The New Deal programs were created in response to the economic crisis of the 1930s, and they represented a significant expansion of the federal government's role in the economy. The five mostly agreed-upon roles of the government in an economy are:
Providing a legal framework for economic activity.
Ensuring the stability and security of the economic system.
Providing public goods and services.
Regulating economic activity.
Redistributing income and wealth.
The New Deal programs addressed all five of these roles to varying degrees. For example:
The creation of the Securities and Exchange Commission (SEC) provided a legal framework for regulating securities trading and protecting investors.
The establishment of the Federal Reserve System and the introduction of deposit insurance helped to stabilize the banking system and restore public confidence in the financial sector.
Programs such as the Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) provided public goods and services such as parks, roads, and public buildings.
The creation of the National Recovery Administration (NRA) and the Agricultural Adjustment Act (AAA) were examples of economic regulation intended to stabilize prices and promote fair competition.
Social Security and other programs provided a means of redistributing income and wealth to those in need.
While the New Deal programs were not without controversy, and some argued that they went beyond the limits of what government should do in the economy, they were generally seen as necessary and effective measures to address the economic crisis of the time. Today, they continue to serve as a model for government intervention in the economy during times of crisis.