How Did The New Deal Affect The Economy

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The term “New Deal” came to refer the relief recovery, and reform programs of Roosevelt's administration. They were aimed at combating the social and economic problems created by the Great Depression. There were two phases to the New Deal. Phase I consisted of seven programs. Phase II consisted of four programs. The New Deal was a great success. The programs established created a lot of relief to the American people. Phase I consisted of a program named Federal Deposit Insurance Corporation, also known as FDIC. FDIC instilled confidence in banks by providing insurance for bank accounts with balances up to one hundred thousand dollars. The Federal Deposit Insurance Corporation was created to act as supreme supervisor of the American banking …show more content…

The FERA provided funds to help local relief agencies. It distributed about three billion to various efforts such as welfare. It was extremely successful in regenerating several federal relief programs that had been failing. In 1935, Social Security board took over. Today, the Social Security Administration has a wide variety of programs to help. Social Security is a social insurance program that consists of retirement, disability, and survivors' benefits. Phase II had less programs than Phase I but just as much success. Phase II of the New Deal, often referred to as the Second New Deal, was created two years after Roosevelt's New Deal program. The economy had only slightly improved and unemployment was still high. The Second New Deal provided social and economic legislation to benefit the masses of working people. One of the programs from Phase II of the New Deal was the Social Security Act. The Social Security Act provided unemployment insurance to workers, retirement pensions, coworkers over age of sixty-five, and funds for disabled workers, elderly, widows, and children. The act helped provide a sense of security. The Social Security Act is still in effect today. It is a great program for a lot of

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