Roosevelt\'s New Deal Fiscal Reform

Roosevelt's New Deal

Fiscal Reform in the First Hundred Days of the Roosevelt Administration

The Great Depression had detrimental affects to all levels of socio-economic positions within American society. The market crash ruined millions, and many Americans were left extremely skeptical of banking organizations. Thus, when Roosevelt entered into office, the first thing to do was to reign in the banking industry. Next was to help stabilize an economy that was in its darkest time. The first Hundred Days of Roosevelt's term were embodied with an optimistic fervor that believed that a new day was just on the horizon. Many of the legislative acts during the first hundred days of Roosevelt's position in the white house focused on restricting and regulating the banking industry to better protect the American public. Many of the fiscal reforms that were imposed through legislation during this period are still adhered to today, showing the public's demand for greater security and stability when it comes to the economic structure of the United States.

One of the first things Roosevelt managed to achieve in his presidency was the establishment of greater security for the consumer in the banking industry. In the first one hundred days of his arrival into office, Roosevelt signed off on the creation of the Federal Deposit Insurance Corporation, or what is now known as the FDIC ("New Deal" 1). This was essentially an act of protecting consumers from banks falling into another pit hole that would eat up American's hard earned savings. The organization was created in June of 1933 (Federal Deposit Insurance Corporation 1). The FDIC was established to ensure bank deposits for consumers, so that future fortunes would not be lost because of bank failures in a stock market crash. It initially insured deposits of only up to $2,500, although that number has greatly increased since the early days of the FDIC ("New Deal" 1). However, this amount has increased dramatically, based on the nature of changing monetary amounts (McMahan 1). It was passed after the public has lost complete faith in the sanctity of banks after the onset of the Great Depression. In an era where the public has once again lost faith in banking institutions, the FDIC helps provide some sense of security that consumers will not loose their deposits to external bank debts. The fear of banking institutions has lasted throughout the generations, and with good reason. Thus, this piece of legislation has remained relevant in order to continue to protect consumers all across the country.