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What is meant by the term New Deal?


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The New Deal was the title given to a series of programs (policies and measures) that President Franklin D. Roosevelt initiated between 1933 and 1938. It was a plan that aims to bring economic relief, recovery and reform to the United States, which was suffering from the effects of the Great Depression. The Great Depression was the longest and most severe depression ever experienced by the industrialized Western world that began in 1929 and lasted until about 1939. It led to high unemployment, collapse of the stock market, massive bank failures and stagnant industrial production. Workers lost their jobs, farmers their land and homeowners their homes. the economic security of many people was gone and that led to widespread poverty.

The New Deal consisted of two phases: The first phase (1933–34) - launched programs that aimed to provide recovery and relief from the Great Depression through public work, agricultural and business regulation, inflation and price stabilization. The second phase of the New Deal (1935–41) - launched new programs that provided for social and economic legislation to benefit the mass of working people while, continuing with relief and recovery measures that were already in place.

Some projects of the New Deal ("Alphabet Agencies") included the; Social Security Administration (Reform) -1935, Civilian Conservation Corps (Relief) - 1933, Public Works Administration (Relief/Recovery) - 1933 and Works Progress Administration (Relief) - 1935, Agricultural Adjustment Act (Recovery) - 1933 and Federal Deposit Insurance Corp. - (Reform) just to name a few.

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