How did the New Deal changes the role of the federal Government - Research Paper Example

Congress passed several laws to aid businesses and farmers authorize public works schemes and allow huge spending to create employment opportunities for American citizens (Welch, 68). The New Deal presented the notion that government was accountable for the welfare of its citizens. Prior to the New Deal programs, American citizens were exposed to rise and fall in economic conditions; depended on financial aid from churches, families, local communities during difficult times; and had no pension plans from the government (Norton, 777).

The New Deal established a framework of social security for the elderly, introduced unemployment compensation, passed a minimum wage, and offered financial aid to women and children who lacked support. The federal government also started regulating the stock market and banks and protecting employees’ rights to form unions and bargain collectively. The New Deal, though suspected by some, brought a remarkable change in the attitudes of citizens toward receiving assistance. Law Date Passed Goal Cause Effect Social Security Act 1935  14th August 1935 All states had to create a plan for unemployment insurance.

Employees and employers had to pay into a federal pension account. The act established the first federal old age pension that covered over 35 million citizens. National Labor Relations Act. 6th July 1935 To equalize bargaining power between workers without total freedom of association or authentic liberty of contract and employers who are structured in the commercial or other kinds of rights association. To reduce the causes of labor disputes weighing down or blocking interstate and distant commerce, and create a National Labor Relations Board among other purposes (Boston, 708).

To promote collective bargaining between free trade unions, for the employees, and the employer. Unfair labor practices Election of bargaining representatives The act increased the powers of labor unions. It ensures fundamental rights of private sector workers to form trade unions, take part in collective bargaining for better conditions at work and better terms, and take group action including strike if required. The law established the National Labor Relations Board which performs elections which, if endorsed for representation, gives labor unions a requisite for the employer to employ collective bargaining with this union.

Agricultural Adjustment Act May 12, 1933 To minimize crop surplus and as a result effectively increase the value of crops. A plunge in the agricultural economy in the early 1930s that greatly affected all famers. The law restricted agricultural production by issuing payments to farmers in form of subsidies to kill off surplus livestock and not to plant on sections of their land. Economy Act, 20th March 1933 To diminish the federal deficit in the United States. To balance the "regular" federal budget by slashing the salaries of government workers cutting veterans’ pensions by 15%.

The salaries of federal workers were cut and the benefit payments to veterans reduced. The law did not affect the federal deficit or the economy much. It increased expenditure in other areas substantially that it reduced the cuts enforced by the Economy Act. The law gave the President restricted authority limited authority to restructure executive division agencies to attain competence. Emergency Banking Act 9th March 1933 To create a provision for a scheme of reopening banks under supervision of the Treasury supervision, and provide federal loans where