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By 1933, America had lost billions of dollars due to the bank failures, but had also just gained their only hope to rebuild their economy, Franklin Delano Roosevelt. Roosevelt recognized the country's lack of courage and took no time in addressing the situation. The famous line from his first inaugural address, "The only thing we have to fear is fear itself," encompassed the entirety of the problems faced by America's depositors with the banking systems.
Before Roosevelt's presidency, American banks were failing and closing all around citizens each day. In the time of the stock market crash, deposit insurance did not yet exist and without much cash on hand, banks become highly endanger of runs. A run was the result of the depositors becoming fearful of a bank closure and, in return, immediately withdrawing their savings. For the common American, the increasing problem of collapsing banks became an unnerving new development. Roosevelt addressed those problems of fear or distrust with the Federal Deposit Insurance Cooperation, or the FDIC.
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The FDIC proved to be the most effective agency of the New Deal by taking the problem it was presented with, fixing it legally and efficiently, and pleasing the government and the society as a whole. The people were satisfied with the new trustworthiness of the banks and the government was thrilled at the sight of money flowing back into the bank system. The FDIC also took only one trial to fix the uprising problem; they discovered the solution and kept with it. Meanwhile, other agencies were tried for unconstitutional ways or they were replaced by another agency with a more efficient way to solve the problem. Unlike these many examples, the FDIC had fixed its problem the first time and they did it quickly.
Unlike the success and major effect of the FDIC, the Indian Reorganization Act helped very little to contribute to the New Deal. It finalized past policies by recognizing the key unit of social organization for the Native Americans, their tribe. Though it did provide assistance to the native groups by helping develop their resources, economy, and culture, the Native Americans had needed this far before Black Tuesday and they could have waited. Also some natives took the act offensively and thought of it as another example of outsiders telling them what to do. They did not fully appreciate the help the government was giving them, while the average unemployed praised the government for any help they had received.
The Indian Reorganization Act was passed in 1934. While the 250,000 Native Americans were getting tended to, twenty million average Americans were unemployed. Though the problem of the Native Americans could not be ignored forever, the unemployment rates of the average American people seemed a more pressing issue than the well being of such a minority at such a rough time for the economy.
The FDIC helped the majority of the American citizens regain confidence and control, while the Indian Reorganization Act helped a minority that had, for the time being, learned to live with poverty. Both were the works of a time that brought the nation out of the greatest economic slide it has ever seen. Though it had its critics and doubters, the New Deal proved to be an effective and efficient way to recover from the crash of 1929 and the Great Depression.