Government Reform
The Federal Deposit Insurance Corporation (FDIC) was the outcome of the National Industrial Recovery Act, primarily guaranteeing the security of depositors’ accounts. There was no insurance coverage during the Great Depression, so an individual depositor ran the risk of losing their investments if the bank made a mistake.
Another example of institutional reform is the Social Security Administration. When the country was just starting to recover, senior citizens received no social insurance, was already a rising concern. The Social Security Act, signed off in 1935, providing social insurance to retired citizens and the unemployed.
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"We weren't thinking of remaking society. What was happening was a complete change in social attitudes at the central government level... FDR was very significant in understanding how best to lead this sort of situation."
- Joe Marcus |
"The first New Deal was a radical departure from American life. It put more power in the central government. At the time it was necessary..." - Raymond Moley