While jobs and prevent total financial bankruptcy, providing
While laissez-faire was effective under
previous government rule, the Great Depression shifted the mindset of many
Americans that the government should have a more involved position in their
lives, leading to the conception of the New Deal. Under the Franklin D.
Roosevelt’s administration, Congress and FDR passed the New Deal to combat the
effects of the Great Depression and redefined the federal government to have
larger oversight and role in the daily lives of residents in the United States.
Resulting from the creation of the New
Deal, the federal government gained more power by proactively partaking in the
activities of the United States economy. Under Franklin Roosevelt’s presidency,
the government began to control the previously unregulated areas of the stock
market and commerce, specifically banking, agriculture, and housing. This was
achieved through the creation of the Securities and Exchange Commission to
ensure proper practice. In 1933, the government approved the creation of the
Federal Deposit Insurance Corporation, also known as the FDIC, which ensured
personal savings in banks up to 100,000 dollars in 1933. With this change, the
government was able to create jobs and prevent total financial bankruptcy,
providing security and ease of nervousness for the people.
Besides giving the government
regulation powers, the New Deal created welfare programs to aid the majority of
Americans. One of the most significant program that still exists today is the
Social Security system. The federal Social Security system would utilize
tax-payer money to distribute pensions to retired Americans. While this program
is beneficial to citizens, funding will eventually be depleted. In addition to
protecting the elderly, the government was being proactive in helping farmers
among the competition from corporations. The farmers would receive federal
funding as long as their farms had a certain area for crops to sell domestically
instead of export. In order to fund these programs, the federal government borrowed
money, going into debt, and even to modern times, the government runs a
Overall, the New Deal program
expanded and gave the government more authority to regulate the stock market
and industries, create jobs, assist Americans, and protect United State economy.