The New Deal’s Impact on Society

Whatever its limits, the New Deal had a tremendous impact. Its ideology of social-welfare liberalism fundamentally altered Americans’ relationship to their government and provided assistance to a wide range of ordinary people: the unemployed, the elderly, workers, and the poor. In doing so, New Dealers created a sizable federal bureaucracy: the number of civilian federal employees increased by 80 percent between 1929 and 1940, reaching a total of 1 million. The expenditures — and deficits — of the federal government grew at an even faster rate. In 1930, the Hoover administration spent $3.1 billion and had a surplus of almost $1 billion; in 1939, New Dealers expended $9.4 billion and ran a deficit of nearly $3 billion (still small by later standards). But the New Deal represented more than figures on a balance sheet. Across the country, the new era in government inspired democratic visions among ordinary citizens (Thinking Like a Historian).