The New Deal

The New Deal was the name President franklin roosevelt gave to the series of programs between 1933-37 with the goal of relief, recovery and reform of the United States economy during the great depression

The New Deal had three components: direct relief, economic recovery, and financial reform; these were also called the 'Three Rs'.

Relief was the immediate effort to help the one-third of the population that was hardest hit by the depression.

Reform was based on the assumption that the depression was caused by the inherent instability of the market and that government intervention was necessary to rationalize and stabilize the economy, and to balance the interests of farmers, business and labor

Recovery was the effort in numerous programs to restore the economy to normal health. By most economic indicators this was achieved by 1937--except for unemployment, which remained stubbornly high until World War II began.

wikipedia

President Franklin Rossevelt took office in 1932 when America was in a terrible depression marked by iverwhelming unemployment. One of the causes was the lack of controls over the financial world that led to the stock market crash of 1929. The New Deal was his policy to create jobs and place more stringent controls over banks and the stock market. In essence, aside from instituting new laws he had each government department set aside a major part of their budgets to create jobs. Essentially, this was "priming the pump." Many new jobs were created in the arts, transportation, agriculture, etc. People got back to work and began spending. This policy along with the war effort gotAmerica out of the depression.