During the period from 1917 to 1945, the role of the government in the economy underwent significant changes. The government’s involvement in the economy increased as it took on a more active role in regulating and controlling various aspects of economic activity.

One major shift was the government’s increased intervention in the economy during World War I. In order to support the war effort, the government implemented various measures such as price controls, rationing, and the nationalization of industries. This marked a departure from the laissez-faire approach of the past, as the government actively intervened to ensure the smooth functioning of the economy during the war.

Following the war, the government’s involvement in the economy continued to expand. The Great Depression of the 1930s prompted the government to adopt a more interventionist approach to address the economic crisis. President Franklin D. Roosevelt’s New Deal policies aimed to stimulate economic recovery through government spending, job creation, and the regulation of financial markets. The government also established social welfare programs such as Social Security to provide a safety net for citizens.

Additionally, the government played a significant role in mobilizing the economy during World War II. It implemented measures such as price controls, rationing, and the allocation of resources to support the war effort. The government also heavily invested in defense industries, leading to a significant expansion of the military-industrial complex.

Overall, the period from 1917 to 1945 witnessed a shift towards a more active role for the government in the economy. The government intervened to address economic crises, regulate industries, and mobilize resources during times of war. This marked a departure from the limited role of the government in the economy prior to this period.