During the 1930's, the federal government became more involved in the daily lives of its citizens than ever before. It experimented in order to solve the major problems of the Depression. FDR admitted that if one of his pieces of legislation did not work, they would just try something else until they found the right way to solve the particular situation. The federal government took over previously jobs of the local and state governments, like federal aid, relief agencies, and establishment of jobs for the unemployed. Many Americans in both rural and urban areas of the nation did support the efforts of the New Deal. FDR’s Fireside Chats provided confidence and reassurance to many. Rural electrification, Social Security, insurance of bank accounts, protection for labor unions, and federal control over the economy gave many a sense of security in the future and in the government. While there were some radical movements during the Great Depression, the faith Americans had in their system of government did not falter. Many, however, were opposed to the growth of the federal government and the corresponding cost to maintain those new governmental agencies.
The Great Depression is often called a “defining moment” in the twentieth-century history of the United States. Its most lasting effect was a transformation of the role of the federal government in the economy. The long contraction and painfully slow recovery led many American citizens to accept and even call for a vastly expanded role for government, though most businesses resented the growing federal control of their activities. The federal government took over responsibility for the elderly population with the creation of social security, and gave the involuntarily unemployed compensation. The Wagner Act dramatically changed labor negotiations between employers and employees by promoting unions and acting as an arbiter to ensure “fair” labor contract negotiations. All of this required an increase in the size of the federal government.