How The Great Depression Changed The Federal Relationship

759 words - 4 pages

The period before the great depression, the 1920s, was known as the Roaring Twenties or the Jazz age. This Era was marked by artistic movement such as the creation of Jazz music and a rich supply of American writing. During this time the federal government had been providing some aid to the states but leaving the bulk of the power to the states, which is known as a dual federalism. It also marked the end of modest social traditions and wave of materialism encouraged by increased customer spending with the open use of a new concept called credit.
As the Great Depression rolled in, a cry for the involvement of government in matters of the economy was sent out as the United States reached an all time low. When Wall Street crashed, millions of dollars plummeted and the country spiraled into the most severe economic downturn the United States has seen yet.
The little money the cities did have were quickly spent on the relief for the poor. The Americans who didn’t react to the great depression by blaming themselves responded with protests which were first uncoordinated and spontaneous, but then grow in size and support. Americans joined together to form unemployed councils, sponsoring marches for public assistance, and protesting the eviction of unemployed families from their homes. President Hoover’s response to the great depression, in the eyes of many Americans, was inadequate and uncaring. In the 1930’s, the administration remedies, like the Hawley-Smoot Tariff, made the economic situation worse. The SA tax increase that President Hoover also pushed through Congress further reduced Americans’ purchasing power. By 1932, Hoover had to admit the voluntary action had failed to stem the depression.
When Franklin D. Roosevelt was elected into office in 1932, he proposed The New Deal, which was a wide array of bold policies and programs. The New Deal promoted the banking system, stabilized the stock market, restored faith in the community by putting many of the unemployed back to work, assisted those incapable of working, and instituted an insurance system leading the country into an era were the national, state, and local government work together.”Roosevelt himself maintained that the New Deal would be an experiment that might indeed meet with failure, but that it was better for the country if the...

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