Federal Government Before And After New Deal Essay

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Federal Government before and after New Deal

The new deal was the very important strategy of the federal government to get rid of the great depression of 1929 in the United States. Before Franklin D Roosevelt took over, Herbert Hoover was the President of United States. At that time the country was running in a laissez faire economy which means federal government had no power over the business affair in the economy. The business were free to run in their own way, government did not have any rules and regulations for the businesses. After the stock market crashed in October 1929 there was a huge crisis in the nation. By 1933, Unemployment rate reached 25%, more than 5000 banks were shut down. Economic problem such as economic stagnation and
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Herbert hoover did not realize that federal government could do something in such cases, he relied on the private businesses and the local government, which was not the correct solution at that time. Herbert Hoover tried many other ways but he failed; after then Franklin D Roosevelt became a new President of United States. Using the power of federal system he tried something that that no one had ever done before. He knew that free enterprise system was not working well then. He came up with the idea called a new deal which redefined the role of federal government. This plan involved direct government involvement into the economics areas of the nation. The program ran from 1933-1935 and was broke down into three goals relief, recovery and reform. In his first 100 days of his presidency, he signed tons of legislation, he explained many of his programs and …show more content…
Before the new deal the government was not very much involved in the economic, and social sector of the nation; it was more like a capitalism at that time. However, after the new deal was passed the government had a bigger role in the nation than it used to be. The relation between federal government and people changed significantly. Before the presidency of Franklin D Roosevelt, such problems was not seen as something that government need to do, so the people did not have much expectation from the government, but after the new deal was passed various agency were established which directly work for the benefit of citizen and the nation. After then it was more like a socialism. The new deal made a very great impact in long run for the United States. Today the United States is running through the concept of new deal because Federal Government has a power over the businesses bank and the stock market. I believe, the federal government should not directly involved in the economic sectors like in the time period of Great depression, but there must be a rules that should be followed by every businesses. In conclusion, we can say that the role of Federal government changed drastically before the start of the depression and after

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