As a result of the Great Depression, the congress enacted legislation that laid the foundation for social services and welfare programs.The New Deal was enacted in 1936 as a series of federal programs that were aimed at stimulating, regulating, and reforming the economy.
The New Deal sought to address relief from unemployment, homelessness, regulation of the banks and stock market, debt relief, and various other ‘public work projects’ such as the Grand Coulee Dam. The New Deal allowed for interference from the federal government into private affairs in an attempt to resuscitate the economy. Prior to The New Deal, it was largely the responsibility of private charities, organizations, and corporations who facilitated social welfare programs.
Programs created by The New Deal included;
The Federal Deposit Insurance Corporation (FDIC)
Securities Exchange Commission (SEC)
The Social Security Act of 1935 (SSA)
Federal Emergency Relief Administration (FEMA)
In summary, the federal government became more involved in the affairs of the respective states and private citizens due to the economic crisis caused by the collapse of the stock market exchange.
The power of the US federal government increased in the 1930s in response to the Great Depression and the growing concern over the possibility of conflict throughout Europe and Asia. When the Great Depression occurred, many Americans had their lives turned upside down. Many people had lost most or all of their savings, and unemployment rates soared. The laissez-faire policies of the 1920s proved to be ineffective in dealing with the effects of the Great Depression. Many Americans began to believe the government should function as a safety net during dire times. As a result, in 1932, the American people elected Franklin Roosevelt as president and many Democrats to Congress. These people pledged to do whatever was necessary to deal with the harsh effects of the Great Depression and to work to end it.
Many laws were passed to regulate and reform the economy. These laws were also designed to stimulate its recovery. American banks and the stock market faced new government regulations with the passage of the Emergency Banking Relief Act, the Glass-Steagall Act, and the Securities Act. The government provided funding for the creation of new jobs with the creation of the Civil Works Administration, the Public Works Administration, and the Civilian Conservation Corps. The passage of the Social Security Act provided for a pension for some retirees and assistance for those who were unemployed. The Wagner Act gave labor unions the legal right to exist. These actions expanded the power and the role of the federal government.
As the threat of war grew in Europe and in Asia, Congress passed laws that significantly restricted American trade with nations at war. In 1935, the Neutrality Act prevented Americans from trading weapons with warring nations, while the Neutrality Act of 1937 required a policy of cash and carry when trading nonmilitary supplies to any warring countries. These laws were designed to help keep the United States from becoming entangled in any conflicts that might develop.
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