Liberalism in the era of the Great Depression and the New Deal was concerned especially with issues of political economy and economic security, above all with the role of the federal government in reforming and strengthening the economy. But liberalism in America has never been unitary or unchanging. Not only were there various strands and emphases of liberalism from 1929 to 1945, but the dominant priority of liberal economic policy went from microeconomic regulation and control of the private sector in the early New Deal to macroeconomic fiscal policy to underwrite full-employment prosperity by the end of World War II.
American liberalism changed in character in the early 20th century. In the 19th century, it had been "classical" or "laissez-faire" liberalism, concerned with protecting individual liberty and economic freedom and otherwise limiting the power of the state. During the early 20th century, and particularly in the New Deal era, that limited-government approach to protecting economic liberty became the domain of conservatives, as progressives and liberals called for a strong state to achieve their aims. Though reformers of the Progressive Era had important disagreements about government policy, most agreed that stronger government was necessary to restrain the growing economic and political power of big business, to protect individuals from corporate power and corrupt politics, and to ensure opportunity in the face of the powerful modernizing forces of industrialization, urbanization, and large organizations. An important segment of progressivism, especially in the urban North, wanted government to take on a stronger social welfare role as well. In addition to its concern with economic issues, progressivism also emphasized moral regeneration—thus the campaigns to end corruption in business and politics, or to combat individual as well as societal ills by such measures as Prohibition. And the Progressive Era saw efforts to integrate immigrants into...