Both the Federal Deposit Insuranceto Corporation (FDIC) and the Securities and Exchange Commision (SEC) were established in the First New Deal help protect the nation’s economy. Fill in the chart below to identify the responsibilities of each agency.
What was unique about President Roosevelt’s plan to end the Depression?
FDIC:
- The FDIC was established to insure deposits in banks in order to restore confidence in the banking system.
- It also regulated and supervised banks to prevent future bank failures and ensure the stability of the financial system.
SEC:
- The SEC was established to regulate the securities industry, including stock exchanges, brokers, and investment advisors.
- It was tasked with enforcing federal securities laws to protect investors and maintain fair and efficient markets.
President Roosevelt's plan to end the Depression was unique in that it involved a large expansion of the federal government's role in the economy through various relief, recovery, and reform programs. This approach, known as the New Deal, included measures such as providing direct relief to the unemployed, implementing public works programs to create jobs, and regulating the financial industry to prevent another economic collapse. The New Deal was a departure from traditional laissez-faire economic policies and marked a significant shift towards government intervention in the economy to address social and economic challenges.