Roosevelt's Impact On The Economy

To advance government’s position in the matter, Roosevelt chose to provide relief to those who would in turn boost the entire private sector by spending their new income. One of the roots of the crisis, an insufficiency of demand, would not be fixed without deliberate government intervention. Rather than solely increasing government spending, by running a budget deficit, Roosevelt took on a different, more advanced approach. As John Keynes noted, the private sector was essential in raising the total income of a country, getting people to consume during a troubled time was necessary to refuel our economy. Yet, a measure such as this is hindered by the negative animal spirit that prevents consumers’ willingness to buy goods and services. To make up for this collective fear, the public sector must do whatever it can to persuade the private sector to spend. …show more content…
It was about that time to make money cheaper to encourage borrowing and investment in the newly recovered banking system. Private ownership of gold was no longer permitted and government purchased any gold that a citizen possessed to maintain the outlaw. The separation of gold and the dollar led to a deduction in the dollar’s value as a result of the collection and storing of a majority of gold in federal reserves. By means of this decrease, more bills were able to be printed and dispersed out to ordinary Americans who could now spend how they pleased. An inflationary measure started by Roosevelt was more accepted than one that might have been pushed by Congress, with the president ensuring that the measure was a huge step in establishing and maintaining continuous control as well as managing currency. By this time, it was quite apparent just how much government can assist in the market and how it is crucial to a damaged