Rise Of American Welfare States Essay

Question 1

Rise of the American welfare state

The history of state welfare in the US can be described as one of continued growth and gradual change over the decades. In the early 1920s, America was literally a very prosperous nation as savings during that period had quadrupled. Millions of Americans were able to own their own homes in what was described by industrialists as a ’housing boom’. There was increased mobility for farmers and industrial workers since automobiles were no longer a luxury just for the rich; this was especially due to the aggressive advertising that became more rampant in the lives of moderate Americans. Moreover, organizations started offering employees stock-sharing opportunities as well as other benefits. This general abundance for the working class however overshadowed the intense poverty of specific vulnerable populations such as the old, minorities, disabled and the low income earners. This inequality created a ‘new poverty’ that proved to be dire as it led to infamous stock market crash of 1929 and hence kick starting the Great Depression. The sudden and devastating downturn of the economy and increased unemployment left many middle and upper-income families in utter shock and

In time of need for financial aid, what was required was an extensive institutional partnership between sectors of the American society and the federal government so as to adequately stabilize social welfare. Common belief was that the government in offering the poor relief but the enormity of the crisis required immediate national solution. Hence President Franklin sanctioned a New Deal for social security of the worthy and addressed unemployment by creating several federal programs and agencies hence settling social unrest. This way he was able to solve one of the biggest crises of the 20th century: the Great