Transcript The Lasting Impact of the New Deal 1933-1941

A Changed Mindset
 Federal Intervention?
 The Federal Govt. exists
to help American People
in distress
 Many Federal Agencies
Created
 Deficit Spending to
spur economic growth
 Deficit Spending to help
people
 Loss of independence?
 Have we become
dependent
 Increased taxes
 Expect too much from
government ?
The Wealthy pay more?
Raise Takes?
Keynesian Economic Theory
 Macroeconomic theory
based on the ideas of 20th
century British economist
John Maynard Keynes.
 Private sector decisions
can lead to negative
outcomes
 Monetary policy actions by
the central bank and fiscal
policy actions by the
government are needed to
stabilize the economy
 Mixed Economy – both





Private and Government
influence in the Economy
Government Spending
Interest Rate Adjustments
Deficit Spending may be
necessary
Anti-Laissez Faire
Excessive Saving stifles
growth and recovery
Still in our lives Today…
 Tennessee Valley
 FDIC (up to $250,000)
 Social Security – Money for
the elderly, disabled and
dependent children
 Indian Reorganization Act
– dedicated land for Indian
tribes
 Minimum Wage Laws
Authority(TVA) –
A series of Dams and Hydro
Electric plants providing
electric power to the
Tennessee Valley
 Security and Exchange
Commissions(SEC) Regulates the Stock Market
and Investment Practices.
 National Labor Relations Act
(Wagner Act)
 Worker’s rights
 Collective Bargaining