The New Deal changed the role of the federal government. Those changes still exist today. In the 1920s, laissez-faire was the policy of the federal government in regards to the economy. People believed that the government should have a very limited role in our economy. They believed the economy goes through cycles, and things eventually would work themselves out on their own.
With the arrival of the Great Depression, the thinking of the American people began to change. People began to believe the government should act as a safety net during tough times. Therefore, the people wanted the government to be involved in creating jobs. They wanted the government to establish rules and regulations to help prevent a depression like this from occurring again. They supported the regulations placed on banks and stock market. They supported the various job creation programs. This feeling still exists today. When there is a major disaster, people look to the federal government for help. This is seen repeatedly after tornados, earthquakes, or hurricanes. It was seen during the severe recession in 2008. People expect the government to be there for us when a great calamity hits our country.
The federal government also took on the role of a broker state during the Great Depression. The government began to act as a facilitator when there were disputes between various groups of people. The Wagner Act was designed to help and to protect workers. It created the National Labor Relations Board to help resolve issues between workers and companies.
The Great Depression changed the role of the federal government. The federal government has become more active in our economy and in people’s lives. Those changes still exist today.
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