Roosevelt and the New Deal

Franklin D. Roosevelt (FDR) was elected President in November 1932, promising a New Deal for the American people. His programme of government intervention represented a dramatic change from the laissez-faire approach of the Republican Presidents who preceded him. This lesson covers FDR's election, the key measures of the New Deal, and the debate over its success.

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The 1932 Election

Candidate	Party	Approach
Herbert Hoover	Republican	Continued to advocate rugged individualism and limited government intervention
Franklin D. Roosevelt	Democrat	Promised a "New Deal" — active government intervention to tackle the Depression

FDR won a landslide victory, carrying 42 of 48 states. His campaign was optimistic and energetic, in stark contrast to Hoover's gloomy reputation.

Exam Tip: In his inauguration speech (March 1933), FDR said, "The only thing we have to fear is fear itself." This quotation is worth learning — it encapsulates his approach of restoring confidence.

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The First Hundred Days

Immediately after taking office, FDR launched a flurry of legislation known as the First Hundred Days. He began with a bank holiday — closing all banks for four days to prevent further panic withdrawals. Only sound banks were allowed to reopen.

Key Alphabet Agencies

FDR created a series of government agencies (often known as alphabet agencies because of their abbreviations) to tackle different aspects of the Depression.

Agency	Full Name	Purpose
AAA	Agricultural Adjustment Administration	Paid farmers to produce less, raising crop prices
CCC	Civilian Conservation Corps	Provided jobs for young men in environmental conservation projects
FERA	Federal Emergency Relief Administration	Gave $500 million in direct aid to the poorest Americans
NRA	National Recovery Administration	Set fair wages, working hours, and prices in industry
PWA	Public Works Administration	Created jobs through large-scale construction projects (bridges, dams, roads)
TVA	Tennessee Valley Authority	Built dams and power stations in the Tennessee Valley, providing electricity, jobs, and flood control

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The Second New Deal (1935–1937)

By 1935, FDR faced criticism that the New Deal had not done enough. He introduced further measures.

Measure	Detail
WPA (Works Progress Administration)	Employed 8.5 million people in construction, arts, and community projects
Social Security Act (1935)	Created a national system of pensions for the elderly, unemployment insurance, and support for the disabled
Wagner Act (1935)	Gave workers the legal right to join trade unions and bargain collectively
Revenue Act (1935)	Increased taxes on the wealthy to fund New Deal programmes

Exam Tip: Be able to distinguish between the First New Deal (1933–1934, focused on emergency relief and recovery) and the Second New Deal (1935–1937, focused on longer-term reform). Examiners reward this level of detail.

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Opposition to the New Deal

The New Deal was controversial. Opposition came from both the political right and left.

Critic	Position	Argument
Republicans and big business	Right	The New Deal was too expensive, interfered with free enterprise, and was moving America towards socialism
Supreme Court	Right	Ruled the AAA and NRA unconstitutional, forcing FDR to modify his approach
Huey Long (Senator, Louisiana)	Left	The New Deal did not go far enough. Proposed a "Share Our Wealth" plan to redistribute income
Father Coughlin	Left	Radio priest who initially supported FDR but turned against him, advocating more radical redistribution
Dr Francis Townsend	Left	Proposed a generous pension scheme for the elderly that would stimulate spending

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Key Dates

Date	Event
November 1932	FDR elected President
March 1933	Inauguration; bank holiday begins
1933	First Hundred Days legislation passed
1935	Second New Deal; Social Security Act; Wagner Act; WPA created
1936	FDR re-elected in a landslide
1937	"Roosevelt Recession" — economic downturn when FDR cut spending

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Did the New Deal Work?

Successes	Limitations
Unemployment fell from 13 million (1933) to 7.7 million (1937)	Unemployment never fell below 7 million until WWII
Restored confidence in banking and the economy	The 1937 recession showed the economy was still fragile
Built lasting infrastructure (dams, roads, schools, airports)	African Americans and women benefited less than white men
Introduced social security and workers' rights	The Supreme Court struck down key measures
Gave hope and dignity to millions through work programmes	Some critics argued it created government dependency

Exam Tip: For "How far do you agree?" questions about the New Deal, always present a balanced argument. Acknowledge both successes and limitations, then give a clear judgement supported by evidence.

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Extended Worked Paragraph: Significance of the New Deal

A Q2 might ask: Explain the significance of the New Deal for the American federal government. A strong response should argue that the significance of the New Deal lies in the permanent redefinition of the relationship between the federal government and the American citizen. Before 1933, federal responsibility for employment, welfare and economic management had been minimal; the prevailing Republican philosophy treated unemployment as a private misfortune and poverty as a state or municipal concern. Roosevelt's First Hundred Days overturned this. The Emergency Banking Act (9 March 1933), the creation of the Federal Deposit Insurance Corporation (FDIC) in the Glass-Steagall Act of June 1933, the Agricultural Adjustment Administration (AAA), the National Recovery Administration (NRA), the Civilian Conservation Corps (CCC) and the Tennessee Valley Authority (TVA) established federal agencies with powers and budgets unprecedented in peacetime. The Second New Deal of 1935 extended this revolution from relief to structural reform: the Social Security Act (14 August 1935) created the first federal pension and unemployment insurance system; the Wagner Act (5 July 1935) established the National Labor Relations Board and legally protected collective bargaining; the Works Progress Administration (WPA) employed 8.5 million Americans by 1943. The significance is that these institutions became permanent features of American life: the FDIC still insures bank deposits; Social Security remains the largest federal programme; the WPA built 650,000 miles of roads, 78,000 bridges, 125,000 public buildings, and 800 airports, much of which is still in use. The New Deal therefore reshaped what Americans expected of Washington and established the "regulatory state" that defined domestic politics for the rest of the twentieth century.

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Grade 4 vs Grade 6 vs Grade 9: A Worked Contrast

Consider: "The New Deal was a success." How far do you agree?

A Grade 4 answer at the simple level describes several alphabet agencies, states that FDR helped unemployed people, and concludes yes or no without weighing evidence. Knowledge is accurate but undifferentiated.