Kenysian Policy Essay
Keynesian Economic Model and Fiscal Policy
In the massive economic crash of 1929, the government did not play such a key role in rebuilding as did in the 50s. With the stock market, and banks going under, people lost their jobs and many were homeless, it was the worst economy the United States has ever seen. The president tried a few tactics and they never really worked, trying to boost consumer spending to create more jobs and boost the economy.
By 1932, the budget was so far out of balance that a revenue bill cut government expenditures and imposed a huge tax increase on the ailing economy. President Hoover authorized the creation of the Reconstruction Finance Corporation, to pump $2 billion in investment money into …show more content…
Presidents have tried to use government stimulus packages to boost the economy. When Obama was elected, he soon started the “cash for clunkers” program, where people could trade in their old cars and get money for them to help purchase a new car. This program worked and many people took advantage of it. This is turn boosted consumption which helped the economy out of the slump. There are many methods to help boost the economy. Some we have tried in the past that