Essay on How the Great Depression Changed the Federal Relationship

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The period before the great depression, the 1920s, was known as the Roaring Twenties or the Jazz age. This Era was marked by artistic movement such as the creation of Jazz music and a rich supply of American writing. During this time the federal government had been providing some aid to the states but leaving the bulk of the power to the states, which is known as a dual federalism. It also marked the end of modest social traditions and wave of materialism encouraged by increased customer spending with the open use of a new concept called credit. As the Great Depression rolled in, a cry for the involvement of government in matters of the economy was sent out as the United States reached an all time low. When Wall Street crashed, millions of…show more content…
Along with the New Deal came a lot of controversy about the expansion of the government’s part in American society. Three days after taking office FDR established the Emergency Banking Act, that closed all the banks. Once the banks were reopened they were put under close supervision, also the treasury was authorized to issue more currency. After the Emergency Banking act, during the rest of FDR’s first 100 days in office, he proposed, and Congress enacted, an abundance of legislative acts such as the Civilian Conservation Corps (CCC), the Federal Emergency Relief Act (FERA), the Civic Works Administration (CWA), the Homeowners Loan Act, and the National Industrial Recovery Act (NIRA). One of the most innovative New Deal Program was the Tennessee Valley Authority act (TVA) which created an independent public agency that oversaw the development of projects in the Tennessee River Valley. “While [the New Deal] did not end the Depression, [the] experimental programs helped the American people immeasurably by taking care of their basic needs and giving them the dignity of work and hope” (Maxwell, 1952) Grants-in-aids became a main mechanism of
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