Power and Reform, 1935–37
The years between 1933 and the start of 1935 are commonly called the ﬁrst New Deal. The period from 1935 until the end of 1938, usually known to historians as the second New Deal, was in many ways quite different from the ﬁrst. Much that was important about the ﬁrst New Deal continued into the second. Restructuring and regulation of the banking system and Wall Street, subsidy to reduce farm output, spending on public works through PWA and WPA to create jobs, or for other purposes through CCC and FERA, conservation and the generation of cheaper electric power through TVA – all these vital and long-lasting policy initiatives, begun during the Hundred Days, continued throughout the 1930s. Moreover, despite his campaign pledge to cut the cost of government by a quarter, Roosevelt continued to take on debt and run up big budget deﬁcits in order to stimulate the economy, raise aggregate demand and reduce unemployment.