The New Deal

There were two "new deals" during the Great Depression era-one that was aimed at restoring the economy from the top down and the other aimed at restoring the economy from the bottom up. The first new deal started with The Agricultural Adjustment Act that was passed in 1933. This act basically reduced food production and made smaller farmers go out of business. The government started with this plan because the main problem was not the amount of food they had but the distribution of goods.
The second new deal started the creation of jobs to boost the economy. Back to work programs were put in place and people started doing construction jobs. The Social Security Act was put into place in 1935 and it is still used today. It set up a modest worker-funded but federally-guaranteed pension system (quote directly from website). Higher wages in the working class were made and America soon began to slowly inch its way out of the economic pit.
The main thing that helped America out of the depression was World War II, but that's another story for a different time.


Sources:
http://iws.collin.edu/kwilkison/Online1302home/20th%20Century/DepressionNewDeal.html

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