What were the lasting social effects of the New Deal legislation?

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pohnpei397's profile pic

Posted on

The major social effect of the New Deal legislation has been to change the relationship between Americans and the federal government.  Before the New Deal, Americans generally did not expect the government to help them.  After the New Deal, we have come to expect that the government will get involved in practically every aspect of the economy in an effort to help us individually and the economy as a whole.

Let us look at three examples.  The New Deal has led to a situation in which we expect the government to provide subsidies to the agricultural sector.  This came out of such legislation as the AAA.  Second, the New Deal has caused us to expect the government to provide for our retirement (Social Security).  Finally, the New Deal has led us to expect the government to make sure that we cannot lose our money if our bank fails (FDIC). 

All of these programs and more have led us to a greater reliance on the federal government and a greater expectation that the government will be involved in most aspects of our economy.

thetall's profile pic

Posted on

President Roosevelt’s New Deal had great economic and social impacts on both the people of America and the economy as a whole. Socially, the federal government was tasked with immediate management of people’s welfare, which was not the case prior. Through this mandate, the federal government developed and implemented several programs to help cushion people from the devastating effects of the Great Depression. Such plans included the pensions program and the school lunch program among others which were funded through deficit spending. To date, deficit spending is not an alien component to the federal budget.

In present day America, the federal government has rolled out numerous other programs with roots from the New Deal to help protect people in various spheres of life. Besides Social Security which is perhaps the most notable of the New Deal programs, other initiatives such as Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission among others also exist to ensure people’s interests and wellbeing are protected.


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