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Prior to FDR's New Deal, the US federal government had very little direct involvement in running the US economy or in protecting anyone from economic difficulties. Following the Great Depression it became apparent that it was not good enough to just let the economy run itself (which it was supposed to do according to the theory of Adam Smith, who described an "invisible hand" that regulates economies automatically). Following the New Deal the American public has increasingly counted on the federal government to ensure that the economy functions well and that individuals are financially secure.

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