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Economic Role in Shaping Actions by the Government in 1930-1980 - Essay Example
The period from 1930 to 1980 has been very crucial for the US economy. The economy faced one acute depression that shook the Americans at the worst. Followed by this the World War 2 put heavy burden on the economy but the country used this event very strategically in its favor and turned the period as the real base for restructuring the economy to acquire leadership in the future…
The economic history of this period of 1930 to 1980 will be testimony to this fact.
The depression set in 1930s created challenging tasks for the government to undertake in order to find solution of the problem concerning economy and finance. Roosevelt was elected president in 1932 and he followed the principle propounded by Keynes, the British economist who believed that deficit spending during recessions and depressions could revive national economies. His theories became the basis of Roosevelt's New Deal approach. During first hundred days Congress and Roosevelt established many New Deal agencies, including CCC, FERA, CWA, AAA, TVA, and PWA to deal with the crisis..
In 1934 Congress created Securities and Exchange Commission (SEC) The president; immediately set to work creating New Deal policies to end Great Depression.In1933 immediately after taking the oath of office, He set out to provide relief, recovery, and reform in his programs known as the New Deal.
In 1933 Roosevelt declared a five-day national bank holiday to close banks temporarily with the hope that a short break would give the surviving banks time to reopen with strong new breathe.. ...