Keynesian Economics in the Great Depression

President Franklin D. Roosevelt was elected President of the United States in 1932 and inherited the worst economic depression in the history of the country. The Question on the mind of many Americans was: how would FDR respond to the Great Depression?
FDR's predecessor, Herbert Hoover, was consider by many to be an ineffectual leader due to his response, or lack thereof, to the Great Depression. The President did very little to address the economic issue. Instead, he decided that the situation would correct itself overtime in the same way that all recessions and depressions had in the past. This solution was not appealing to the millions of Americans who were under severe economic strain from the Great Depression. Now that Franklin D. Roosevelt was in office, the citizens of the United States waited to see his response to the greatest economic downturn that the nation had ever experienced.
John Maynard Keynes was a British economist that deviated from conventional economic conventions about how to deal with downturns in the economy. Like President Hoover, the classical reaction to booms and busts in the economy was to let the market take its course and for the government to not respond. Keynes approach was the antithesis of the prevailing wisdom.
Keynes asserted that it was the role of the government to create jobs and infuse the market with money and jobs during economic downturns. The reason for this was because he believed that economic downturns were the result of a lack of demand. Therefore, the government should create demand to reinvigorate the economy.
Keynes proposed that the primary way that government could rejuvenate the economy was by investing in infrastructure. The reasoning behind this was that infrastructure is always good for economy because it makes transpiration more efficient and quicker. Also, infrastructure jobs employ a great deal of people and, at the time, required only basic skills that most men possessed. Keynes economic policies have been coined Keynesian economics.
President Franklin D. Roosevelt promised America a New Deal that would improve their lives and help pull the United States out of the Great Depression. While the New Deal consisted of several different policies one the biggest and most expensive policies was government spending on infrastructure.
One of America's most iconic landmarks, The Hoover Dam, was created as part of the New Deal. This was a massive government infrastructure project that employed thousand of Americans. In addition to this project thousands of miles of highway and other infrastructure were created under the New Deal.
Most historians agree that World War II, not the New Deal, got the United States out of the Great Depression. However, there is little doubt the FDR's policies came directly from the playbook of Keynesian economics which is still one of the most important economic theories to this day.


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