The Great Depression and the New Deal – Assignment Example
The paper "The Great Depression and the New Deal" is a delightful example of a historical assignment. The Great Depression was indeed one of the most difficult times for Americans. Keynes tried to put forth his theory of ‘counter-cyclical demand management’, wherein the government must spend on the bottom of the income pyramid, he advocated. This would have acted as a ballast to the economy, as he believed that massive financial impact from the government would be a counterweight to the current market forces. Hence, the Depression could have been eased out, by following this concept of the government spending more, in order to counter the market conditions. The two ‘New Deals’, initiated by the Roosevelt government, were mildly on the Keynesian model. They chose to spend more, to try and counter the market conditions. The ‘New Deal’ can be called a frantic reform-strategy to safeguard capitalism. However, in spite of the right-wing lashing at Roosevelt for the reforms initiated, he stuck to the policies, which made it a pro-people initiative. Hence, Roosevelt’s government can be called a government with a human face, because it was for the economy and its people. As explained above, the big expensive government, was the only way to ease out the economy during the Depression, as suggested by Keynes. Hence, one cannot entirely blame President Roosevelt for introducing the reform measures. It was during his tenure that the Great Depression began to ease out, after the ‘relief, recovery, reform’ measures. Policies like reduced spending on military and prohibition made him a leader with practical policies, to counter the worsening economy, with guts and a vision.