benchmark quiz

Why was Laissez-faire the dominant economic policy of the USA federal government for most of its existence, until the Great Depression did away with it forever?

Our economy was small and we didn't want the government involved, but it got to the point the government had to help. It worked and was doing good before the great depression when our economy was small and growing. during war times it was not pleasurable, when our economy got big then Laissez-faire wasn't good enough and we replaced it with regulation.

How did the federal government evolve as a result of the Great Depression?

As a result of the great depression, the size and the scope of the government got bigger and the presidency, federal government was involved more, federal government took a giant leap left on the spectrum, there was more spending

Which New Deal reforms still regulate the banking industry today?

FDIC- federal deposit insurance corporations, Glass Steagall Act

How does the USA federal government regulate the banking system in this country, since the Great Depression?

The fdic ensures that people will have money in the bank, if the bank goes under the people will still have money backed up, the glass steagall, it separates so the bank wont go and blow all of your money

Why did the USA federal government need to regulate the stock market for the long term, as a result of the Great Depression?

There were people that would lie and hold accountable, and so you couldn't be in the end and then automatically go up to first, to help fairness

Why did the USA federal government need to regulate the banking system for the long term, as a result of the Great Depression?

These help the banks from completely crashing. The government provides safety nets. the banking system collapsed, and that system is the reason why our money circulated money

What conclusion did most politicians (from both sides of the isle) come to, in regards to the federal government's role during an economic recession or depression?

They had to be more involved, but you are going to have to spend to be able to circulate the economic growth during hard times.

Why was direct relief so unpopular before and during the Great Depression, by most people in both major political parties of America?

They were afraid that Americans would depend too much on the government, no work (competition) going on in the economy, we wouldn't be able to work.

Why was the Social Security Act needed, to help maintain capitalism in the USA in the years after the Great Depression?

They were trying to curve unemployment, it worked during the depression.. so there are constantly jobs opening up, and opening up the money comes from the people themselves, social security was a main way to help opening capitalism

Why did FDR and the federal government believe it was so important for labor unions to be allowed to organize and protect workers?

To curve the problem of uneven distribution of wealth, higher wages, better working conditions, less hours