The Role of Government in the Economy

The 1930s were one of the most challenging times for America. The economic crisis and recession resulted in the emergence of 15 million unemployed workers (Patel 2016). The scope of the problem is proven by the fact that this period was called the Great Depression. For the first time in its history, the USA had such significant issues in the industry, economy, and banking sector. The need for governmental support became evident, while President Hoover was not able to promote the positive change (Patel 2016). The new President, Franklin Roosevelt, insisted on providing additional powers to the government to improve the lives of common Americans (Patel 2016). The creation of a New Deal indicated a reconsideration of the role of government in the economy and its becoming a leading actor supporting Americans in their attempts to recover after stress.

The New Deal was a campaign launched by President Roosevelt with the primary goal of affecting the most important aspects of the economy and promote positive change. It included a series of programs and projects that guaranteed the relief for people living in a state and provided them with an opportunity to earn money needed for their living. At the same time, the New Deal meant that the role of the government changed, as from the passive observer, it transformed into an active player which acquired multiple authorities and tools to control the economy and guarantee that the crisis would not strike again, and the living conditions will gradually improve (Rauchway 2008). The program focused on the most vulnerable groups, such as farmers, the unemployed, the youth, and the elderly, who suffered from the crisis most of all.

The most important federal programs launched by the government and agencies responsible for the improvement were the Civilian Conservation Corps (CCC), the Civil Works Administration (CWA), the Farm Security Administration (FSA), the Social Security Administration (SSA), and the National Industrial Recovery Act of 1933 (NIRA) (Rauchway 2008). During the First 100 Days, Congress ended the prohibition, and it had a positive impact on the economy (Patel 2016). Additionally, the Tennessee Valley Authority Act promoted by the President’s administration created the TVA and contributed to establishing multiple working places in areas with various difficulties (Patel 2016). At the same time, workers acquired an opportunity to unionize and bargain collectively to attain higher wages and enhanced working conditions, which was critical for the improved quality of their lives (Patel, 2016). The First 100 Days were characterized by the significant changes in the lives of common Americans and the economy of the USA, which created the basis for the success of other programs.

The CCC was a public word relief program initially headed by Robert Fechner, who was the first director. It was launched in 1933 with the major aim to offer jobs to young men and help families with difficulties during the Great Depression. It contributed to reducing the number of unemployed and higher income for many households (Patel 2016). CWA another job creation program in terms of the New Deal, which introduced new manual-labor and temporary jobs for millions of people in the USA. Harry Hopkins became the head of this agency, which acted to improve the economic situation in the state (Rauchway 2008). The FA was another program and agency formed in 1937 to manage the high rates of poverty in rural areas. The farmers were organized to work together on farms owned by the government with the use of modern equipment and with the guidance of experts (Rauchway 2008). It helped poor farmers to find jobs and survive. Finally, the NIRA was a critical labor and consumer law enacted in 1933 to provide the President with authority to monitor industry and ensure fair wages, prices, and promote the economic recovery (Patel 2016). Additionally, it presupposed a national program for public works Public Works Administration (PWA). It was a significant step towards the improvement of the economic situation in the USA (Rauchway 2008).

The given programs had a serious impact on the USA and created the basis for the gradual improvement of the situation. The economy of the state was revitalized because of the regulations from the government and wise taxation and wages policies (Rauchway 2008). Moreover, the establishment of federally-funded infrastructure and improvement projects in all regions preconditioned the creation of new jobs for workers and provided businessmen with an opportunity to earn (Patel 2016). Finally, multiple social projects resulted in social guarantees to people suffering from the Great Depression and helped them to survive and find ways to earn money.

Altogether, the positive impact of the New Deal and its projects cannot be overestimated. It indicated the changing role of the government and its growing importance for regulating the economy of the state. Millions of jobs were created, and people acquired an opportunity to earn money needed for their survival. Even today, the social incentives of the campaign can be felt, as there are unions protecting the rights of workers and social guarantees that help individuals to feel some relief and rely on the government in difficult times.

Reference List

Patel, Kiran. 2016. The New Deal: A Global History. Princeton University Press.

Rauchway, Eric. 2008. The Great Depression and the New Deal: A Very Short Introduction. Oxford University Press.

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