Roosevelt's New Deal During The Great Depression

Roosevelt’s New Deal was intended to help the economy get back on its feet from the Great Depression through his ideology of “economic planning and government spending to help the poor” (Nash 715). He proposed reform, relief, and recovery as a way of dividing and the programs that were to come that would correct some parts of the economy that allowed for the stock market crash of 1929. The Banking Act of 1933, a baking reform program under the New Deal, helped “strengthen the Federal Reserve system, established the Federal Deposit Insurance Corporation (FDIC), and insured individual deposits up to $5,000…” (Nash 717). Banks initially were opposed to this legislation, but Americans began to trust banks with the knowledge that they have government insurance over money they deposit. The Economy act, another reformatory act, decreased government spending with a “15 percent reduction in government salaries and a reorganization of federal agencies to save money” (Nash 717).
Many Americans were homeless and unemployed, so Roosevelt proposed the Federal Emergency Relief Program that gave “$500 million in direct grants to cities and states…” (Nash 718). Roosevelts also created the Civil Works Administration, that was stated to not always be effective. However, this program at the time put over “4 million people to work on various state, municipal, and federal projects…” that greatly aided in the stimulation of the economy (Nash 718). The Public Works Administration also heavily stimulated the economy through government spending. Government spending went towards constructing public buildings such as schools, hospitals, and courthouses. Roosevelt also came up with the Agricultural Adjustment Act as a solution to the crises dealing with agricultural foreclosures ad evictions. The AAA “sought to control the overproduction of basic commodities” to help farmers that lost their previous “purchasing power” (Nash