Short Answer
The New Deal established regulatory agencies like the SEC and NLRB to oversee the economy, introduced economic stabilization policies through acts like the AAA and NIRA, and implemented social welfare programs such as Social Security and unemployment insurance to support individuals during economic hardships. These initiatives marked a major shift towards increased government intervention in economic and social issues.
Step 1: Establish Regulatory Agencies
The New Deal initiated the formation of several key regulatory agencies aimed at overseeing critical areas of the economy. Among these, the Securities and Exchange Commission (SEC) was established to monitor the stock market, while the National Labor Relations Board (NLRB) was created to oversee labor practices. These agencies were empowered to enforce regulations, ensuring that businesses adhered to newly established laws and proper practices.
Step 2: Implement Economic Stabilization Policies
Another significant aspect of the New Deal was the introduction of policies designed to stabilize economic conditions. Notable examples include the Agricultural Adjustment Act (AAA) and the National Industrial Recovery Act (NIRA). These programs provided financial subsidies and regulations aimed at farmers and various industries, allowing the government to actively influence market outcomes and balance supply and demand within the economy.
Step 3: Introduce Social Welfare Programs
The New Deal also encompassed a series of social welfare programs intended to support individuals and families during economic struggles. Important initiatives like Social Security and unemployment insurance were established to act as a financial safety net. These programs enhanced the government’s role in wealth distribution, marking a significant shift toward a more interventionist federal government in managing social and economic challenges.