Module 5: Reform

Reforms

The New Deal's reform agenda aimed to address the systemic issues that contributed to the Great Depression and to establish safeguards to prevent future economic crises. A cornerstone of this agenda was the National Labor Relations Act (NLRA), enacted in 1935. This legislation empowered workers to organize and engage in collective bargaining, significantly enhancing labor rights in the United States. By protecting the rights of workers to form unions and negotiate better wages and working conditions, the NLRA not only aimed to strengthen the labor movement but also sought to create a more balanced power dynamic between employers and employees, fostering fairer labor practices.

Another key component of the New Deal's reform efforts was the Banking Act of 1935, which aimed to stabilize and reform the banking system. This legislation established the Federal Reserve's authority over the nation's monetary policy and introduced measures to enhance the overall stability of banks. Additionally, the Banking Act reinforced the Federal Deposit Insurance Corporation (FDIC), which had been created earlier in 1933. The FDIC provided insurance for depositors, guaranteeing their savings up to a certain amount and restoring public confidence in the banking system. By addressing the vulnerabilities that had led to widespread bank failures, the New Deal sought to create a more secure financial environment for consumers and businesses alike.

The Securities Exchange Act of 1934 further exemplified the New Deal's commitment to financial reform by establishing regulations to govern the stock market and protect investors. This act aimed to prevent the kinds of speculative practices that had contributed to the stock market crash of 1929. By creating the Securities and Exchange Commission (SEC), the New Deal instituted oversight to ensure transparency and fairness in financial markets. Together, these reform measures represented a comprehensive approach to reshaping American economic institutions, focusing on preventing abuses and promoting stability. The New Deal's reform agenda not only transformed the regulatory landscape but also established a foundation for modern economic governance, reinforcing the federal government's role in safeguarding the interests of its citizens.