Franklin D. Roosevelt took office in 1933 with the American economy in freefall. What he did next changed the relationship between the federal government and the American people permanently.
The Crisis FDR Inherited
When Roosevelt was inaugurated on March 4, 1933, the United States was in the worst economic depression in its history. Unemployment stood at roughly 25%. Banks were failing at a rate of hundreds per month — by inauguration day, governors in 38 states had already declared banking holidays to stop the runs. The stock market had lost 89% of its value from its 1929 peak. In his inaugural address, Roosevelt gave the country what it needed most before policy: confidence. "The only thing we have to fear is fear itself."
The First Hundred Days
Roosevelt moved at a speed that no modern administration has matched. In his first hundred days, Congress passed an astonishing volume of legislation at his request: the Emergency Banking Act (which stabilized the banking system within days), the Agricultural Adjustment Act (which raised farm prices by reducing production), the National Industrial Recovery Act (which established industry codes and labor protections), the Tennessee Valley Authority Act (which brought electricity to the rural South), the Securities Act (which began regulating stock markets), the Federal Emergency Relief Act (which put money directly in the hands of the unemployed), and the Glass-Steagall Act (which separated commercial from investment banking).
The Second New Deal (1935–1936)
The first New Deal had stabilized the crisis. The Second New Deal went further, reshaping the long-term architecture of American society. The Social Security Act of 1935 created old-age insurance, unemployment compensation, and aid to dependent children — programs still operating today in essentially the form FDR established. The National Labor Relations Act (Wagner Act) guaranteed workers the right to organize and bargain collectively. The Works Progress Administration (WPA) put millions of unemployed Americans to work building infrastructure, creating art, and teaching literacy.
The Debate Over the New Deal
The New Deal was controversial in its time and remains so. Supporters argue it saved capitalism by demonstrating that democratic government could manage economic crises without resorting to authoritarianism — the path taken by Germany, Italy, and the Soviet Union in the same period. Critics argue it extended the Depression by creating uncertainty for business investment and that the economy only fully recovered with World War II spending. Both claims contain elements of truth.
FDR's Legacy
Roosevelt served four terms — the only president to do so, which led directly to the 22nd Amendment limiting presidents to two terms. He led the country through both the Depression and the first years of World War II, dying in office in April 1945, four months before the war's end. His face appears on the dime. His wheelchair — he was paralyzed from the waist down by polio contracted in 1921 — was hidden from the public for the entirety of his presidency, in one of the most remarkable acts of sustained collective discretion in media history.
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Frequently Asked Questions
What was the New Deal?
The New Deal was a series of programs, public works projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt between 1933 and 1939 in response to the Great Depression. It created Social Security, the FDIC, the SEC, the TVA, and the modern framework of the American welfare state.
Did the New Deal end the Great Depression?
It substantially reduced unemployment and stabilized the banking system, but the Depression did not fully end until World War II mobilization in 1941–42 drove unemployment effectively to zero. The debate over what proportion of the recovery is attributable to New Deal programs versus wartime spending continues among economists.
Why did FDR serve four terms?
There was no constitutional limit on presidential terms until the 22nd Amendment (ratified 1951). Roosevelt was elected to four terms — 1932, 1936, 1940, and 1944 — largely because voters were reluctant to change leadership during the Depression and World War II. He died in office in April 1945, three months into his fourth term.
