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Development of New Deal policies and the need for the Second New Deal

7.3 The New Deal

The Progressive Era in the United States

 A Level/AS Level/O Level

History Notes

Your Burning Questions Answered!

Discuss the key factors that led to the development of the New Deal policies during the presidency of Franklin D. Roosevelt.

Analyse the impact of the First New Deal on the American economy and society, considering both its successes and limitations.

Explain the motivations and objectives behind the Second New Deal, and evaluate its effectiveness in addressing the ongoing challenges of the Great Depression.

Assess the similarities and differences between the policies of the Progressive Era and the New Deal, and consider their respective legacies in American history.

Examine the historical debates surrounding the effectiveness of the New Deal, discussing its long-term impact on the American economy, society, and political landscape.

Development of New Deal policies and the need for the Second New Deal

The Progressive Era in the United States (Early 1900s)

1. A Time of Change: The early 1900s in the US were a period of rapid industrialization and urbanization. While this brought new opportunities, it also created serious problems like poverty, inequality, and corruption. People started to demand change, and this era became known as the Progressive Era.

2. What Made It Progressive?
⭐Focus on Social Justice: Progressives believed in using government power to address social problems like poverty, child labor, and unsafe working conditions.
⭐Fighting Corruption: Reformers sought to clean up government and eliminate corruption, especially in big businesses and politics.
⭐Empowering Citizens: The Progressive Era pushed for greater participation in democracy through initiatives like the direct election of senators and women's suffrage.

3. Key Progressive Reforms:
⭐Trust-Busting: President Theodore Roosevelt broke up large monopolies (like Standard Oil) to promote fair competition.
⭐Regulation of Business: The government started regulating industries like railroads and food production to ensure fairness and safety.
⭐Consumer Protection: The Pure Food and Drug Act and the Meat Inspection Act were passed to protect consumers from dangerous products.
⭐Protecting Workers: Child labor laws were introduced, and working hours were reduced to improve conditions for workers.
⭐Women's Suffrage: The movement for women's right to vote gained momentum in this era, eventually leading to the 19th Amendment.

4. Lasting Impact: The Progressive Era laid the groundwork for many of the social and economic reforms that we still enjoy today. It also showed the power of citizen action to influence government policy.

7.3 The New Deal

1. The Great Depression: The 1920s were a time of prosperity in the US, but the stock market crash of 1929 led to a severe economic downturn known as the Great Depression. Millions lost their jobs, businesses failed, and poverty skyrocketed.

2. President Franklin D. Roosevelt (FDR): Elected in 1932, FDR promised to address the crisis through a series of programs called the New Deal. His focus was on "Relief, Recovery, and Reform."

3. The First New Deal (1933-1935):
⭐Relief: Programs were put in place to provide immediate aid to the unemployed and hungry.
⭐Federal Emergency Relief Administration (FERA): Provided direct grants to states for relief efforts.
⭐Civilian Conservation Corps (CCC): Offered jobs to young men in outdoor conservation projects.
⭐Public Works Administration (PWA): Funded construction projects to create jobs and stimulate the economy.
⭐Recovery: Measures were taken to stimulate economic growth.
⭐National Recovery Administration (NRA): Set codes for industries to regulate fair competition and wages.
⭐Agricultural Adjustment Administration (AAA): Paid farmers to reduce crop production to raise prices.
⭐Tennessee Valley Authority (TVA): Developed the Tennessee River Valley, bringing electricity, flood control, and jobs to the region.
⭐Reform: Laws were passed to prevent future financial disasters.
⭐Federal Deposit Insurance Corporation (FDIC): Insured bank deposits to protect people's savings.
⭐Securities and Exchange Commission (SEC): Regulated the stock market to prevent another crash.

4. The Second New Deal (1935-1939):
⭐Social Security Act: Established a system of retirement pensions, unemployment insurance, and aid to the disabled and elderly.
⭐Works Progress Administration (WPA): Provided jobs in construction, arts, and other public works projects.
⭐National Labor Relations Act (Wagner Act): Guaranteed workers' rights to organize unions and bargain collectively.
⭐Fair Labor Standards Act: Established minimum wage and overtime pay for workers.

5. Impact of the New Deal:
⭐Reduced Unemployment: Though the Depression didn't end immediately, the New Deal significantly reduced unemployment and provided relief to millions.
⭐Enhanced Social Welfare: The programs established a safety net for Americans, creating social security and unemployment insurance.
⭐Greater Government Role: The New Deal expanded the role of the federal government in the economy and social welfare.
⭐Long-term Impact: The New Deal's programs and policies continue to influence the way the US economy and society function today.

6. Criticism of the New Deal:
⭐Government Overreach: Some argued that the New Deal gave the government too much power and interfered with individual freedom.
⭐Inefficiency: Critics pointed to some programs' inefficiency and waste.
⭐Debt: The New Deal increased federal debt significantly.

7. Legacy of the New Deal: The New Deal remains a controversial topic, but its impact on American society is undeniable. It helped to address the economic and social challenges of the Great Depression, and its legacy continues to shape government policies and public opinion to this day.

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