The New Deal significantly changed the relationship between the people and the federal government. Before the New Deal, the national government almost entirely stayed out of social welfare, leaving that to the states. The government primarily saw its role as legislating and enforcing the laws of the land and providing for the armed defense of the country.
The New Deal was a response to the crisis of the Great Depression. An unregulated capitalist system without an adequate safety net had caused a complete economic collapse. Unemployment skyrocketed and people suddenly found their savings wiped out when their banks failed. People who worked hard all their lives discovered they were destitute. A great number of people realized that they could become extremely poor through no fault of their own and not be able to find a job no matter how hard they tried. More people than ever embraced communism, feeling the capitalist system had failed them.
With the New Deal, the federal government for the first time embraced the idea that it had a responsibility to safeguard the economic welfare of its people and promote their prosperity. Under the New Deal, programs we take for granted, such as Social Security, were first implemented. The federal government also took an active roll in reducing unemployment and using federal funds to implement infrastructure improvements to make life better for all people. It guaranteed bank deposits, regulated Wall Street, made it easier to unionize, and backed low cost home mortgages. Because of the New Deal, life became much more prosperous and secure for the average person, especially after the end of World War II.
Friday, January 6, 2017
How did FDR's new deal change the relationship between the government and the people?
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