What significant reform did the New Deal introduce to aid the American economy?

The Social Security Act, introduced in 1935 as part of the New Deal, represents a pivotal reform aimed at providing economic security for Americans, particularly the elderly, disabled, and unemployed. This landmark legislation created a social insurance program designed to provide benefits to these vulnerable populations, ensuring they had a safety net in times of need. By establishing a system of old-age pensions and unemployment insurance, the Social Security Act was crucial in helping to stabilize the economy during the Great Depression by boosting consumer spending and alleviating poverty among these groups.

The other options do not align with the major reforms promoted by the New Deal. For example, the removal of all tariffs would have gone against the protective policies that were in place and did not occur as a significant feature of the New Deal. The establishment of agricultural monopolies contradicts the regulatory framework designed to support farmers through programs like the Agricultural Adjustment Act, which sought to stabilize prices and support rural economies. Lastly, full privatization of banks was not part of the New Deal; rather, it focused on reforming and regulating the banking sector to prevent the failures that had contributed to the economic downturn, as seen with the formation of the FDIC to insure deposits. Thus, the Social Security Act stands out as a key