and the Sherman Antitrust Act of 1890 were part of this expansion, breaking up trusts often at the expense of the states. The people had looked to the Federal government to protect them from their local government. The states believed in freedom from regulation and the freedom of the corporations to conduct their affairs without interference. The courts ruled in favor of federal power, and it helped equality of opportunity for smaller companies. Teddy Roosevelt with his New Deal changed the relationship between the states and the government. The question arose: are local problems national as well? The economy was in shambles, and the New Deal put forward a doctrine that a federal response was needed to the crisis. Teddy wanted to regulate the burdensome trusts and help working conditions. This was a time for expansion to in order to end poverty because neither businesses nor state governments could make any effect on the problem. The functions of the federal government expanded enormously. Various relief programs helped unemployment and stimulated economic activity. It was during this time that Social Security was born, and other programs included unemployment compensation, federal welfare programs, and price stabilization programs. The actual shift of power came through these programs because of federal regulation attached to them.The national government now assumed authority over areas of economic regulation and development that had previously been the states' domain. The climate of the time demanded this change and the courts responded by upholding the measures. The Supreme Court justified this expanded federal role, and since 1937 has pretty much allowed the national government to define the reach of its authority for itself. The Supreme Court supported the change from Dual to Cooperative federalism. Although the court struck down a lot of the New Deal programs, it took some power from the states with the income tax. The sixteenth a...
