When U.S. President Franklin D. Roosevelt took office in 1933, he immediately developed a plan known as the New Deal to combat the Great Depression, an economic crisis that began in the late 1920s. The three main goals of the New Deal were:
- Relief for the millions of victims of the economic crisis
- Recovery from the economic crisis
- Reform of the U.S. economic system
To address the goal of relief, Roosevelt, created the Civilian Conservation Corps (CCC), and the Civil Works Administration (CWA), two agencies that provided people with emergency aid in the form of cash payments and temporary jobs. He also created the Federal Emergency Relief Administration (FERA), which provided state and local governments with grants to help the needy population.
To address the goal of recovery, Roosevelt created the Works Progress Administration (WPA) to reduce unemployment. He also created the Agricultural Adjustment Administration (AAA) to revitalize the agricultural industry, the National Recovery Administration to improve market stability, and the Tennessee Valley Authority (TVA) to manage environmental issues (like flooding) and supply affordable electricity to seven southern U.S. states.
To address the goal of reform, Roosevelt used legislation to regulate the banking industry and stock exchanges. Some examples include the Banking Act of 1933, Social Security Act of 1935, which created pensions for older Americans and benefits for the unemployed.