New Deal

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A national bank holiday: The day after his inauguration, FDR declared a

"bank holiday," closing all banks in the country to prevent a collapse of the
banking system. With the banks closed, Roosevelt took measures to restore
the public's confidence in the financial systems; when the banks reopened a
week later, the panic was over
Ending the gold standard: To avoid deflation, FDR quickly suspended the
gold standard. This meant that U.S. dollars no longer had to be backed up
by gold reserves, which also meant that the government could printand
spendmore money to "prime the pump" of the economy.
Glass-Steagall Act: The Glass-Steagall Act imposed regulations on the
banking industry that guided it for over fifty years, until it was repealed in
1999. The law separated commercial from investment banking, forced
banks to get out of the business of financial investment, banned the use of
bank deposits in speculation. It also created the FDIC[link to "FDIC"
passage below]. The effect of the law was to give greater stability to the
banking system.
FDIC: The Federal Deposit Insurance Commission backed all bank deposits
up to $2500, meaning that most bank customers no longer had to worry that
a bank failure would wipe out their life savings. The agency continues to
insure American deposits today.
Federal Securities Act: This act regulated the stock markets and preceded
the creation of the Securities and Exchange Commission in 1934, which
continues to regulate U.S. stock markets to this day.
Agricultural Adjustment Act: The AAA provided relief to farmers by
paying them to reduce production; this also helped to reduce crop surpluses
and increase prices for crops
Civilian Conservation Corps: To reduce unemployment, put 250,000
young men to work in rural conservation projects, mostly in national parks
and forests
National Industrial Recovery Act: One of FDR's more controversial
measures, it created new agencies and regulations that tightened the
relationship between government and business. It was declared
unconstitutional by the Supreme Court in 1935.
Public Works Administration: Funded the construction of public works
projects across the country, including schools, hospitals, airports, dams, and
ports, as well as ships for the Navy and airports for the Army Air Corps.
Federal Emergency Relief Act: Provided direct relief, training and work for
unemployed Americans. It was abolished in 1935 and its programs folded
into other agencies.

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