The Need for Stimulative Monetary and Fiscal Policies

D. Roosevelt in 1933 in direct response to the unemployment, poverty and economic deflation caused by the Great Depression (Romer, 2003:2), was a system of policy adjustments for which “Keynesian economics form the basis” (Henretta, et al., 2011:368). Before Roosevelt’s election, President H. Hoover had adopted policies based largely on classical economics – an essentially laissez-faire approach which favoured minimal government intervention (Dautrich & Yalof, 2013:426). The “Keynesian View” (Parkin, 2009:634), adopted by Roosevelt, “attempts to alleviate the pain of economic downturns, hold down the unemployment rate, and boost the disposable income of the worst off” (Boix, 1997:816) with government-implemented policy at its

In February 1933, “the Senate passed a resolution calling for the newly elected president, Franklin Roosevelt to assume unlimited power” (Bailey, Beth, et al. “Chapter 22: The Great Depression and the New Deal.” A People and A Nation: Brief Tenth Edition. Vol. 2. Stamford: Cengage Learning, 2015. 632-667. Book. [Further: Bailey, Blight, and Chudacoff]). Through the New Deal, Roosevelt sought to “revive the economy through economic planning and relief programs” (Bailey, Blight and Chudacoff). These relief programs helped many Americans find jobs and ultimately restore the economy.

When FDR took office, the United States was experiencing one of, if not the worst, economic depression. Labeled the Great Depression, FDR knew that extreme government policies would need to be implemented to combat the problems that existed. To do this, FDR’s “New Deal” policies did just that. Whether it be the Social Security Program or any other aspect of the New Deal, the response was highly effective. In fact, many programs from this time are still in use today, showing just some of the ways that the role of the federal government was changed due to the presidency of FDR.

Imagine being in charge of a nation that has so little money families are splitting up in search of work and many are losing their jobs and becoming homeless. This was the situation President Franklin Delano Roosevelt was facing at the beginning of the 1930s. He and his administration had to come up with a plan to end the depression and rebuild the economy before the fragile country crumbled even more. While some of their responses to the American Great Depression were more effective than others, they all impacted the nation in a positive way and changed the role of the federal government for the better.

Roosevelt responded to the great depression by creating the new deal. The new deal “set out to relieve the suffering of the unemployed and impoverished” during the great depression (New Deal Gale Encyclopedia). This means that through the new deal, Roosevelt was attempting to alleviate some of the burden that the great depression was placing on Americans. Roosevelt’s first move under the new deal “ was to restore confidence in the nation’s banking system” (New Deal Gale Encyclopedia). During the great depression a lot of people had lost faith in banks and withdrew all of their money. This hurt the banks and had a negative effect on the American economy so Roosevelt recognized that it was a problem that needed addressed. After the banking situation was handled, Roosevelt and “Congress turned [their] attention to the farm sector” (New Deal Gale Encyclopedia). This was done by passing the Agricultural Adjustment Act which provided subsidies to farmers who reduced crop production, thus raising the value of U.S. agricultural goods. Through these different acts and ideas Roosevelt attempted to address the great

Roosevelt. This World War One navy veteran saw the troubles that the United States was going through, (document 5) and promised a ‘New Deal’. During his run in office, he had three goals: Relief for the unemployed, repair the economy, and reforms to prevent another depression (the three R’s). The first thing Roosevelt did was fix the banking system. He knew that without stable banks, money would not be able to start flowing in the economy anymore. He ordered and ‘Bank Holiday’ and went through to all the banks making sure they were financially stable, and shut down the ones that were not. The nation soon had faith in Roosevelt and quickly saw brighter days ahead. Roosevelt provided relief for the unemployed through the Civilian Conservation Corps, and the Works Progress Administration. Both hired unemployed civilians to work building parks, playgrounds, hospitals, schools, etc. Roosevelt also provided recovery to the industry and farmers. He passed acts such as the National Industrial Recovery Act, and the Agricultural Adjustment Act. He paid farmers to start planting a variety of crop instead of competing in prices for the same product. He also provided long-term reforms and has so far prevented another depression through acts such as the Federal Deposit Insurance Corporation, and the Social Security

Preceding the Great Depression, the United States went through a glorious age of prosperity, with a booming market, social changes, and urbanization; America was changing. At the end of the 1920’s and well through the 1930’s, America was faced with its greatest challenge yet; the 1929 stock market crash. It would be the end of the prosperity of the “Roaring Twenties”. Now the American government and its citizens were faced with a failing economy. President Herbert Hoover was clueless to how to approach the problem. Hoover believed that government works best when it governs less, and should not intervene in the economy. Traditionally, he stayed out the issue hoping that the economy would fix itself; it didn’t. Hoover’s inaction makes his presidency look ineffective as if he caused the Great Depression. Franklin Delano Roosevelt (FDR) succeeded Hoover as president. Like Hoover, FDR didn’t know exactly how to help the economy. Unlike Hoover, FDR introduced experimental ideas and programs to help solve the issue. These ideas and programs would become a part of Roosevelt 's policies known as the New Deal which sought to fix America’s economic struggles. Despite short term successes, the New Deal implemented during the 1930 's by FDR did not lift the United States out of the Great Depression. Instead by intervening in the economy, and creating huge debt, the New Deal prolonged the Great Depression.

President Franklin D. Roosevelt tried the solve the problems if fear, chaos, hysteria, and decline of the American economy that came with the Great Depression. Roosevelt used relief, reform, and recovery to help the people. His plan was the “New Deal” which is seen as controversial. Although Roosevelt worked hard to improve the lives of American, there were still negative interactions between the different races and classes of the time.

The Great Depression had detrimental effects on American capitalism. The sudden crash of the stock market failed to allow Americans to achieve economic success. However, Franklin D. Roosevelt proposed new ideas to help the American economy find stability with his “New Deal”. Roosevelt’s presidency impacts the lives of American citizens today. President Roosevelt’s Administration was effective because it brought upon social change, decreased the unemployment rate, and altered the government's responsibility to ensure the welfare of their citizens.

The traditional view of Franklin D. Roosevelt is that he motivated and helped the United States during the “Great Depression” and was a great president, however, as time has passed, economist historians have begun analyzing Roosevelt’s presidency. Many have concluded that he did not help America during the Great Depression but instead amplified and prolonged the depression. Jim Powell wrote about FDR economic policies and did an excellent job explaining Roosevelt’s incompetent initiatives. Roosevelt did not know anything about economics and his advisors made everything worse by admiring the Soviet Union.

At the beginning of the nineteen thirties, more than 15 million Americans were unemployed(The 1930s-Facts and Summary). At the time, Herbert Hoover was the president. He claimed that all Americans needed to get through the crisis was patience and self-reliance(The 1930s-Facts and Summary). In 1932, Americans elected Franklin Delano Roosevelt president, because they were dissatisfied with President Hoover’s methods of relieving national debt. FDR pledged to use his political power to help relieve the economic crisis. FDR created a role for government in American life with his New Deal project. While the New Deal did not end the economic depression, it offered a safety net to millions of Americans. Another thing

The economy of the 1930s was a devastating financial situation that the American public will never forget. However, this doesn’t mean that history will cease to repeat itself. The political policies of Franklin Delano Roosevelt are often acknowledged for the relief of our country’s depression and some of which are still in effect today. To avoid our current recession, will Barack Obama choose to base his policies off of FDR’s in hopes that the same plan will work twice? There are some similarities and differences between the political action today and the action during the Great Depression.

In 1932, when Franklin Delano Roosevelt took office, the citizens of the United States had possessed sufficient time to realize that they could no longer be proud, but they must take anything they could get. Therefore, the programs set up by FDR’s New Deal program were perfect for the country at the time. These programs helped the people directly, providing relief, recovery, and reform. FDR based his plans on the philosophy of Keynesian economics, where the government spends money to make money. The government gave money and jobs to those in need, who in turn, had money to spend in the marketplace. The demand for products increased, and businesses were able to hire more workers and produce more products, as well as pay more money in taxes. FDR’s plans worked because they gave money not to those who would take advantage of the government, but to those who would use it in the way the government intended it to be used. During FDR’s first term in office alone, the unemployment rate dropped 4%. Because of FDR’s success in bringing the country out of the Depression, I give him an A.

When governments look at policies to reduce unemployment, they tend to look at the short term and then the long term. In the short term, they need to ensure there is sufficient demand and economic growth in the economy to help control cyclical unemployment. This is done by adopting

When President took office in March of 1932 he had an idea of a plan, which would have to develop over time, which was the "New Deal for the American People". He believed that if this plan went through, it would solve the problem of the Great Depression and restore the American economy. President Roosevelt's New Deal that took time to develop included programs that would help the unemployed get jobs, social security issues such as welfare, and housing and agricultural recovery. Roosevelt also included programs to help the banking system. President Roosevelt's New Deal failed to restore the economy as Roosevelt had hoped it would, but in turn it helped the people that suffered the most from the Great