As this is an essay on the New Deal and the great depression, it is required to deeply assess the impact of the New Deal. At the end of the day, the government spent billions of dollars on the New Deal programs; was its significance shown? Did the New Deal reach its aspired goals? Did it end the depression? These are the questions a person must ask when answering thus thoughts. Up to this day, the great depression is still talked about and argued about. Some people even disagree about when the depression really ended. However, Americans will never disagree that the events and memories of that horrible time period in which the economy crashed will never be forgotten. People of America today work in a “political economy that still bears the …show more content…
Throughout Hoover’s presidency, roughly 1,500 banks had closed annually resulting from “the presence of too many rural, small, undercapitalised banks, the absence of branch banking, criminal by some bankers, and a willingness to make too many speculative loans” (Badger 68). To avoid negative outbreaks, few days after becoming president, Roosevelt declared a five-day nationwide bank break to close banks for the short term. FDR hoped that a short break would give the surviving banks time to reopen on a more stable standing. More than a few days later, Congress passed the Emergency Banking Relief Act, which provided Roosevelt the authority to control banking business and overseas exchange. Several months later, Congress passed the 1933 Banking Act to protect fund deposits. The act, in turn, created the Federal Deposit Insurance Corporation (FDIC), which assures a person’s money of up to $5,000. The act also synchronized loaning guidelines and forbade banks from investing in the stock market. After the banking disaster was fixed, Roosevelt encouraged Americans to redeposit their riches in the recently opened banks. “By the end of June 90 per cent of US banks were open” (Badger