When Franklin D. Roosevelt came into office, America was in a challenging time economically. America was in very bad shape and needed something or someone to fix the difficult times they were in. President Roosevelt than created the New Plan which he felt would’ve recovered the frail American economy. Three laws from the New Deal that are going to be talked about are the Emergency Banking Act/Federal Deposit Insurance Corporation (FDIC), National Industrial Recovery Act (NIRA), and Home Owners Loan Corporation (HOLC) / Agriculture Adjustment Administration (AAA).
The crash of the stock market brought many hard times. Franklin D. Roosevelt's New Deal was a way to fix these times. Franklin D. Roosevelt's New Deal was a plan that hoped to bring the U.S. out of the Great Depression. The New Deal consisted of giving Relief to the unemployed and badly hurt farmers, Reform of business and financial practices, and promoting Recovery of the economy during the Great Depression. This was a very intelligent plan and was well thought out. The basic undertaking was to stimulate the economy by creating jobs.
First, the Emergency Banking Act/Federal Deposit Insurance Corporation (FDIC) was made to gain the trust of American Citizens in the banks of America. Right after taking office as President, Franklin D. Roosevelt shut down all of the banks in the nation and Congress passed the Emergency Banking Act which gave the government the opportunity to inspect the health of all banks. The Federal Deposit Insurance Corporation (FDIC) was formed by Congress to insure deposits up to $5000. These measures reestablished American faith in banks. Americans were no longer scared that they would lose all of their savings in a bank failure. Government inspectors found that most banks were healthy, and two-thirds were allowed to open soon after. After reopening, deposits had exceeded withdrawals.
Second, the National Industrial Recovery Act (NIRA) was created to help workers of most...