold standard.[2]
A "Second New Deal" in 1934-35 included the Wagner Act to promote labor unions, the Works Progress Administration (WPA) relief program, the Social Security Act, and new programs to aid tenant farmers and migrant workers. The Supreme Court ruled several programs unconstitutional; however, most were soon replaced, with the exception of the NRA. After 1936, the Fair Labor Standards Act of 1938 was the only major legislation; it set maximum hours and minimum wages for most categories of workers.[3]
The WPA, CCC and other relief programs were shut down during World War II by the Conservative Coalition (i.e., the opponents of the New Deal in Congress); they argued the return of full employment made them superfluous. Many regulations were ended during the wave of deregulation from 1975 to 1989. Several New Deal programs remain active, with some still operating under the original names, including the Federal Deposit Insurance Corporation (FDIC), the Federal Crop Insurance Corporation (FCIC), the Federal Housing Administration (FHA), and the Tennessee Valley Authority (TVA). The largest programs still in existence today are the Social Security System, Securities and Exchange Commission (SEC), and Fannie Mae.
