Final answer:
The New Deal changed U.S. political thinking by advocating for a significant role of the federal government in economic and social welfare, which contrasted with the previous focus on individualism. It set a precedent for government intervention, established deficit spending practices, and reshaped the American two-party system, particularly through the New Deal Coalition.
Step-by-step explanation:
The New Deal, initiated by President Franklin D. Roosevelt in response to the Great Depression, transformed political thinking in the United States by supporting the idea that the federal government should play a key role in the economic and social welfare of its citizens. This marked a significant departure from the previous era's emphasis on individualism and laissez-faire economic policies. The New Deal programs addressed issues through regulatory interventions, direct relief, and public works projects, altering the relationship between the government and the people. It laid the groundwork for the modern welfare state and established a precedent for government's participation in the economic health of the nation.
The Supreme Court played a role in this transformation by upholding various New Deal legislations, thereby reinforcing the legitimacy of increased government intervention. Furthermore, the acceptance of deficit spending to finance the New Deal was a notable shift in fiscal policy. The increase in the U.S. national debt from $22 billion in 1933 to $33 billion by 1936 highlighted this change, as the government sought to revitalize the economy during a period of extraordinary distress.
The New Deal Coalition showed the political impact of the New Deal, reshaping the American two-party system and creating a new base of support for the Democratic Party, that included diverse groups like union workers and the unemployed. Roosevelt's approach to governmental intervention, inspired by the economic theories of Keynes, left a legacy on American political culture that remains a topic for debate concerning the role of government in society and the economy.