Introduction
The New Deal is a controversial set of policies even today, with political discourse returning once again to the age old question of what the responsibility of government really is. But when one hears the debate between "big government" and "small government" As Milton Freedmen famously (and to some perhaps ominously) said in a 1965 issue of Time Magazine, "We are all Keynesians
now."
Eric Foner put it this way, "[The New Deal] made the government an institution directly experienced in Americans' daily lives and directly concerned with their welfare." (Foner, 870). Roosevelt changed the definition of liberalism from limited government and laissez faire economics to the belief in a proactive state that saw liberty "greater security for the common man." Security was defined as protecting not only freedom of speech and worship, but also freedom from want and fear, illustrated by Rockwell's famous The Four Freedoms.
"Presently when rhetorical debate among politicians yields terms like 'small government' and 'big government' they're really always referring to big government" (Green) at least in comparison to the pre-New Deal government.
The effectiveness of the New Deal's Keynesian policies, which will be further explored below, is ambiguous. It is generally accepted that the New Deal did not end the Great Depression, but rather World War II did. Roosevelt remarked in 1943 that "Dr. New Deal has gone into retirement to be replaced by Dr. Win-The-War." (Roosevelt, 929th Press Conference)
Keynesian economics is the idea that the economic output is strongly influenced and determined by the aggregate demand of products and the total spending in the economy.
What will be explored here is World War II not as a separate set of policy to the New Deal but rather as an extension of Keynesian interventionism in the economy. World War II was characterized by massive government spending and oversight of the economy, and even with the conservative resurgence that occurred in the Red Scare, Interventionism remains the norm in government policy.
Additionally, connections will be drawn between the situation in 1929 to the 2008 housing crisis, and modern political discourse will be analyzed with Keynesian ideas in mind.
The New Deal is a controversial set of policies even today, with political discourse returning once again to the age old question of what the responsibility of government really is. But when one hears the debate between "big government" and "small government" As Milton Freedmen famously (and to some perhaps ominously) said in a 1965 issue of Time Magazine, "We are all Keynesians
now."
Eric Foner put it this way, "[The New Deal] made the government an institution directly experienced in Americans' daily lives and directly concerned with their welfare." (Foner, 870). Roosevelt changed the definition of liberalism from limited government and laissez faire economics to the belief in a proactive state that saw liberty "greater security for the common man." Security was defined as protecting not only freedom of speech and worship, but also freedom from want and fear, illustrated by Rockwell's famous The Four Freedoms.
"Presently when rhetorical debate among politicians yields terms like 'small government' and 'big government' they're really always referring to big government" (Green) at least in comparison to the pre-New Deal government.
The effectiveness of the New Deal's Keynesian policies, which will be further explored below, is ambiguous. It is generally accepted that the New Deal did not end the Great Depression, but rather World War II did. Roosevelt remarked in 1943 that "Dr. New Deal has gone into retirement to be replaced by Dr. Win-The-War." (Roosevelt, 929th Press Conference)
Keynesian economics is the idea that the economic output is strongly influenced and determined by the aggregate demand of products and the total spending in the economy.
What will be explored here is World War II not as a separate set of policy to the New Deal but rather as an extension of Keynesian interventionism in the economy. World War II was characterized by massive government spending and oversight of the economy, and even with the conservative resurgence that occurred in the Red Scare, Interventionism remains the norm in government policy.
Additionally, connections will be drawn between the situation in 1929 to the 2008 housing crisis, and modern political discourse will be analyzed with Keynesian ideas in mind.