The New Deals

One goal of the First and Second New Deal(s), was to reform the banking and financial area of the economy and get rid of bad investing, and change poor trading habits. On March 9th the president decided to make a "Bank Holiday", on this "holiday", all banks were shut down and congress gave the Secretary of treasury the power to examine and reopen banks as he saw fit. The Federal Deposit Insurance Corporation, created under the Glass-Steagall Act, insured an individual's savings of up to $5,000. The FDIC also regulated lending policies and prohibited banks from investing in the stock market. After the banking issue was resolved, FDR aired the first of his "fireside chats" to over 50 million radio listeners, he encouraged Americans to redeposit their money in the newly reformed banks. Americans finally became confident that their funds would be safe. After the success of the FDIC, the Securities and Exchange Commission was instituted, the SEC gave Americans more trust in the stock market. Congress also passed the Social Security Act in 1935, this created a federal fund for many workers. Social Security was paid for by a tax on every working American's paycheck. The act also created an unemployment insurance plan to provide temporary assistance to those who were out of work, while also making funds available to the blind and physically disabled. Welfare was different, rather than receiving money from paying into a fund, welfare was paid for by money given to the state by the federal government.

Many of the same programs that provided relief also aimed at economic recovery. The Public Works Administration and the Civilian Conservation Corps, put many unemployed young men to work, this not only kept them employed, but it put more money into the economy. The CCC was instituted in March of 1933, the CCC hired unemployed young men to work on conservation projects throughout the country. The men worked on restoration projects, helped improve national parks, and built many public roads.The Agricultural Adjustment Act temporarily reset prices for farm commodities, including corn, wheat, rice, milk, cotton, and livestock, and then paid

farmers to reduce production. In the start of the Depression, farmers increased production of crops which led to overproduction, and overstocked the market a surplus of goods drove prices down. The AAA, however, began paying farmers extra to plant less or destroy their surplus