Thursday, June 27, 2013

How did the New Deal expand the federal government's authority and responsibilities?

The New Deal expanded the authority and responsibility of
the federal government in a number of ways.  In general, it gave the federal government
the power to intervene in the economy in practically any way it wanted and it gave the
government the responsibility for ensuring the basic welfare of the
people.


Through the New Deal, the federal government got
the authority to intervene in the economy in many ways.  For example, the government
could tell farmers how much of their crops to produce or not to produce.  It could force
banks to pay into a deposit insurance fund.  There are many other examples of what it
could to to intervene in the economy.


At the same time, the
government took responsibility for the welfare of the people.  It did this most clearly
through the creation of Social Security.  This and other programs established the idea
(which has only grown since then) that the government is responsible for ensuring that
people have a certain basic standard of living.

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