The First New Deal was a group of programs the American government issued to help the economy get out of the Great Depression and back up on its feet. Those programs were issued and passed as soon as President Franklin D. Roosevelt took office. The programs of the First New Deal were put into action during the first two years of FDR’s first presidential term.
First 100 days
During only the first hundred days of his first term, President Franklin Roosevelt and Congress passed several new laws to correct many of the wrongs that the economy suffered from during the depression. Roosevelt did this primarily through issuing executive orders.
Restoring the banking system and the stock market
Since the banking system collapse was one of the major issues during the Great Depression, FDR had to fix that. Once he became President, he closed all banks and called this period the “bank holiday.” During this period, the Emergency Banking Act was passed by Congress. This Act stated that banks were allowed to open again, however, all banking operations and transactions must be supervised by the federal government. The government’s supervision helped in regaining the people’s trust in the banking system.
The Securities Act of 1933 was enacted to prevent another financial meltdown and market crash. This law impacted all public companies that had their stock listed on the stock market. The public companies had to share true and accurate financial information about their company’s value and worth. This information was shared transparently with the public in order to help investors make better informed and wiser decisions for the future.
Lifting alcohol Prohibition
Seeing that people were not really going to stop drinking alcoholic beverages, President Franklin Roosevelt lifted the prohibition. This made making and selling alcohol legal once again. In exchange for higher tax rates and creating many jobs for people, this was a winning combination.
Public Works Administration
The Public Works Administration (PWA) oversaw the building of all publicly shared facilities such as roads, schools, hospitals, and bridges. This created thousands of job opportunities for unemployed people. Another project called the Civilian Conservation Corps (CCC) was responsible for building national parks and planting trees on the streets of the American cities. The CCC also provided jobs for many people.
What about the farmers?
Farmers were one of the factions that suffered the most from both the Great Depression and the drought that hit the Midwest. To help them out, FDR created the Agriculture Adjustment Administration (AAA). The AAA taught farmers better practices when it came to how to deal with their lands and its soil. This administration also represented the farmers in the government.
Housing and real estate
The real estate market had also fallen due to the Great Depression. To get it built back up, two programs were issued to finance home mortgages. The Home Owners’ Loan Corporation (HOLC) and the Federal Housing Administration (FHA) were established. The HOLC was utilized to help people refinance their homes in an attempt to allow homeowners to stay in their homes. The FHA ensured that any house that was built meets certain safety guides.