As the United States fell into the worst depression in history, America witnessed a breakdown of the Democratic and free enterprise. This economic depression, in comparison to other countries, was unique in its severity and consequences. During the beginning, many Americans believed that it was just going to be an adjustment in the business cycle that would soon blow over. But after a few years of this ongoing depression, one out of every four Americans was unemployed. As the depression got worse, hundreds became homeless, families doubled up in apartments, and charities became overwhelmed in their attempts to care for the needy. Americans needed a solution. Franklin Delano Roosevelt, in his economic legislation of the Hundred Days, proposed a series of laws to deal with the crisis through relief, recovery, and reform. For example, it would provide relief for the unemployed, recovery for the nation's economy in order to push the U.S. out of the depression, and lastly reform which would prevent economic catastrophes in the future.
As the newly elected president, Franklin D. Roosevelt did not want to disappoint the nation. The attack on the economic decline led to a series of bills in which Congress seek through the Hundred Days. As a result of the depression, many banks had to shut their doors and were unable to return the deposited money from its customers. The Federal Deposit Insurance Corporation was designed to encourage the public confidence in banks, and to provide insurance coverage for all deposits. The FDIC would provide loans to banks in order to protect depositors making it safe. This act of reform not only gradually gained trust in banks, but until this day, the FDIC insures banks nationwide. When this corporation first started, $2,500 was insured to every depositor. Today the FDIC insures up to $100,000 for every depositor. Because of this new deal program, banks will always have a back up plan.
