Unemployment was at an all time high and rising, banks were going bankrupt, and people had no hope for this to change. Franklin Delano Roosevelt proposed his “New Deal” during his presidential campaign as a means to an end to this era. Before this, the federal government had a laissez-faire attitude and typically stayed out of things like business affairs and did not have rules and regulations for banks to follow. FDR’s New Deal was a set of economic programs that guaranteed every man “…the right to make a comfortable living.” In response to the banking crisis of the early 1900’s, the New Deal passed the Emergency Banking Act, the Glass-Steagall Act, and established the Federal Deposit Insurance Corporation. All of these things combined with FDR taking America off of the gold standard are what turned the American banks around. From 1929-1933, one third of America’s banks failed. After the implementation of the New Deal and these acts, by 1936, there were no banks that had failed. Another way that the New Deal altered the role of government was by associating itself into American business. FDR created the National Recovery Administration that essentially set industry codes and placed standards on things like working conditions, prices, and the amount of output a business was allowed to have. This would end up ending the competition between businesses that had placed so many people out of jobs during the Great Depression. FDR ultimately created millions of jobs and immensely aided in ending the era known as the Great Depression. The role of the American government went from one that did not interfere in the lives of Americans, to one that took great steps to make sure its people had a greater quality of
Unemployment was at an all time high and rising, banks were going bankrupt, and people had no hope for this to change. Franklin Delano Roosevelt proposed his “New Deal” during his presidential campaign as a means to an end to this era. Before this, the federal government had a laissez-faire attitude and typically stayed out of things like business affairs and did not have rules and regulations for banks to follow. FDR’s New Deal was a set of economic programs that guaranteed every man “…the right to make a comfortable living.” In response to the banking crisis of the early 1900’s, the New Deal passed the Emergency Banking Act, the Glass-Steagall Act, and established the Federal Deposit Insurance Corporation. All of these things combined with FDR taking America off of the gold standard are what turned the American banks around. From 1929-1933, one third of America’s banks failed. After the implementation of the New Deal and these acts, by 1936, there were no banks that had failed. Another way that the New Deal altered the role of government was by associating itself into American business. FDR created the National Recovery Administration that essentially set industry codes and placed standards on things like working conditions, prices, and the amount of output a business was allowed to have. This would end up ending the competition between businesses that had placed so many people out of jobs during the Great Depression. FDR ultimately created millions of jobs and immensely aided in ending the era known as the Great Depression. The role of the American government went from one that did not interfere in the lives of Americans, to one that took great steps to make sure its people had a greater quality of