Key Terms You Must Know

📖 Key Terms You Must Know

New Deal

FDR's programme of government action to tackle the Great Depression, launched in 1933. Built around three goals — Relief (immediate help for the suffering), Recovery (getting the economy growing again), and Reform (preventing future crashes). It created the first American welfare state and permanently changed what people expected from government.

Alphabet Agencies

The many government bodies created by the New Deal, known by their initials — CCC, AAA, TVA, NRA, WPA, SSA, etc. Each targeted a different problem. Students must know at least four of these with what they did and what they achieved.

CCC (Civilian Conservation Corps, 1933)

Employed 2.5 million young unemployed men on conservation work — planting trees, building national parks, clearing land. Provided food, clothing, accommodation, and a small wage of $30/month (of which $25 went home to families). Widely seen as one of the most successful New Deal agencies.

TVA (Tennessee Valley Authority, 1933)

Government corporation that built a series of dams on the Tennessee River to provide electricity and flood control to one of the poorest regions in America. Brought electric power to rural areas that had never had it. A rare example of the federal government directly owning and running an industry — attacked by critics as "socialism."

WPA (Works Progress Administration, 1935)

The largest of the New Deal agencies, part of the Second New Deal. Employed 8 million people building roads, bridges, schools, airports, and public buildings. Also employed artists, writers, and musicians — a recognition that cultural work mattered. Spending cut in 1937 triggered a new recession.

Social Security Act (1935)

Created old-age pensions for Americans over 65 and unemployment insurance for workers who lost their jobs. This was the foundation of the American welfare state. Still exists today — one of the most lasting achievements of the New Deal.

Wagner Act (1935)

Also called the National Labour Relations Act. Gave workers the legal right to join trade unions and collectively bargain with their employers. Employers were banned from interfering with union activity. Led to a massive growth in union membership — from 3 million to 9 million between 1933 and 1939.

Keynesian economics

The economic theory (named after British economist John Maynard Keynes) that governments should spend money during recessions to stimulate the economy. FDR's New Deal was an early application of Keynesian ideas — government spending on public works created jobs, wages were spent in shops, which created demand, which created more jobs. Critics called this wasteful; supporters said it broke the "vicious cycle" of depression.