Which was a guiding principle of New Deal economic policies?

Which was a guiding principle of New Deal economic policies?

• A. Government must assume greater responsibility for helping the unfortunate
• B. Expand military spending
• C. Reduce taxes on corporations
• D. Laissez-faire approach

Answer: (A)

The guiding idea behind New Deal economic policies is that the federal government must take an active role in relieving hardship and stabilizing the economy. The era introduced programs like Social Security, unemployment insurance, and large-scale public works to provide relief, create jobs, and build a safety net, signaling a shift away from hands-off approaches. This reflects the belief that government should assume greater responsibility for helping the unfortunate during a crisis. Expanding military spending wasn’t the defining aim of economic policy in the 1930s; defense priorities rose later and didn’t shape the core economic strategy. Reducing taxes on corporations wouldn’t capture the broader relief-and-reform agenda of the New Deal, which focused on public investment and regulation to revive the economy. A laissez-faire stance is the opposite of the era’s approach, since the New Deal emphasized proactive government intervention.

The guiding idea behind New Deal economic policies is that the federal government must take an active role in relieving hardship and stabilizing the economy. The era introduced programs like Social Security, unemployment insurance, and large-scale public works to provide relief, create jobs, and build a safety net, signaling a shift away from hands-off approaches. This reflects the belief that government should assume greater responsibility for helping the unfortunate during a crisis. Expanding military spending wasn’t the defining aim of economic policy in the 1930s; defense priorities rose later and didn’t shape the core economic strategy. Reducing taxes on corporations wouldn’t capture the broader relief-and-reform agenda of the New Deal, which focused on public investment and regulation to revive the economy. A laissez-faire stance is the opposite of the era’s approach, since the New Deal emphasized proactive government intervention.