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Dollar Diplomacy was a foreign policy President William Howard Taft created in 1909. The policy's purpose was to lend money to foreign countries in exchange for making decisions for the governments of the countries. The connection this event has to the theme of the changes in the national government's roles in economic issues is because this policy was deemed controversial since the beginning of its creation. Dollar Diplomacy failed because the American government was not prepared to handle the financial aspects of other countries. The government figured it would be easier than handling their economy but it was harder. Unfortunately, this policy had an impact on the creation of revolutions specifically in Mexico, Nicaragua, China, and the Dominican Republic. This unsuccessful policy strongly influenced economic and foreign policies for the future.

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Along with the Emergency Immigration Act of 1921, the National Origins Act was passed to set restrictive quotas on Eastern and Southern Europeans and prevent Asian immigration. President Calvin Coolidge passed this act due to fear of the rise of communist ideas especially after the First World War. Fear was rising in the country and to control the fear, laws had to be passed. This was a major change for the government especially with its social issues. Not only were Asians fully excluded from entering the country but now Europeans were being discriminated against because of the previous war. This not only affected society as a whole but the economy noticed a shift. The majority of the immigrants who were either fully excluded or governed by quotas made up the majority of those working in factory jobs. American factory workers thought since there were fewer workers their wages would increase but unfortunately, that was not the case. Wages decreased for American workers because of the decline of immigrants as well as the increased production of industrial goods, many workers could not keep up.

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One of the most important events in American history, the Great Depression was an economic recession starting in 1929 and and ending around 1939. This ten-year event caused economic misfortune for the country, factories and jobs were shut down and lost, and thousands of Americans were unemployed, hungry, and diseased. Bank failures, government policies, and stock market crashes were some of the many causes of this Depression. This event was a major change in the government’s economic role. Towards the beginning of the event, the government had to cease many jobs as well as take homes and businesses. Fortunately, after President Herbert Hoover’s presidency, President Franklin Roosevelt demonstrated another major change in the role the government played during these stressful yet revealing times.

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After a decade of constant struggle, the people of America gained hope and sought the new programs President Franklin Roosevelt created for America. Some of the major agencies created were the Civilian Conservation Corps (CCC), the Works Progress Administration (WPA), the Civil Works Administration (CWA), and the Federal Deposit Insurance Corporation (FDIC). These programs offered many things for financially unstable Americans such as financial assistance, new job opportunities, mortgages, loans, and even help with public work. This was a major shift in the government. After being blamed for the nation’s downfall in the economy and social issues, President Roosevelt provided a new change and hope for the thousands of Americans who lost their homes, jobs, and even family members.

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In August of 1941, Winston Churchill and President Franklin Roosevelt continued to progress saving the country’s alliances after World War 2 by establishing the Atlantic Charter. This declaration issued by the United States and Great Britain stated how neither country sought territorial gain, respected free trade among the nations, and the right for people to choose their own government. This document greatly changed the government’s role in many ways, specifically in providing the people the right to choose their own government. By proclaiming this declaration, both Great Britain and the US governments understood how cooperation and alliance would be the key to regaining stability and peace throughout the war. This charter also impacted the future of the world by setting a path for the future creation of the United Nations, the world organization that promotes safety and peace throughout the world.