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The New Deal was a major departure from the idealized American norm of free enterprise because it was a large-scale government intervention in the economy. The New Deal was implemented in response to the Great Depression, the worst economic crisis in United States history. It was a response to the failure of the free market system to provide for the public's needs. The New Deal created many government programs and regulations to restore economic stability and protect citizens from economic insecurity.
The New Deal introduced new regulations on the banking and financial industries, such as the Glass-Steagall Act, which aimed to protect consumers from risky banking practices. It also provided financial support to struggling businesses, homeowners, and unemployed individuals. The New Deal also funded large public works projects, such as the Tennessee Valley Authority, which provided electricity to rural areas.
The New Deal also established social welfare programs, such as Social Security, which provided a safety net for needy individuals. Additionally, the New Deal included labor protections, such as the National Labor Relations Act, which gave workers the right to unionize and bargain collectively with employers.
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