President Roosevelt's New Deal had a huge impact on the role of the federal government in our country. It created programs that we now take for granted as part of what the government should do for us. Let us look at three examples:
- The FDIC. Because of the New Deal, we now take for granted the idea that the government will ensure our bank deposits and pay us back if our bank fails. This helped keep the recent economic downturn from being much worse as bank failures did not lead to the impoverishment of their depositors.
- Agricultural subsidies. These remain a pillar of the agricultural economy in the US. Even Republican governments that are dedicated to free enterprise cannot get rid of them.
- Social Security. This is perhaps the biggest legacy of the New Deal. It has made the federal government the main source of retirement income for many Americans.