How did the government change the most because of theGreat Depression?

The Great Depression had an impact in many ways and in many areas. One of the most significant changes was how the role of government changed as a result of the Great Depression. During the 1920s, before the Great Depression began, the prevailing attitude about the role of the government was based on a philosophy called laissez-faire. Many people believed the government should have a very limited role in our society. This view was clearly reflected in many of the government policies of the 1920s. There were few rules and regulations during the 1920s.

When the Great Depression occurred, many people changed their belief about the role of the government. The Great Depression was so severe that people began to look to the government for help. They wanted the government to take action to ease the harsh impact of the depression. Many people were facing desperate times.

When Franklin D. Roosevelt took office, he dramatically increased the role of the government, especially in our economy. There were many job creation programs that were launched, including the CWA, PWA, and CCC. Laws were passed to control the actions of our banks and to regulate the stock market. The Glass-Steagall Act created the Federal Deposit Insurance Corporation. Commercial banks were prohibited from investing in the stock market. The Securities Act created the Security and Exchange Commission to regulate the stock market.

Other government programs were established. The Home Owners Loan Corporation helped some homeowners refinance their loans. The Farm Credit Administration helped some farmers refinance their loans. The Agricultural Adjustment Act paid farmers not to grow crops. The Social Security Act was passed to help elderly people get a pension and to help those who were unemployed. Laws were passed to help unions form and to gain rights. The Wagner Act accomplished this for unions.

As a result of the Great Depression, people began to view the government as a safety net in case things got really bad. They began to expect the government to provide assistance during difficult times. This was one of the biggest changes that occurred for the government as a result of the Great Depression.