How did the us government role in the economy change as a result of the Great Depression?

Answer 1

Prior to the Great Depression, the U.S. government took a largely "hands off" approach to the U.S. economy. But the economic crisis that caused the Great Depression prompted the federal government under President Roosevelt to expand its economic role in supporting stability and growth through the creation of federal programs. For example, the government created programs such as the Federal Deposit Insurance Corporation and the Social Security Administration.
The major effect of the Great Depression and the New Deal on America was expanded government intervention into new areas of social and economic affairs and the creation of more social assistance agencies at the national level. The relationship between the national government and the people changed drastically. The government took on a greater role in the everyday social and economic lives of the people. The New Deal programs of FDR also created a liberal political alliance made up of labor unions, blacks and other ethnic and religious minorities, intellectuals, the poor, and some farmers. These groups became the backbone of the Democratic Party for decades following the Depression. As the federal government grew with new agencies and reform attempts, the cost of government increased. The growth of the government continued following the New Deal.