During Great Depression, desperation led to drastic actions being taken by the Roosevelt administration. The resulting set of policies changed the government’s role in American life for the rest of the century. The New Deal greatly increased government involvement in the economy through regulatory agencies like the SEC, FDIC and TVA. It also introduced radical relief / welfare programs like Social Security, CCC and FERA, setting an expectation of government aid in times of need.
The New Deal introduced programs like the SSA, CCC and FERA, which set a precedent in which the government would provide free aid during times of need. In the depression, as families struggled to support older generations and invalids, the Social Security Administration promised seniors and disabled citizens
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The Securities & Exchange Commission, for example, was created to regulate wall-street, investing and the stock market in order to prevent another crash. This agency enforced laws that were previously ignored by the investors / companies, a departure from the strictly “laissez-faire” government philosophy of old. Another agency, the FDIC, was created as a response to the many failing banks of the depression. As a secure bank, the FDIC protected its users (and by extension the economy) from ruin by not making risky investments with their money. This commission reflects the government’s increased involvement in government as a result of the New Deal. The New Deal also introduced the Tennessee Valley Authority, which built hydroelectric dams in the Tennessee valley to provide rural inhabitants with cheap power. It was criticized for introducing unfair competition. Nonetheless, it continues to operate today as a government-backed business. By introducing these programs, the New Deal drastically increased government participation in the economy, changing its role in America for decades to