5-4.3 What was the American government’s response to the Great Depression in the New Deal policies of President Franklin Roosevelt?
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.
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.
President Franklin Roosevelt proposed a wide range of programs, called the New Deal, which
focused on three goals: relief, recovery, and 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. The Civilian Conservation Corps (CCC) was a relief program designed to provide young men who were roaming the countryside 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 to put money into the hands of consumers; who would in turn spend it, and thus help businesses to recover. Recovery programs had little immediate effect and the depression did not end until military spending for World War II put people back to work.
focused on three goals: relief, recovery, and 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. The Civilian Conservation Corps (CCC) was a relief program designed to provide young men who were roaming the countryside 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 to put money into the hands of consumers; who would in turn spend it, and thus help businesses to recover. Recovery programs had little immediate effect and the depression did not end until military spending for World War II put people back to work.
Reform programs, such as the Federal Deposit Insurance Corporation (FDIC), attempted to
reform the 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 investors. Roosevelt felt that the public view of the
banking industry was demoralized and it was essential to restore confidence in the financial
system. 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.
Workers in agriculture and domestic service, which employed many African Americans, were
not covered. Social Security had no immediate impact in ending the Depression and offering
relief to those who suffered as a result of it. It has provided a secure retirement for many citizens
and significantly reduced poverty among the elderly since that time. 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 federal government greatly increased as a result of the New Deal response to the Great Depression. Some of the New Deal programs, such as Social Security and the FDIC, are still in use today.
reform the 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 investors. Roosevelt felt that the public view of the
banking industry was demoralized and it was essential to restore confidence in the financial
system. 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.
Workers in agriculture and domestic service, which employed many African Americans, were
not covered. Social Security had no immediate impact in ending the Depression and offering
relief to those who suffered as a result of it. It has provided a secure retirement for many citizens
and significantly reduced poverty among the elderly since that time. 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 federal government greatly increased as a result of the New Deal response to the Great Depression. Some of the New Deal programs, such as Social Security and the FDIC, are still in use today.
Early Finisher Activity: Read closely in Reading A-Z Dust Bowl Disaster (pages 19-21).Think about how you believe the American people felt at that time.