The New Deal was an attempt by Franklin Delano Roosevelt to use the crisis surrounding the recession following the Stock Market Crash of 1929 as an excuse to intervene in the economy.

Interventions of the New Deal included: the National Industrial Recovery Act (1933) which controlled industrial prices and wages; the Agricultural Adjustment Act (1933) to control agricultural prices and output (paying farmers not to produce); the National Labor Relations Act (1935) to control wage prices by forcing employers to negotiate with government empowered unions; the Glass-Steagall Act which created the FDIC, federally insuring deposits; and many others.

FDR also made thousands of executive orders which created further uncertainty and disruption of the economy. Uncertainty led to people to hold onto their money (“hoarding”) as opposed to investing it as they were waiting to see what the government would do next.

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