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  • Essay / How the Great Depression Changed Federal Relations

    The period before the Great Depression, the 1920s, was known as the Roaring Twenties or Jazz Age. This era was marked by artistic movements such as the creation of jazz music and a rich offering of American writing. During this period, the federal government provided some aid to the states but left most of the power to the states, which is known as dual federalism. It also marked the end of modest social traditions and the wave of materialism encouraged by increased customer spending with the open use of a new concept called credit. As the Great Depression took hold, a call for government involvement in economic matters arose. as the United States reached an all-time low. When Wall Street collapsed, millions of dollars fell and the country found itself in the most severe economic downturn the United States had ever experienced. What little money the cities had was quickly spent on helping the poor. Americans who did not respond to the Great Depression with self-blame responded with protests that were at first uncoordinated and spontaneous, but later grew in size and support. Americans united to form unemployment councils, sponsoring marches for public assistance and protesting the eviction of jobless families from their homes. In the eyes of many Americans, President Hoover's response to the Great Depression was inadequate and indifferent. In the 1930s, administration actions, such as the Hawley-Smoot Tariff, worsened the economic situation. The South African tax increase that President Hoover also pushed through Congress further reduced Americans' purchasing power. In 1932, Hoover had to admit that voluntary action had failed to stem the depression. When Franklin D. Roosevelt was elected... middle of paper...... reasonable independence from the state. The grants offered to state and local governments came with very few specific strings attached. “During the 1930s, subsidies were even larger, mainly due to the large volume of emergency grants” (2013). Due to the growing number of intergovernmental collaborative efforts to address domestic issues reserved for the states, the United States abandoned dual federalism at the beginning of the cooperative federalism era. Through the New Deal and FDR's subsidies, state and local governments were encouraged to interact cooperatively with the national government to solve common problems, rather than developing policies separately. Cooperative federalism continued during the administrations of John F. Kennedy (1960–1963) and Lyndon Johnson (1964–1968), but with greater emphasis on targeted aid to the poor in the form of categorical grants..