Chapter 23-1: Critical Thinking # 3

Of the New Deal programs discussed in this section, which do you consider the most important? Explain your choice. Think About:

• the type of assistance offered by each program
• the scope of each program
• the impact of each program

The New Deal program focused on three general goals: relief for the needy, economic recovery, and financial reform. The most important seemed to be the financial reform. FDR made a huge effort to improve the financial reform and showed less focus on the relief for the needy and economic recovery. A huge part of the financial reform dealt with banks and the rebuilding of the people's confidence. To reorganize the banking system, the Glass-Steagall Act was passed, establishing the Federal Deposit Insurance Corporation (FDIC) (pg. 696.) The FDIC provided insurance for individual banks accounts which reassured the people that their money was safe. To rebuild financial reform Congress and the president also regulated the stock market. Due to the crash of 1929, many people lost their faith in the stock market. For this matter, the Federal Securities Act was passed, "requiring corporations to provide complete information on all stock offerings and made them liable for any misrepresentations" (pg. 696.) The financial reform focused on rebuilding the economy and their confidence in public affairs.