Overall was the New Deal a success? During the 1930's, American witnessed a breakdown of the free enterprise system as the United States fell into the worst depression in history. The great industrial plunge continued throughout the 1930's. The pressure of the Great Depression called for governmental reforms and programs to protect and maintain the general welfare of its citizens. The American public desperately needed someone to guide them through. They needed someone who had a plan that would help kick start the economy and bring prosperity back. That person was Franklin D. Roosevelt, and he had a plan. He stated "I pledge you, I pledge myself to a new deal for the American people." The New Deal name was soon applied to the program of reform and recovery. The New Deal is divided into three periods, it describes the program of relieve, recovery, and reform. These new policies aimed to solve the economic problems created by the Great Depression. It attempted to provide recovery and relief through programs of agricultural and business regulation, inflation, price stabilization, and public works (New Deal, 1995). Fortunately, the Democratic Party held the majority in Congress which allowed F.D.R to toss out legislation with almost no resistance. .
In the first two years, The New Deal was concerned mainly with relief by setting up shelters, soup kitchens, etc. However as time progressed, the focus shifted towards recovery. In order to accomplish this immense task, several agencies were created. The .
National Recovery Administration (NRA) was the keystone of the early new deal program launched by Roosevelt. It was created in June 1933 under the terms of the National Industrial Recovery Act. This program attempted to stabilize prices and wages throughout cooperation between the government, business, and labor. The banking industry was also another focus of Roosevelt's administration. Banks had been closing all over the country due to frightened citizens withdrawing all of their money.