Briefly explain ONE difference between the role of the federal government in the United States economy during the Gilded Age and the role of the federal government in the United States economy in the 1930s.

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History

Trevor

20 July, 00:25

Briefly explain ONE difference between the role of the federal government in the United States economy during the Gilded Age and the role of the federal government in the United States economy in the 1930s.

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Gillian Duncan · Answer 1

During the Gilded Age, federal role was limited to development of agriculture and giving financial support to companies involved in railroad system. They had little role in business.

During 1930s, role of federal increased substantially. They started to take call in business and think about taking the economy out of depression.

Explanation:

US saw Gilded Age after the American Civil War. During this period, there was rapid increase in industrialization. Railroads were built during this time.

Small industries became big.

However, during this time, there was an increase in corruption. Economy was dominated by few individuals and people used to work for them only.

In 1930s, there was global crisis and it resulted in great depression which started from United States. In US, it was crash of stock market which led economy to drop drastically by end of 1929.

During this time, the federal government started to take active steps to overcome this.

During this time, Herbert Hoover was the President. He started releasing more of federal funds for public projects and asked employers not to do wage cut for their workers.