• Crafted by Roosevelt
  • Policies within were influenced by Keynes' theories
  • Outlines principles that suggested more government involvement during an economic and social crisis
  • In a time of recession, create jobs for people so they can stimulate the economy
    • Increase government spending
  • Series of social programs that focused on relief for the unemployed, reform for the economy and recovery from The Depression
  • Equalizing power among businesses, consumers, farmers and workers
  • Unions and various social programs were created and still hold an important role in our economy and society today
  • Banking system was stabilized [1]

Significance and Relation to the Ebb and Flow of Liberal Economics

The Golden Gate Bridge was an example of a project that created jobs for people
The New Deal introduced an expansion of government involvement that the United States had never seen before, in their primarily classical liberal economy. The New Deal was a response to the instability and pain the forces of the free market naturally caused. New Dealers believed it was the government's responsibility to protect citizens from the upheaval the free market can cause, while still protecting essential freedoms. The New Deal allowed liberalists to see that liberal ideals go beyond the rights and freedoms of industrialists; it also applies to citizens who need protection from the uncertainties of the market. This started the shift from classical to modern liberalism.


[1] Fielding, J. (2009). Chapter 6: The Evolution of modern liberalism. In L. M. Linton & M. Schwalbe (Eds.), Perspectives on Ideology (pp. 199-200). Ontario, Canada: Oxford University Press