What was one effect of the New Deal? Thousands of government workers lost their jobs. The powers of the president became significantly weaker. The role of the federal government in Americans lives expanded. Recame a one-term president when he lost the 1936 election.
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One major effect of the New Deal was the expansion of the federal government's role in the lives of Americans. Programs like Social Security and various job creation initiatives helped redefine the relationship between citizens and the government, making it more involved in economic stability and welfare. This marked a significant shift toward a more active federal presence, aiming to provide a safety net during tough times. Additionally, the New Deal introduced reforms that helped stabilize the banking system and stock market, leading to increased public confidence. The Federal Deposit Insurance Corporation (FDIC) was established to insure bank deposits, which helped restore trust in financial institutions. As a result, Americans were more willing to deposit their savings and invest, contributing to economic recovery.