Objective 5.7 -- The Legacy of The New Deal

Summary

TLDRFranklin D. Roosevelt's New Deal revolutionized America's government and economy during the Great Depression. By implementing policies that created jobs, provided direct relief, and stabilized financial markets, FDR transformed the role of the government in citizens' lives. Key legacies include Roosevelt’s leadership, Eleanor Roosevelt’s advocacy for social justice, financial regulations like the FDIC and SEC, the New Deal coalition of supporters, and the creation of Social Security. These policies reshaped the nation, establishing a government more active in economic and social welfare, a lasting influence on the American political landscape.

Takeaways

😀 FDR's New Deal fundamentally transformed America, pulling the country out of the Great Depression and reshaping government involvement in economic recovery.
😀 The New Deal's legacy includes a shift toward greater government responsibility for citizens' well-being during times of crisis.
😀 Franklin D. Roosevelt became a beloved leader during the Depression, offering hope and direct relief through job creation and economic stimulus.
😀 Eleanor Roosevelt revolutionized the role of First Lady by actively advocating for women, children, minorities, and shaping her husband's policies.
😀 Deficit spending, although disliked by FDR, became an essential tool for stimulating economic recovery by funding job-creating programs.
😀 Financial regulations like the FDIC and SEC, established by the New Deal, provide safeguards for citizens' investments and protect the banking system.
😀 The New Deal Coalition, formed by labor unions, African Americans, and other minority groups, became a foundation for the modern Democratic Party.
😀 Social Security, introduced by the New Deal, has provided a safety net for the elderly and unemployed for over 70 years.
😀 The rise of deficit spending during the New Deal has influenced modern U.S. presidents to use fiscal stimulus during economic downturns.
😀 Roosevelt's personal struggle with polio remained hidden from the public, contributing to his image as a resilient and compassionate leader.
😀 The New Deal's impact is still visible today in the ongoing role of Social Security, financial regulation, and the expanded role of government in economic affairs.

Q & A

What was the New Deal, and how did it impact America?
-The New Deal was a series of policies introduced by Franklin D. Roosevelt to address the economic challenges of the Great Depression. It created jobs, provided direct relief, and helped stimulate economic growth. It also marked a shift towards greater government responsibility for the welfare of citizens, especially in times of crisis.
How did Franklin D. Roosevelt's personal struggle with polio influence his leadership?
-FDR's struggle with polio, which resulted in the loss of the use of his legs, was largely hidden from the public. This allowed him to maintain a strong, confident image, which gave Americans hope. His resilience in overcoming personal adversity made him a beloved leader who empathized with the struggles of the public.
What role did Eleanor Roosevelt play in the New Deal?
-Eleanor Roosevelt transformed the role of the First Lady by actively participating in her husband's administration. She advocated for women, children, and minorities, and her influence helped secure the appointment of the first female cabinet member, Frances Perkins, as Secretary of Labor.
What is deficit spending, and how did it relate to the New Deal?
-Deficit spending occurs when the government spends more money than it collects in tax revenue. During the New Deal, FDR used deficit spending as a tool to stimulate the economy by creating jobs, with the expectation that new jobs would generate additional tax revenue to offset the deficit.
How did the New Deal affect the financial sector in the United States?
-The New Deal introduced financial regulations like the FDIC, which insures bank deposits, and the SEC, which oversees the stock market to prevent fraud. These measures provided security and stability, preventing financial collapses and ensuring fairness in investing.
What is the significance of the Social Security system in the legacy of the New Deal?
-The Social Security system, created during the New Deal, provides financial support to retirees, the disabled, and survivors. It has been a key part of American welfare since its inception and has helped millions of Americans during their retirement or times of unemployment.
What was the New Deal Coalition, and how did it affect American politics?
-The New Deal Coalition was a political alliance formed in the 1930s, consisting of Southern whites, African Americans, labor unions, and other minority groups who supported New Deal policies. This coalition reshaped American politics by cementing the Democratic Party as the party of working-class and minority interests.
How did deficit spending during the New Deal compare to its use by modern presidents?
-Deficit spending, initially criticized by FDR, became a widely used tool during the New Deal to boost the economy. Modern presidents, including Ronald Reagan, George W. Bush, and Barack Obama, have also used deficit spending during economic recessions to stimulate recovery.
Why did the repeal of the Glass-Steagall Act in 1999 have significant consequences?
-The Glass-Steagall Act, a product of New Deal financial regulations, separated commercial and investment banking. Its repeal in 1999 removed important oversight, which contributed to the financial collapse of 2008, demonstrating the vital role of such regulations in maintaining financial stability.
What lasting impact did the New Deal have on the role of government in American life?
-The New Deal shifted the role of government from a relatively hands-off approach to an active participant in the economy and citizens' welfare. Programs like Social Security, financial protections, and job creation policies continue to define the government’s role in American life today.