1. 15.5 The Impact of the New Deal
What was the legacy of the New Deal?

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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