The Great Depression And The "New Deal"

Part I of Essay
In 1932 almost 1500 banks failed, 32,00 businesses closed their doors and one-fourth of the labor force in the United States was unemployed. In that same year Franklin Delanore Roosevelt was elected president. He took office in 1933 with the economy and the nation in a s ....

Part II of Essay
.... government was needed. For the answer we must turn to an economist by the name of John Maynard Keynes. He developed an economic theory that said that the forces of supply and demand operated to slowly in a serious recession, and the federal government should step in and help stimulate the economy. This theory became known as Keynesian Economics. In terms of the Great Depression the economy was at a serious imbalance because the public sector was saving more than usual and the business sector was not investing at a typical level. Therefo ....