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Wednesday, February 17, 2016

Government Intervention in the United States and Why People Need It

Throughout American history there has always been a tremendous debate about the influences of government and how large it should be. It is one of the major differences between political parties and stirs controversy with every election. This is an important subject because it is not only an important topic of debate within society, but it also has tremendous influence over the function and structure of the country.
            Since the Great Depression, much big government spending/programs has revolved around New Deal Policy set by former President Roosevelt. This was a pinnacle move in the United States’ history and has made a large impact of the direction of political parties. Economists still debate to this day whether the New Deal or World War 2 was the reason for the economy to bounce back after it had such a disastrous collapse. Several people even say it was both, but the distinction of whether or not people are for or against the New Deal and bigger government has established modern day Democrats and Republicans.
            The notion of increasing government to help resolve issues within the United States continues throughout American history. The administrations that have continued such notions include former President Truman (the Fair Society), President Johnson (the Great Society), and President Obama. These four presidents all believed that increasing government would fix the problems at hand and by using government effectively create equality, structure, and prosperity.
            This subject is excruciatingly important to those who research public administration. This is a subject brought up for every election and asks, “How much do people approve of bigger government spending?” It also asks things as simple as “do you approve of public education?” These issues are important for every election and may even sway how people vote in an election depending on wording and approach. During former President Roosevelt’s campaigning, he stated what many presidential candidates stated during the time and believed that there should be little to no government. This of course ended up being the exact opposite and the government gained a role bigger than it ever had before.
            During former President Roosevelt’s administration, the role of government took on a whole new responsibility. The New Deal began in 1933 and was driven by desperation to fix the Great Depression. The banks had collapsed due to a lack of investing and rapid withdrawals of account holders forcing banks to declare bankruptcy.
            Just within a year of Franklin Roosevelt’s inauguration, a powerful conservative opposition had launched an assault on the new administration’s programs (Holt 27). The conservatives consistently pushed for the New Deal to be revoked because of their strong opposition of such policy. Conservatives believed that government could never be a substitute for the hard work and initiative of free men (Holt 27). Even Republican politicians of the time that had endorsed many of the Roosevelt administration’s programs commonly stated that the New Deal was going to destroy individualism and freedom. (Holt 28). There was plenty of open opposition to the New Deal and Roosevelt along with his administration would continuously describe these policies as “experimental” since old ideologies had continuously failed the United States and something new was needed if the United States was going to dig itself out of the Great Depression (Holt 29).
            The Great Depression had created desperate times which resulted in desperate measures creating policy that would temporarily be used to help the economy bounce back. One of his legislative proposals was an economy bill that he accompanied with a message deploring the tendency toward greater deficits and blaming it for a variety of economic ills (Rosenman). As late as July 1933, President Roosevelt referred to the Economy Act as “the base of the whole recovery plan,” and the administration continued to praise itself for its economizing activities throughout the year (Ibid). Many people showed concern and the credibility was shaken after the president’s budget message in January of 1934 because people saw a massive deficit approaching for the coming fiscal year.
            Debates were a continuous thing throughout this time, but Roosevelt could not stress enough the cooperation was absolutely essential for the country to press on and if both political parties could not agree on these new policies to help resurge the economy then everything would be undone and the policy would not work (Holt 33). At the heart of this initiative, according to New Dealers, lay the National Recovery Administration, established in June 1933 (Holt 33). The NRA did not represent a single economic strategy but rather provided a framework within which a number of persuasions and interest groups competed for supremacy (Hawley). It was the intention of New Dealers to create an economy that promoted balance and somehow the various divisions of society had lost connection with one another, which is problematic for any society and certainly one of the contributing factors to the Great Depression.
             The New Deal had tremendous influence over the private sector that had just collapsed. As depicted by most American historians in the 1950s, the “mixed economy” of the United States was a superlative blend of two worlds, a system that combined rational direction, organizational security, and stable growth with a large measure of democratic decision making, individual liberty, and local and private initiative (Hawley 50). The private sector was highly warped and as a result of the New Deal was interjected and redefined in order to make the system fair while also creating a different structure of the private sector. Of course much of the earlier policy and political interference was viewed as tyrannical because people still had a since of individualism and freedom which meant not having the government intervene on your business and making decisions for you and your business.
                        During the New Deal lots of policies were enacted to alleviate the substantial amount of poverty in the United States. This was the framework for modern day welfare programs. One of the large programs that Roosevelt considered necessary was the Social Security Act. This program was federally driven and was to be a way for people to set aside money for retirement. This would also create an unemployment insurance to help those who were jobless as well as welfare benefits for the handicapped and needy children. Instead of the money being gathered from simply taxing the public, it was taken from payroll taxes, which would give a better sense of savings when Social Security taxes were taken out of your paycheck knowing that it would be given back upon retirement.
            When analyzing President Johnson’s administration, he took a step further in the idea of Democrats creating a larger government in order to ensure a well functioning country. President Johnson’s administration was nicknamed “The Great Society” because he was able to establish several new government programs as well as expand government programs from the Roosevelt administration that resulted in a large reduction of people in poverty and has established and standard of how many people should be living in poverty since it has not reached that level since his administration in 1964.
The difference between President Obama and the other Presidential administrations was his approval ratings. Many people believed that the way he went about things and his actions were either wrong or unnecessary. The Affordable Care Act is still a hot topic and many Republicans still campaign that they will have it repealed if they are elected. Even when

analyzing food stamps, many people believed that it was unnecessary/too easy to acquire food stamps/people were simply taking advantage of the system to get benefits.
            It is understandable why people were upset about the Affordable Care Act because that was simply legislation that was forced through by President Obama, not to mention the fact that it is now mandatory to have health insurance, but why were all of the other initiatives so poorly rated by public opinion?
            When other presidents, such as President Roosevelt and President Johnson, were faced with high levels of poverty and increased government spending and programs, their approval ratings were good. When President Obama increased food stamps and related programs, many people thought it was bad, unnecessary, and a waste of taxpayer dollars even though poverty levels/unemployment had skyrocketed by the time President Obama was put into office.
Perhaps the general outlook of the American people has become more partisan and believes these programs are no good and will simply hurt the country. Maybe the general public simply believes that these programs are not needed and capitalism should just run its course.
            It is the great debate that continues to this day and is one of the reasons why the parties are established the way they are. I chose this topic in particular because it is essential to understand the dynamic of the United States of America and its government. If the general American people are not informed or simply misinformed on how these government initiatives have done tremendous strides for the country during some of the most desperate times it is important they are informed and understand that these have been the most effective ways on record that The United States of America was able to combat poverty, recession, and the Great Depression.


Bibliography
Public Papers of FDR. Rosenman.p 2:49-54. Acquired April 22, 2014

Ibid., 2:296. William Woodin. James A. Farley. Franklin D Roosevelt. New York Times. 11 December 1933.

The New Deal and the Problem of Monopoly. Ellis Hawley. Princeton, New Jersey 1968 p 19-146. Acquired April 20, 2014

The Triumph & Tragedy of Lyndon Johnson. Hawley. Texas A&M University Press. Acquired April 20, 2014

Car Allowance Rebate System: What is the Car Allowance Rebate System? U.S. Department of Transportation



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