Navigation
Page #1 Page #2 Page #3


Keynesian Theory and the New Deal

The crash of the stock market brought many hard times.                
 Franklin D. Roosevelt's New Deal was a way to fix these times. John   
 Stuart Mill and John Maynard Keynes were two economists whose
economic theories greatly influenced and helped Franklin D.
Roosevelt devise a plan to rescue the United States from the Great
Depression it had fallen into. John Stuart Mill was a strong
believer of expanded government, which the New Deal provided.
John Maynard Keynes believed in supply and demand, which the New
Deal used to stabilize the economy. Franklin D. Roosevelt's
New Deal is the plan that brought the U.S. out of the Great
Depression. It was sometimes thought to be an improvised plan,
but was actually very thought out. Roosevelt was not afraid to
involve the central government in addressing the economic problem.
The basic plan was to stimulate the economy by creating jobs. First
Roosevelt tried to help the economy with the National Recovery
Administration. The NRA spread work and reduced unfair competitive         
practices by cooperation in industry. Eventually the NRA was declared      
unconstitutional. Franklin D. Roosevelt then needed a new plan.            
Keeping the same idea of creating jobs he made many other                  
organizations devoted to forming jobs and in turn helping the economy.     
One of those organizations was the Civilian Conservation Corps. This       
corps took men off the streets and paid them to plant forests and          
drain swamps. Another of these organizations was the Public Works          
Administration. This organization employed men to build highways and       
public buildings. These were only some of the organizations dedicated      
to creating jobs. Creating jobs was important because it put money in      
the hands of the consumer. This directly affected the supply and           
demand. The more money they had the more they could spend.       
            




Links:
Link# 1
Link# 2
Link# 3
Link# 4
Link# 5
Link# 6
Link# 7
Link# 8
Link# 8
Link# 8

Catalog# 1
Catalog# 2
Catalog# 3
Catalog# 4
1