Between 1898 and 1945, the United States saw a great shift in the role of the government and although the end result may have seemed unprecedented in the late nineteenth century, the evolution of the state that occurred during the first half of the 1900s was one of natural growth caused by the unique events that took place during that era.
One of the greatest shifts that occurred during this time in history was that of democratic citizenship. In his speech, President Roosevelt discusses the “faith” and “devotion” the people had toward the institution of democracy and in particular, their government – but what produced such loyalty (Roosevelt, 6)? It was not a sudden change, but rather a series of events and reactions that brought it about. The early twentieth century saw mass settlements of …show more content…
In particular, he implies a tax hike: “A part of the sacrifice means the payment of more money in taxes,” (Roosevelt, 7). Prior to the twentieth century, and with the exception of the Civil War, the government was funded by tariffs. In 1916, however, the 16th Amendment officially established an income tax. Nevertheless, this does not fully portray the sentiment Americans had toward the government and its involvement in the economy at this time. Working-class Americans, specifically those of ethnic background, had great distrust for the American banking system (Cohen, 76). Along with consuming locally, people banked locally. The Great Depression once again played a crucial role in changing this trend. As the economy spiraled, people frantically went on bank runs to withdraw their deposits out of fear that they was not safe there. As a result, upwards of 4000 banks failed in 1933 (Burns, 11). President Roosevelt, thus, took extreme measures once in office to stabilize the banks and in turn the economy. During his first one hundred days in office – often remarked by historians and politicians as the most active of any president – Roosevelt successfully calmed the frenzy surrounding American banks. He called for a national bank holiday to halt all withdraws. Furthermore, he established the Federal Deposit Insurance Corporation to insure deposits once the banks reopened. Most