15.5 The Impact of the New Deal What was the legacy of the New Deal?

New Deal Reforms Endure By the end of the 1930s, the economy had improved somewhat Industrial production had reached pre-Depression levels Unemployment was still high, but it was much lower than during the worst days of the Depression FDR chose not to introduce a new phase of the New Deal

Continued He didn’t want any more deficit spending, and was also becoming concerned about events in Europe, particularly the rise of Hitler People still disagree over whether the New Deal was good or bad for the country Conservatives claimed it made the government too big and too powerful Liberals thought it should have done more to change the economy

Continued The New Deal expanded the power of the federal government It gave the government and President a greater role in shaping the economy by putting millions of dollars into the economy, creating federal jobs, and regulating supply and demand The government also created agencies like the Federal Deposit Insurance Corporation (FDIC) and Securities and Exchange Commission (SEC) to regulate banking and investment activities

Continued To do this, the government went deeply into more debt The New Deal’s lasting impact comes from programs like the National Labor Relations Board (NLRB), which still mediates labor disputes, and the FDIC and SEC, which regulate banking and securities industries

Social and Environmental Effects The New Deal reforms had lasting effects; they helped make the economy more stable People’s savings are now insured Social security represents the government taking responsibility for its citizens The Second Agricultural Adjustment Act made loans to farmers, and projects helped spread electric power to rural areas

Continued FDR was also very interested in protecting the nation’s natural resources New Deal policies promoted soil conservation to prevent a second Dust Bowl The Tennessee Valley Authority (TVA) helped prevent floods and provided electricity New Deal programs also added to national park system, and set up areas to protect wildlife The TVA did contribute to polluting the area through strip mining