The New Deal 5-4.3 Explain the American government’s response to the Great Depression in the New Deal policies of President Franklin Roosevelt, including the Civilian Conservation Corps, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Social Security Act.

The Great Depression

The New Deal President Franklin Roosevelt proposed a wide range of programs to help America get out of the Great Depression. The programs were called the New Deal, which focused on three goals: Relief Recovery Reform Relief programs set out to assist with the feeding and housing of the poorest American citizens. While these programs offered relief to some in the short term, they had little lasting impact on the economy.

FDR: Franklin D. Roosevelt

Civilian Conservation Corps A relief program designed to provide young men who were roaming the countryside (hoboes) in search of work the opportunity to build parks and plant trees. The CCC could also be considered a recovery program because its purpose was also to put money into the hands of consumers and thus help businesses to recover.

The CCC

Federal Deposit Insurance Corporation FDIC The reform program called the Federal Deposit Insurance Corporation attempted to reform the banking system and prevent the conditions that caused the Great Depression. The FDIC helped to restore and maintain confidence in the banking system and prevent runs on the banks because the government insured the deposits of inventors.

The FDIC

Social Security Act Social Security was also designed to reform the system to ensure that the disabled and the elderly would have some income and that the unemployed were protected against lay-offs. Social Security had no immediate effect during the Great Depression, but it provide a secure retirement for many citizens and significantly reduce poverty among the elderly.

The Social Security Act

Securities and Exchange Commission (SEC) Finally, Roosevelt also lobbied Congress to establish new regulations on the financial sector of the economy. Congress created the Securities and Exchange Commission (SEC) to regulate trading on Wall Street and curb out-of-control high-risk investments that led to the Stock Market Crash of 1929.

The New Deal The role of the federal government greatly increased as a result of the New Deal response to the Great Depression. Programs from the New Deal such as Social Security and the FDIC are still in use today!

The New Deal