Assignment:
The Great Depression began when the Stock Market plummeted and caused the country the worst economic downturn in history. Unfortunately, President Hoover thought that it was not a big deal that it was just an issue that would pass. In 1933, when President Roosevelt took the position he started to try and stabilize the economy and provide jobs to the unemployed and even started what was called the New Deal. This concept was innovative programs and projects that would restore the Americans, and it permanently changed the federal government's involvement with the U.S. people. In Keynes' theory, one individual's spending goes towards another person's wages, and when that person uses his or her wages, they are in effect, supporting another person's earnings. This cycle continues and helps promote a normal, operating economy. When the Great Depression happened, people's natural response was to save their money. Under Keynes' theory, this suspended the circular flow of money, keeping the economy at a halt. Keynesian economics cautions against the practice of too much preservation and not enough spending, in an economy. It also promotes significant redistribution of wealth, when needed. What I have learned from the New Deal and the Keynesian economics can help improve our slow economy because it will help us fix our turnpikes, help us have higher paying jobs, and raise the taxes on the affluent and reduce the need to outsource jobs that are getting taken from the U.S.
Reference:
https://www.history.com/topics/new-deal
https://www.investopedia.com/terms/k/keynesianeconomics.asp