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How did the Great Depression change the role of the federal government?
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The role of the federal government changed during the Great Depression in that the federal government began to regulate the economy and assist struggling citizens. Prior to this, people in need would have looked to local governments or charities and churches, but through the creation of various programs and new laws, the federal government began to engage with citizens' needs more directly.
There are many historians who view the New Deal policies of President Franklin D. Roosevelt as the beginning of the social welfare system of the Federal Government. During the Great Depression, there were many men who had no jobs; consequently, their families suffered deprivation and hunger. The New Deal programs were a series of domestic programs such as the Federal Emergency Relief Administration, which provided $500 million for state and city relief operations, and the Civil Works Administration, which provided localities funds to operate "make-work" jobs, jobs created to give men something to do so they could receive pay.
In the Second New Deal of 1935-1938, the Wagner Act, which promoted labor unions, was passed. The Works Progress Administration (WPA) was also begun; this became the largest employer in the nation. To protect citizens from losing their savings because of a "run," or other circumstances, the Federal Deposit Insurance Corporations...
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(FDIC) was formed. In addition, the Federal Housing (FHA) Administration was begun, and the Tennessee Valley Authority (TVA), which employed thousands and provided water to many, was initiated. Also, the Social Security System was begun. Another institution was the Securities and Exchange Commission (SEC), whose duty is to provide protection to investors; maintain orderly, fair, and efficient markets; and enable capital formation. With the exception of the WPA, these new elements of the Roosevelt government yet operate today. So, the federal government was greatly expanded during the Depression, making great efforts to help the local governments and its citizenry. Ironically, Roosevelt was criticized by conservatives and liberals alike. On the conservative side, people felt that the government was interfering in what should belaissez-faire competition and not a government-controlled economy; on the other side, people felt the government was not doing enough to help people.
References
During the Great Depression, the role of the federal government changed tremendously. Before the Depression hit, the federal government did little or nothing to help people financially. This was not seen as something the government ought to do. With the Depression came a change in this perception. President Roosevelt's New Deal made government responsible for helping people in many ways. These ways ranged from guaranteeing that they would not lose money they had deposited in banks (FDIC) to ensuring that they would have money to live on after they retired (Social Security). In general, the New Deal brought on a new role for government, one in which the government did a great deal more to help individuals financially.
How has the federal government's role in social policy changed since the Great Depression?
The role of the federal government has changed significantly since the Great Depression began. Prior to the Great Depression, the prevailing attitude was one of laissez-faire. The belief was that the government should have a very limited role in helping people who needed help.
Once the Great Depression began, people looked to the federal government for help when times became rough. The Great Depression was so severe and negatively impacted so many Americans, that people shifted their views about the role of the federal government. Many Americans faced desperate conditions as many people lost their jobs and/or their savings. They turned to the government for relief. The federal government developed relief programs in the form of job programs, such as the Civilian Conservation Corps and Civil Works Administration. They also looked to the government to reform banking and investment practices so that it would be more difficult for another financial collapse to occur. The Glass-Steagall Act and the Securities Act were passed. The government also developed programs to help people as they became older. The establishment of the Social Security Act provided help for people when they retired.
In the 1960s, the Great Society program of President Johnson was designed to help people who needed help. Medicare and Medicaid are programs providing health insurance to the elderly and to the poor. The Head Start program helped disadvantaged kids get a chance to start school early.
Today, people rely on these social programs. Any discussion about changing Medicare, Medicaid, and/or Social Security is often met with stiff opposition. The belief that our government should act as a safety net for those in need remains strong today.