Explain the goals and outcomes of the New Deal policies implemented by FDR during the Great Depression.

Summary: What's the Point of the New Deal Anyway? The New Deal, crafted by Franklin D. Roosevelt (FDR), was America's emergency toolkit to fight the economic catastrophe that was the Great Depression. When you get down to it, FDR and his team designed the New Deal for three main purposes: to give immediate relief to the desperate, help the economy recover, and reinvent the rules (reform) so it wouldn’t happen again. If you’re hazy on the details—how those policies looked on the ground, what actually worked, where trade law and global standards come in, and how people disagreed—this piece will break it all down. I'll weave in expert commentary, real historic examples, data snapshots, and the classic tale of what happens when bold regulation meets the raw chaos of the 1930s (plus, a few mistakes that are all too human). Oh, and yes, I've made my own rookie errors soaking up New Deal history, so expect some asides and personal takes. What’s a “New Deal,” And What Problems Did It Tackle? Back in 1933, America was in a really bad spot. According to data archived by the U.S. National Archives (source), unemployment was at about 25%, and banks were failing left and right. The Dust Bowl had destroyed countless farms. You had people living in cardboard shacks under bridges. Bank runs, no jobs, breadlines. It was as messy as economic collapse gets. FDR’s New Deal promised “bold, persistent experimentation.” His main idea was to try anything that would get the country back on its feet, and unlike some today, he wasn’t especially fussed about free markets vs. government intervention—if something worked, keep it. If not, junk it. The goals lined up in three big buckets: Relief: Give immediate aid to suffering people (think: food, shelter, cash jobs). Recovery: Jump-start the economy so businesses could reopen and hire again. Reform: Change laws and regulation so a crash like this wouldn’t happen again. Step 1: Relief — Imagine Waiting in an Endless Soup Line (Been There...Sort Of) Let me put you in my shoes for a sec—I once took a “Great Depression simulation” class, where we tried living on 25 cents a day and applied for “New Deal aid” by filling out pointless paperwork (don’t ask about the can of cold beans I actually ate). The closest analogue in history: the short-lived Federal Emergency Relief Administration (FERA, created by Executive Order 6176), which just sent money to states to keep people alive. The Living New Deal archives show how FERA put $500 million into relief payments and work. It wasn’t glamorous, but the CCC (Civilian Conservation Corps) and WPA (Works Progress Administration) are why you still see old trails, parks, bridges—millions were put to work on public projects. It’s kinda wild to realize, while hiking a National Park trail, that it’s part of America’s emergency economic patchwork from the ‘30s. The actual “work relief” process was more clunky than heroic: you did a task, got paid a bit, maybe ate in a communal mess hall, sent money home. Pro tip: If you’re ever at a WPA-era library or school (like the one still standing in my hometown), just check the cornerstone—most are literally stamped with “Built by WPA.” Emoji-worthy! Step 2: Recovery — Rebuilding the Sputtering Economic Engine Here’s where things get more complicated. Recovery meant rescuing industries and banks so people could get back to work for real, not just on relief rolls. Roosevelt’s crew tried a bunch of grand, sometimes clumsy, sometimes visionary programs—some got challenged right up to the Supreme Court. Banking: First move—close every bank (literally, a “Bank Holiday”) and reopen only the safe ones, enforced under the Emergency Banking Act (source). After the chaos, most banks survived. Psychological boost: people trusted banks again. Industry: The National Industrial Recovery Act (NIRA), which made government and business partners. Fact: its Blue Eagle logo was everywhere, but the NIRA itself was called unconstitutional by the Supreme Court in 1935. The spirit, though, stuck around—government worked WITH business on wages, hours, and products. Farming: Many farmers were literally plowing up crops to raise prices—a wild idea, but the Agricultural Adjustment Act (AAA) made that law! Market interference, yes, but it gradually stabilized food prices. Actual recovery was uneven. Real GDP only crawled back to pre-Depression levels by WWII, according to Bureau of Economic Analysis data. Still, programs like the Tennessee Valley Authority (TVA) electrified rural regions. Visiting one of those towns, you can still see the massive hydro dams: FDR wanted to spread the modernization wealth. Step 3: Reform — Never Again (At Least, That Was the Dream) What do you do after you put out the fire? Try to fireproof the house so you don’t have to do it all again. The “reform” part of the New Deal built the US social safety net and regulatory landscape most Americans live with today. Social Security Act (1935): This is the birth of Social Security. I’ve helped my own grandparents fill out benefit forms—something totally absent before the New Deal. It’s hard to overstate how revolutionary this was at the time (US Social Security Administration, reference). SEC (Securities and Exchange Commission): Wall Street had almost no rules before the New Deal—NYC’s “curb” brokers in the ’20s gambled with smalltown savings. The SEC, established in 1934 (US SEC site), set disclosure, anti-fraud rules, etc. Banking Reform: The Glass-Steagall Act separated commercial and investment banking, something referenced directly in the Federal Reserve’s research notes (see essay). Funny, recent financial crises have re-triggered debate about just how much these reforms still need updating—but that’s a rabbit hole for another day. How Did These New Deal Objectives Play Out? A Real-World Story Let’s get specific. One of my favorite “crossover” examples involves the international trade angle of verified standards. Case: US–Canada Wheat Dispute & Trade Certification Picture this: It’s the 1930s, and Canadian wheat farmers are flooding the US with grain. The US, under New Deal rules, wants to certify “American” wheat, so local farmers benefit from price supports, but Canada claims this is a trade barrier. The dispute cut deep. US Agriculture Secretary Henry Wallace (who left a bunch of handwritten notes, see Library of Congress collection) made the case that supporting local farmers would stabilize democracy. Canada said the new US grading and “verified” origin rules cut them out unfairly. Industry expert James MacDonald recently summarized this fight on a USDA analysis call (I was on the webinar): “At the time, American export certification was a patchwork, with little resemblance to today’s WTO-compliant systems. The New Deal fixed the domestic price. International reaction was, let’s say, frosty.” This is where “verified trade” standards and the New Deal collide. Modern institutions like the World Trade Organization (WTO) now try to mediate such arguments, referencing GATT and later rules (GATT text). But the ‘30s? It was mostly political improvisation. Trade “Verification” Standards: How the US Compares Globally Here’s a snapshot from a little table I built after chatting with a friend who works in trade compliance. Even now, the way nations verify, inspect, and certify goods for trade is all over the map: Country/Region Standard Name Legal Basis Enforcement Authority United States USDA Organic, FDA, FTC guidelines, New Deal Acts US Code (e.g., 7 USC 6501, Social Security Act, Glass-Steagall) USDA, FDA, SEC European Union CE Mark, Common Agricultural Policy EU Regulations, WTO GATT/TRIPS European Commission, Member State Agencies China China Compulsory Certificate (CCC), Export Quotas Chinese Law, Ministry Directives AQSIQ, MOFCOM Canada Canadian Food Inspection Agency (CFIA) Labels Canadian Food and Drugs Act, NAFTA rules CFIA Industry Take: My friend working for a small farming exporter in upstate New York told me: “Trying to certify our apples for Europe makes New Deal paperwork look like a picnic. At least with FDR’s programs you knew who to call.” It’s a reminder: the New Deal didn’t invent modern trade law, but it set the US on a regulatory path we’re still working through (and often arguing about internationally). Expert Voices: Where Did the New Deal Succeed or Fail? Digging into outcomes, even experts disagree—sometimes fiercely. The Congressional Research Service has a thorough longitudinal analysis (CRS report): some policies, like Social Security, worked so well they’re still foundational; others, like court-tested business codes, were too unwieldly. In a recent panel (Brookings Institution, 2023), economic historian Eric Rauchway argued: “It’s not that the New Deal fixed everything, but it invented the idea that government could and should stabilize the economy before crises spiral.” But on the same panel, libertarian economist Amity Shlaes shot back, “The New Deal prolonged the Depression by undermining business confidence and raising taxes unnecessarily.” Honestly, when you read their data, they both have a point—industrial output did recover, but not as fast as, say, Canada’s or Britain’s did, possibly because US policies were so aggressive. Conclusion: The New Deal—A Messy Lifesaver, Not a Perfect Blueprint Sometimes the cleanest policies are the ones that fail. The New Deal was a sprawling bundle of messy, hands-on fixes—some went nowhere, many saved lives, and a bunch permanently changed the US economy for the better (Social Security, rural electrification, SEC rules). Contemporary economic shocks, even COVID-19 stimulus bills, carry echoes of FDR’s approach: try fast, check results, course-correct. What did I take away from digging into all this? Like any complex rescue, you’ll find botched paperwork, backroom deals, and lots of unintended winners and losers. But the guiding principle—don’t just wait on the sidelines—still resonates with policy pros today. NEXT STEPS: If you’re researching modern parallels or international disputes over government aid and verified standards, I’d recommend reading: WTO’s COVID-19 trade policy notes US Social Security history via SSA.gov World Bank’s research portal If you want to see the impact yourself, visit a local public works site from the 1930s, or try actually filling out a (simulated!) Social Security claim with New Deal-era rules—it’ll give you newfound appreciation for both government ambition and bureaucratic headaches.

Jessie's answer to: What were the main objectives of the New Deal?

Summary: What's the Point of the New Deal Anyway?

The New Deal, crafted by Franklin D. Roosevelt (FDR), was America's emergency toolkit to fight the economic catastrophe that was the Great Depression. When you get down to it, FDR and his team designed the New Deal for three main purposes: to give immediate relief to the desperate, help the economy recover, and reinvent the rules (reform) so it wouldn’t happen again. If you’re hazy on the details—how those policies looked on the ground, what actually worked, where trade law and global standards come in, and how people disagreed—this piece will break it all down. I'll weave in expert commentary, real historic examples, data snapshots, and the classic tale of what happens when bold regulation meets the raw chaos of the 1930s (plus, a few mistakes that are all too human). Oh, and yes, I've made my own rookie errors soaking up New Deal history, so expect some asides and personal takes.

What’s a “New Deal,” And What Problems Did It Tackle?

Back in 1933, America was in a really bad spot. According to data archived by the U.S. National Archives (source), unemployment was at about 25%, and banks were failing left and right. The Dust Bowl had destroyed countless farms. You had people living in cardboard shacks under bridges. Bank runs, no jobs, breadlines. It was as messy as economic collapse gets.

FDR’s New Deal promised “bold, persistent experimentation.” His main idea was to try anything that would get the country back on its feet, and unlike some today, he wasn’t especially fussed about free markets vs. government intervention—if something worked, keep it. If not, junk it. The goals lined up in three big buckets:

Relief: Give immediate aid to suffering people (think: food, shelter, cash jobs).
Recovery: Jump-start the economy so businesses could reopen and hire again.
Reform: Change laws and regulation so a crash like this wouldn’t happen again.

Step 1: Relief — Imagine Waiting in an Endless Soup Line (Been There...Sort Of)

Let me put you in my shoes for a sec—I once took a “Great Depression simulation” class, where we tried living on 25 cents a day and applied for “New Deal aid” by filling out pointless paperwork (don’t ask about the can of cold beans I actually ate). The closest analogue in history: the short-lived Federal Emergency Relief Administration (FERA, created by Executive Order 6176), which just sent money to states to keep people alive. The Living New Deal archives show how FERA put $500 million into relief payments and work.

It wasn’t glamorous, but the CCC (Civilian Conservation Corps) and WPA (Works Progress Administration) are why you still see old trails, parks, bridges—millions were put to work on public projects. It’s kinda wild to realize, while hiking a National Park trail, that it’s part of America’s emergency economic patchwork from the ‘30s. The actual “work relief” process was more clunky than heroic: you did a task, got paid a bit, maybe ate in a communal mess hall, sent money home.

Pro tip: If you’re ever at a WPA-era library or school (like the one still standing in my hometown), just check the cornerstone—most are literally stamped with “Built by WPA.” Emoji-worthy!

Step 2: Recovery — Rebuilding the Sputtering Economic Engine

Here’s where things get more complicated. Recovery meant rescuing industries and banks so people could get back to work for real, not just on relief rolls. Roosevelt’s crew tried a bunch of grand, sometimes clumsy, sometimes visionary programs—some got challenged right up to the Supreme Court.

Banking: First move—close every bank (literally, a “Bank Holiday”) and reopen only the safe ones, enforced under the Emergency Banking Act (source). After the chaos, most banks survived. Psychological boost: people trusted banks again.
Industry: The National Industrial Recovery Act (NIRA), which made government and business partners. Fact: its Blue Eagle logo was everywhere, but the NIRA itself was called unconstitutional by the Supreme Court in 1935. The spirit, though, stuck around—government worked WITH business on wages, hours, and products.
Farming: Many farmers were literally plowing up crops to raise prices—a wild idea, but the Agricultural Adjustment Act (AAA) made that law! Market interference, yes, but it gradually stabilized food prices.

Actual recovery was uneven. Real GDP only crawled back to pre-Depression levels by WWII, according to Bureau of Economic Analysis data. Still, programs like the Tennessee Valley Authority (TVA) electrified rural regions. Visiting one of those towns, you can still see the massive hydro dams: FDR wanted to spread the modernization wealth.

Step 3: Reform — Never Again (At Least, That Was the Dream)

What do you do after you put out the fire? Try to fireproof the house so you don’t have to do it all again. The “reform” part of the New Deal built the US social safety net and regulatory landscape most Americans live with today.

Social Security Act (1935): This is the birth of Social Security. I’ve helped my own grandparents fill out benefit forms—something totally absent before the New Deal. It’s hard to overstate how revolutionary this was at the time (US Social Security Administration, reference).
SEC (Securities and Exchange Commission): Wall Street had almost no rules before the New Deal—NYC’s “curb” brokers in the ’20s gambled with smalltown savings. The SEC, established in 1934 (US SEC site), set disclosure, anti-fraud rules, etc.
Banking Reform: The Glass-Steagall Act separated commercial and investment banking, something referenced directly in the Federal Reserve’s research notes (see essay).

Funny, recent financial crises have re-triggered debate about just how much these reforms still need updating—but that’s a rabbit hole for another day.

How Did These New Deal Objectives Play Out? A Real-World Story

Let’s get specific. One of my favorite “crossover” examples involves the international trade angle of verified standards.

Case: US–Canada Wheat Dispute & Trade Certification

Picture this: It’s the 1930s, and Canadian wheat farmers are flooding the US with grain. The US, under New Deal rules, wants to certify “American” wheat, so local farmers benefit from price supports, but Canada claims this is a trade barrier.

The dispute cut deep. US Agriculture Secretary Henry Wallace (who left a bunch of handwritten notes, see Library of Congress collection) made the case that supporting local farmers would stabilize democracy. Canada said the new US grading and “verified” origin rules cut them out unfairly.

Industry expert James MacDonald recently summarized this fight on a USDA analysis call (I was on the webinar): “At the time, American export certification was a patchwork, with little resemblance to today’s WTO-compliant systems. The New Deal fixed the domestic price. International reaction was, let’s say, frosty.”

This is where “verified trade” standards and the New Deal collide. Modern institutions like the World Trade Organization (WTO) now try to mediate such arguments, referencing GATT and later rules (GATT text). But the ‘30s? It was mostly political improvisation.

Trade “Verification” Standards: How the US Compares Globally

Here’s a snapshot from a little table I built after chatting with a friend who works in trade compliance. Even now, the way nations verify, inspect, and certify goods for trade is all over the map:

Country/Region	Standard Name	Legal Basis	Enforcement Authority
United States	USDA Organic, FDA, FTC guidelines, New Deal Acts	US Code (e.g., 7 USC 6501, Social Security Act, Glass-Steagall)	USDA, FDA, SEC
European Union	CE Mark, Common Agricultural Policy	EU Regulations, WTO GATT/TRIPS	European Commission, Member State Agencies
China	China Compulsory Certificate (CCC), Export Quotas	Chinese Law, Ministry Directives	AQSIQ, MOFCOM
Canada	Canadian Food Inspection Agency (CFIA) Labels	Canadian Food and Drugs Act, NAFTA rules	CFIA

Industry Take: My friend working for a small farming exporter in upstate New York told me: “Trying to certify our apples for Europe makes New Deal paperwork look like a picnic. At least with FDR’s programs you knew who to call.” It’s a reminder: the New Deal didn’t invent modern trade law, but it set the US on a regulatory path we’re still working through (and often arguing about internationally).

Expert Voices: Where Did the New Deal Succeed or Fail?

Digging into outcomes, even experts disagree—sometimes fiercely. The Congressional Research Service has a thorough longitudinal analysis (CRS report): some policies, like Social Security, worked so well they’re still foundational; others, like court-tested business codes, were too unwieldly.

In a recent panel (Brookings Institution, 2023), economic historian Eric Rauchway argued: “It’s not that the New Deal fixed everything, but it invented the idea that government could and should stabilize the economy before crises spiral.” But on the same panel, libertarian economist Amity Shlaes shot back, “The New Deal prolonged the Depression by undermining business confidence and raising taxes unnecessarily.” Honestly, when you read their data, they both have a point—industrial output did recover, but not as fast as, say, Canada’s or Britain’s did, possibly because US policies were so aggressive.

Conclusion: The New Deal—A Messy Lifesaver, Not a Perfect Blueprint

Sometimes the cleanest policies are the ones that fail. The New Deal was a sprawling bundle of messy, hands-on fixes—some went nowhere, many saved lives, and a bunch permanently changed the US economy for the better (Social Security, rural electrification, SEC rules). Contemporary economic shocks, even COVID-19 stimulus bills, carry echoes of FDR’s approach: try fast, check results, course-correct.

What did I take away from digging into all this? Like any complex rescue, you’ll find botched paperwork, backroom deals, and lots of unintended winners and losers. But the guiding principle—don’t just wait on the sidelines—still resonates with policy pros today.

NEXT STEPS: If you’re researching modern parallels or international disputes over government aid and verified standards, I’d recommend reading:

WTO’s COVID-19 trade policy notes
US Social Security history via SSA.gov
World Bank’s research portal

If you want to see the impact yourself, visit a local public works site from the 1930s, or try actually filling out a (simulated!) Social Security claim with New Deal-era rules—it’ll give you newfound appreciation for both government ambition and bureaucratic headaches.