In many cases, the government provided loans to the banks to relieve the cause of early foreclosure on home, farm, railroad, insurance company, and other business loans. In addition to providing direct loans to the banks, FDR initiated banking laws to insure individual and commercial bank deposits up to $5,000 and to prevent early foreclosure in the future. These actions led to increased consumer confidence in the banking industry and provided the banks with capital to lend to facilitate investment. FDR implemented the Securities Act and the Securities Exchange Act to regulate the issuance and management of publicly traded stocks. Amongst the New Deal agencies was the National Industry Recovery Administration (NIRA). NIRA enforced fair competition amongst industry, established minimum wage, maximum workday and workweek hours, and eliminated child labor. As a result of the increase in minimum wage and other wages, workers had more money available to spend, which helped to improve the economy. In addition to the creation of regulatory agencies and legislation, the New Deal established public works programs to create jobs for the unemployed in building the nation's infrastructure. Finally, the New Deal established programs offering direct relief to aid the unemployed and unemployable, and to provide for old age and disability.
With the initiation of New Deal programs and legislation, FDR seeded the notion that the federal government bears the responsibility for the welfare of its citizens. Balancing the welfare state with capitalism, under the New Deal government regulation of business and industry, spending to aid the poor and the promotion of social justice all increased. .
While FDR struggled to define a balance of capitalism and socialism that was acceptable to the American people, Huey P. Long in 1934 denounced any adherence to capitalist ideals, stating that to do so is the equivalent of fanaticism.