In: Economics
Can someone give me 3 specific examples of when government expanded its power?
1. Between the Civil War’s conclusion and the New Deal (1865-1940) the perceived role of government, long viewed as strictly limited, began to change in response to growing economic complexity, matters of civil rights, and questions of national security. Choose three examples from this period that illustrate such expansions of governmental power, explain them, and then assess how well they balanced acting for the common good while still respecting individual rights and the free market. (Reconstruction, the Progressive Era, World War I, and the New Deal are good places to focus upon for this question)
Reconstruction, the Progressive Era,
After 1870 and civil war, US witnessed huge jump in industrial and agricultural sectors productivities. It is estimated that over 70 % increase in average income of American people was witnessed. This is known as Era Reconstruction.
Government sought to promote the private sector where it was efficient. Further, rise in income of people helped them to better assert their civil and political rights. Hence, it maintained balance between government intervention and capitalistic system. It helped to maintain efficiency.
World War I,
Government intervention in economic and political activities was inevitable during this period. Defense expenditure increased through this period. But still it did not change role of government fundamentally.
New Deal
In the back drop of great depression, US president launched scheme to revive depressed and distressed economy of US. It was known as the New Deal. It changed role of government fundamentally in economic activities. Government participation in economic activities was mammoth through this period. But intervention was aimed at restoring economy to its previous equilibrium level.
But it was true that government did not compete with private sector, instead helped private sector to revive again. Government participated in economic activities where private sector was not ready to come.