7.6 The New Deal

FDR's Response to the Depression

Elected in 1932, Franklin D. Roosevelt launched the New Deal, a series of programs expanding federal power to fight the Great Depression. It focused on relief, recovery, and reform — providing jobs and aid, stabilizing the economy, and preventing future crises through regulation like the Glass-Steagall Act and FDIC.

Key Programs and Agencies

The First New Deal (1933) created agencies like the CCC, TVA, and NRA to provide jobs and regulate industry. The Second New Deal (1935) brought Social Security, the Wagner Act (protecting unions), and the WPA, shifting toward long-term security for workers and the elderly.

Debates and Legacy

Critics like the Supreme Court struck down NRA and AAA as unconstitutional overreach; others, like Huey Long, wanted more radical redistribution. The New Deal didn't end the Depression but permanently expanded the federal government's role in the economy and created a lasting social safety net.

Key terms

New Deal

FDR's set of programs (1933–1938) aimed at relief, recovery, and reform during the Great Depression.

Social Security Act (1935)

Established old-age pensions and unemployment insurance; part of the Second New Deal.

Wagner Act

1935 law guaranteeing workers' rights to unionize and collectively bargain.

Tennessee Valley Authority (TVA)

New Deal agency that built dams and provided electricity/jobs to the rural South.

Criticism of the New Deal

Conservatives called it government overreach; the Supreme Court struck down NRA/AAA; leftists like Huey Long wanted more radical reform.

Try an AP-style question

The New Deal's "three Rs" were…

1. rights, rules, and regulation
2. relief, recovery, and reform
3. reading, writing, and arithmetic
4. rebuilding, rest, and return