What Was The New Deal?

The New Deal was the name of a program of economic revival, instituted by U.S. president Franklin D. Roosevelt in the 1930s. Crushed by the Great Depression, American was in the economic doldrums, with unemployment reaching as high as 30%. Traditional economic doctrine asserted that markets were self-correcting and all the government had to do was stand patiently aside and all would ultimately be well. Roosevelt rejected this notion and decided to do what he could to stimulate economic recovery.

He introduced a number of programs through which the government itself employed vast numbers of people on public works projects. By introducing federal guarantees for the banking system, he helped restore confidence in the nation's financial infrastructure. This had been badly shaken in the previous few years when many banks collapsed. Through the Social Security Act, which provided financial aid to the elderly and the unemployed, Roosevelt went further than any previous American president in proclaiming that it was part of the proper function of government to offer help to those of its citizens who were in the most desperate need.

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