How did the New Deal change the role of the U.S. government?

Social Studies · Middle School · Tue Nov 03 2020

Answered on

The New Deal, a series of programs and legislation introduced during the presidency of Franklin D. Roosevelt (FDR) in response to the Great Depression, significantly changed the role of the U.S. government in several key ways.

1. Expansion of Government Responsibility: The New Deal expanded the government's role in the economy and society. Previously, the government took a more laissez-faire approach, with limited intervention. The New Deal signaled a shift to a more active role in providing economic security and social welfare.

2. Social Welfare Programs: With the New Deal, the federal government created numerous social welfare programs, such as the Social Security Act, which provided unemployment benefits, disability insurance, and old-age pensions for millions of Americans.

3. Regulatory Oversight: The government took on a significant regulatory role. The Federal Deposit Insurance Corporation (FDIC) was created to insure bank deposits, while the Securities and Exchange Commission (SEC) was established to regulate the stock market and prevent fraud. This was accompanied by other regulations to stabilize the economy and protect consumers' and workers' rights.

4. Creation of Jobs: The government directly created jobs through organizations like the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC), which hired millions to work on public projects. This effort was focused not just on relief but on improving the country's infrastructure.

5. Economic Stabilization and Growth Measures: New Deal programs aimed to stabilize the economy and promote growth through various measures, including managing agricultural production (via the Agricultural Adjustment Act), stabilizing industrial production and prices, and fostering the recovery of the housing market.

6. Institutional Changes: The New Deal brought about institutional changes, with new government agencies such as the Tennessee Valley Authority (TVA), which developed the economy in the Tennessee Valley region by providing electricity and flood control.

Overall, the New Deal laid the foundation for a modern welfare state in the United States, fundamentally changing the relationship between the federal government and its citizens by endorsing the government's role as a guardian of public welfare and economic stability.