How the Great Depression Changed the Federal Relationship

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The period before the great depression, the 1920s, was known as the Roaring Twenties or the Jazz age. This Era was marked by artistic movement such as the creation of Jazz music and a rich supply of American writing. During this time the federal government had been providing some aid to the states but leaving the bulk of the power to the states, which is known as a dual federalism. It also marked the end of modest social traditions and wave of materialism encouraged by increased customer spending with the open use of a new concept called credit.
As the Great Depression rolled in, a cry for the involvement of government in matters of the economy was sent out as the United States reached an all time low. When Wall Street crashed, millions of dollars plummeted and the country spiraled into the most severe economic downturn the United States has seen yet.
The little money the cities did have were quickly spent on the relief for the poor. The Americans who didn’t react to the great depression by blaming themselves responded with protests which were first uncoordinated and spontaneous, but then grow in size and support. Americans joined together to form unemployed councils, sponsoring marches for public assistance, and protesting the eviction of unemployed families from their homes. President Hoover’s response to the great depression, in the eyes of many Americans, was inadequate and uncaring. In the 1930’s, the administration remedies, like the Hawley-Smoot Tariff, made the economic situation worse. The SA tax increase that President Hoover also pushed through Congress further reduced Americans’ purchasing power. By 1932, Hoover had to admit the voluntary action had failed to stem the depression.
When Franklin D. Roosevelt was elected...

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...reasonable independence from the state. The grants offered to the states and the local government had very few specific terms and conditions.”During the 1930s grants were even larger, mainly because of the great volume of emergency grants”( 2013).
Due to the increasing number of collaborative intergovernmental efforts to address domestic matters reserved to the states, the United States shifted from dual federalism as the era of cooperative federalism began. Through FDR’s New Deal and grants the states and local government were encouraged to interact cooperatively with the national government to solve common problems, rather than making policies separately. Cooperative federalism continued through the administration of John F. Kennedy (1960-1963) and Lyndon Johnson (1964-1968) but with a greater emphasis on targeted aid to the poor in the form of categorical grants.

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