Real Government

The federal government did not play a major role in the lives of American citizens before the Great Depression. The government was the only hope for some Americans during the Great Depression. The government got highly involved with citizens due to President Franklin D. Roosevelt's New Deal Programs. The New Deal radically changed the portrayal of the federal government, and changed what people expect from the government. Three things that the government is now involved with, that they weren't involved with before the New Deal are: providing aid to elderly, insuring bank deposits, and regulating the stock market.

The federal government was not expected to provide direct financial help to citizens before the Great Depression. Many Americans lost their jobs and had no other ways to support themselves. The government established a program called the Social Security Act. The Social Security Act provided retirement insurance and modest welfare payments to those with disabilities and young dependent children. This is a program that still exists today. People today expect the government to help them when they are in times of need. The government taxes citizens so that they can fund these programs.

When banks closed down, many people lost their money. Some people lost everything they had. The Glass-Seagall Act created the Federal Deposit Insurance Corporation. This insurance corporation provided government insurance for bank deposits up to a certain amount. This corporation still exists, and it protects up to 100,000. This insurance corporation changed the government by exceedingly elevating American confidence in the banking system.

Many Americans invested all their money in the stock, but many put their money into the wrong stocks. People were putting more money into stocks than they were worth. After the stock market crashed, the Securities and Exchange Commission was created. The reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses. This commission still exists. The Securities and Exchange Commission changed the government by ensuring Americans that they are not being ripped off or tricked into buying stock.

President Roosevelt made a big change in the U.S. His programs helped many aspects of our government. He changed how involved the federal government was in people's lives, and how safe everyone was. The federal government improved conditions for many, provided economic help to the elderly, insured bank deposits, and regulated the stock market.