When Franklin D. Roosevelt (FDR) became president in 1933 during the great depression, he started the New Deal to get the United States out of it. The New Deal was a series of domestic policies that involved John Maynard Keynes’ theory of stimulus spending which argues that active policies and government involvement is what’s going to get the economy back up and running. Is the New Deal- Keynesian stimulus spending worthwhile? To this day, there’s people who argue that is not, that stimulus spending makes everything worst and the economy does better when the government leaves it alone by correcting itself. But stimulus spending has been proven to work several times and most importantly, it got the United States out of hole in was in.
Before the Great Depression, classical economy thinking dominated Macroeconomics and it 's based it on the theory of equilibrium which meant that …show more content…
This critiques are often the same people who oppose government involvement and still believe in a "laissez-faire" capitalism. Although the New deal didn 't completely get rid of unemployment or hunger it did restore faith in most Americans and lifted the economy to a certain extent. Also the controversy of stating that WWII got us out of the Great Depression lies on a simple fact: WWII was stimulus spending. The Federal Government controlled everything that was happening at the time of war; it told people which jobs they could work, how many items they could manufacture and even controlled the automobile industry. Huge amounts of deficit spending were needed to build guns, ships, ammunition, aircraft and other weapons, not only for the U.S but also for their
Before the Great Depression, classical economy thinking dominated Macroeconomics and it 's based it on the theory of equilibrium which meant that …show more content…
This critiques are often the same people who oppose government involvement and still believe in a "laissez-faire" capitalism. Although the New deal didn 't completely get rid of unemployment or hunger it did restore faith in most Americans and lifted the economy to a certain extent. Also the controversy of stating that WWII got us out of the Great Depression lies on a simple fact: WWII was stimulus spending. The Federal Government controlled everything that was happening at the time of war; it told people which jobs they could work, how many items they could manufacture and even controlled the automobile industry. Huge amounts of deficit spending were needed to build guns, ships, ammunition, aircraft and other weapons, not only for the U.S but also for their