The New Deal

The New Deal

Franklin Roosevelt and the New Deal were like Adam and Eve: two terms one would not be spoken of without the other. Many people thought Roosevelt’s jovial personality was the reason for his success in his presidency. However, another important explanation of why FDR was ranked one of the best presidents in history, as many historians would argue, was the active role of government his administration acted in effort to rescue the country from slumps of the Great Depression. During his twelve-year terms, he established a series of programs that permanently changed the federal government and its relationship to the public. His New Deal not only concentrated on economic developments such as agricultural regulation and industrial recovery, but also tackled social problems like unemployment and working conditions. Most importantly, FDR established a social insurance system, promoting people’s welfare and society’s equity. Although it was World War II that ended the depression, FDR’s New Deal definitely produced greater, long-lasting change in American society.

Facing numerous obstacles in the economy caused by the Great Depression, Roosevelt thought it was necessary to propose new banking reform legislations. His first action was the Emergency Banking Act, a bill designed to protect the larger banks from being dragged down by the weaker, smaller banks. This bill soon resolved the immediate banking crisis. Then, Congress passed the Economy Act which cut the pensions to veterans as well as wages of government employee by as much as 15 percent, convincing the public that the federal government was in safe, trustworthy hands. In order to rebuild confidence in the stock market, Truth in Securities Act of 1933 was enacted to require corporations issuing new securities to provide full and truthful information about them to the public. Securities and Exchange Commission (SEC), established the next year, became the major organization to monitor the stock...