Introduction
The development of the policymaking role of the U.S. government to maintain an adequate level of economic stability from the Great New Deal until the Great Society established a significant period in the country’s history where federal intervention reached maximum. In the meantime, the Whole era, which started in the 1930s and ended in the second half of the 1960s, saw a rise in legislative activities to deal with economic stagnation, the issue of poverty, and meeting social welfare needs. This piece of writing demonstrates this by focusing on the alteration in the structure of the American economy as a result of these policies and emphasizing the government’s new role in economic issues at those most significant times.
The New Deal Era
The New Deal included President Franklin D. Roosevelt, who initiated it as a reaction to the Great Depression and stood for a big turn in government intervention in the economy. Previously, the federal government had directed the hands-off economic policies scarce. On the other hand, the destruction of the great depression caused a new era of “active governmental role in solving societal problems” (Bernstein, 2022). The New Deal is the name given to the program of specific agencies, legislative acts, and policies enacted to strengthen and boost the economy, having the Civilian Conservation Corps and the Agricultural Adjustment Act as the main components of immediate employment, agriculture stabilization, and confidence growth in the national economy recovery. This appears in programs, for example, in the Social Security Act, which set up a precedent of the assignment of federal responsibility in social welfare, signifying a shift in the relationship between the state and its citizens as foundational.
The second main turning point during the period of the 1930s and 1940s was affected by World War II and economic mobilization.
As a result of the global turmoil caused by WW II, several governments had to undertake large-scale economic input, which only boosted the previous trend. The federal government assumed the role of a maneuvering board, which directed a nation-scale redistribution of assets in favor of the effort to win the war. It consequently oversaw the production and distribution of necessary goods and services for the military (Bernstein, 2022). The War Production Board limited materials in circulation, the Price Administration remained in charge of inflation around price caps, and war bonds financed the venture. The recession era demonstrated the government’s administrative capability of directing the economy, creating both a path to future post-war policies and the expectations of governmental supervision.
By the end of the World War, the United States had transformed into a global economic leader, using the regulatory mechanisms to achieve this.
In the post-war era, the USA went through a period of economic recovery and prosperity largely made possible by government policies designed to fuel further industrialization and development (Galvin,2020). For example, the GI Bill supplied education benefits and housing loans for veterans so they could further their studies and buy a home, which, in turn, boosted consumption at the local level. In addition, the government’s ability to control economic activity was legitimized by creating laws to ensure a safe financial system, including the continued existence of the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC).
The Great Society and Social Growth in Its Extension
While the intrusion of the government into many areas of life progressed dramatically during the tenure of President Lyndon B. Johnson, in the 1960s, with his Great Society program, it achieved a new height. Up until then, poverty and racial discrimination were a well-known issue in the country, so these initiatives were created to eradicate them from society. Programs like Medicare and Medicaid help pay for health care for seniors and lower-income groups (Galvin,2020). One of the economic projects was the Economic Opportunity Act, which launched projects focused on education, job training, and community development. As a result, this led to programs that support education, job training, and community development. It was a time of commitment in the marketplace and announcement of economic and social changes that had never been seen before through wide government interventions.
Conclusion
Regardless, from the New Deal to the Great Society, the American government transitioned from a minimalist to an active one in managing economic policy and social welfare. The eruption was mainly caused by the grave consequences of the Great Depression, the awesome military force of World War II, and the imperfect social plan of the sixties. Every turn focused on the near future issues, such as economic or interpersonal problems, and established new norms for the level of government interventions in American daily life. These policies set the structural framework for their national economy and show the importance of the government’s decision-making process for economic prosperity. Throughout the history of time, whenever the Twoconstruct States is faced with issues in economics, the lessons are the same, as far as the balance between operations of the free markets and regulation is concerned.
References
Bernstein, I. (2022). The New Deal collective bargaining policy. Univ of California Press.
Galvin, R., & Healy, N. (2020). The Green New Deal in the United States: What it is and how to pay for it. Energy Research & Social Science, p. 67, 101529.
write