What were the three main goals of the New Deal?
When U.S. President Franklin D. Roosevelt took office in 1933, he immediately developed a plan known as the New Deal to combat the Great Depression, an economic crisis that began in the late 1920s. The three main goals of the New Deal were:
- Relief for the millions of victims of the economic crisis
- Recovery from the economic crisis
- Reform of the U.S. economic system
To address the goal of relief, Roosevelt, created the Civilian Conservation Corps (CCC), and the Civil Works Administration (CWA), two agencies that provided people with emergency aid in the form of cash payments and temporary jobs. He also created the Federal Emergency Relief Administration (FERA), which provided state and local governments with grants to help the needy population.
To address the goal of recovery , Roosevelt created the Works Progress Administration (WPA) to reduce unemployment. He also created the Agricultural Adjustment Administration (AAA) to revitalize the agricultural industry, the National Recovery...
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When Franklin D. Roosevelt was inaugurated in 1933, he inherited one of the most dire and complex social and economical situations of any president in history. By 1933, the Great Depression was in full effect and the future of the United States economy was incredibly bleak. It was up to FDR to hold true to his campaign promises and pull the U.S. out of economic despair and he planned to do so with his implementation of the New Deal.
FDR's New Deal was structured into a three tiered system of Relief, Reform, and Recovery. The first tier of the New Deal, Relief, was to provide financial relief for both the general population and small scale governments i.e. city, county, and state. Relief in the New deal came in various forms; in order to curtail the massive amount of unemployment in the country, FDR created multiple agencies such as the Public Works Administration, which would provide government funding for use by local and state governments to build public structures (roads, airports, bridges etc.). The commissioning of these public structures using federal finances created an opportunity for private businesses to hire more individuals in order to be fully staffed to complete the projects, thus drastically lowering the overall unemployment rate of the country. The commissioning of public structures with federal money also made it possible for schools, streets, parks, and sewers to continue to be built and maintained during a period where financially many localities could not afford to do so without the government relief. Relief was focused on helping the people get back on their feet after suffering the effects of the Great Depression.
The second part of Roosevelt's New Deal was to begin to help the country Recover. Recovery focused on stabilizing the economy, decreasing inflation, and helping private sectors recover from the devastating impact of the Great Depression. Where relief sought to provide financial assistants to people and local governments, Recovery was the long term plan to pull the United States out of the Great Depression and to level the economy back out. the Recovery process sought to remove harmful competition from the economy, decrease inflation and stabilize prices, and create laws to protect workers and mandate better working conditions. FDR understood that while Relief was a temporary fix, Recovery was a long term strategy that would lead to the successful implementation of the New Deal's third focus: Reform.
Reform focused on the assumption that the Great Depression was the result of massive instability in the free market and that government intervention was necessary to create an atmosphere where business, labor, and the economy all functioned in harmony. Reform was FDR's plan to not only entirely end the Great Depression but to prevent a second Great Depression from ever happening again. Multiple laws were put into place to ensure a successful financial recovery and long term stability of the United States due to the New Deal's Reforms.