The Great Depression

TheGreat Depression

Whatimpact did the Great Depression have on the way government setpolicy?

Priorthe Great Depression, the government was not largely involved ineconomic affairs. Similarly, people believed the government did nothave any responsibility to fend the poor. Private individuals andcharities took the initiative to offer their help to the citizens(McEachern,2012).With the Great Depression, these perceptions changed. The governmentstarted to make policies and expanded its intervention in theeconomics and social affairs. In addition, it created socialassistance agencies to help its citizens. This led to creation of agood relationship between the government and its citizen.

Further,the Great Depression led to creation of the New Deal Program andLiberal Political Alliance that was made of blacks, labour unions,religious and ethnic minorities, the poor, and intellectuals. Indeed,the Great Depression is currently affecting the Obama’sadministration as it stimulates the economy.


McEachern,W. A. (2012). ECON Macro 3 (3rd ed.). Mason, OH: South-Western.