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New Deal



New Deal, program adopted by President Franklin D. Roosevelt to alleviate the effects of the Great Depression. During its initial phase, the New Deal was centered on programs designed to stimulate economic activity, reduce unemployment, and introduce regulations to control business practices that threatened to deepen the depression. Measures were also taken to control the Stock Exchange. The National Recovery Administration (NRA) and the Civilian Conservation Corps (CCC) were set up to boost business and provide jobs. The second phase of the New Deal began with the Labor Relations Act (1935) which protected the right of workers to organize unions. This was followed by other steps to aid working people. The Fair Labor Standards Act (1938) set a national minimum wage. The Social Security system was established in 1935, and jobs were created by the Work Projects Administration (WPA), including the massive Tennessee Valley Authority (TVA) project. The Home Loan Corporation and the Federal Housing Administration (FHA) helped homeowners and aided recovery in the construction industry. After its initial popularity, especially among liberal and labor groups, the New Deal met increasing opposition in Congress and the Supreme Court. These controversies were largely superseded when World War II broke out, effectively ending the Great Depression. Though the term “New Deal” fell out of use, much of its legislation has remained, and it altered the direction of social legislation, increasing government intervention into the economy and changing the U.S. public's attitude to the role of the federal government.



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