Franklin Delano Roosevelt’s solution to the Great Depression was the “New Deal.” Government would protect the economic well-being of its people. In exchange, it would decide what was best. That deal turned America’s burgeoning administrative machinery into a welfare state. Before the New Deal, citizens largely fended for themselves. Under FDR, the federal government did what it had never done before. It stimulated job creation, backstopped bank deposits, established welfare programs such as Social Security, and directed economic activity. The New Deal changed the role of government. To this day, people expect governments to solve social problems and protect them from economic calamity.
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