What Keynesianism has to do with Roosevelt s New Deal

Keynes's General Theory had not yet been published at the time, and there were already a number of bourgeois economists who advocated intervention among the scholastic scholars around the United States before the New Deal.

So, the economic ideas of Roosevelt's New Deal were similar to Keynesianism, but they did not come primarily from Keynes.

The main ideas of Keynesian thought are consistent with the measures of Roosevelt's New Deal.

After the outbreak of the Great American Crisis, Roosevelt's New Deal coincided with Keynesianism. Both advocate state intervention in the economy. This has led to the emergence of a new form of state intervention in the economy.

Keynes advocated a deficit policy and a policy of stimulating economic growth through state investment, which alleviated the catastrophe of the Great Crisis of Capitalism in a short period of time, and Keynesianism was adopted by more countries after World War II, and the major capitalist countries entered the stage of state monopoly capitalism.

Roosevelt's New Deal, which was once recognized by the ** faction as violating the requirements of capitalism, was a socialist approach, which was also related to the economic success of the Soviet Union at that time. Therefore, in the measures adopted by Roosevelt's New Deal, try to avoid the emergence of a state monopoly economy.

Roosevelt's New Deal preceded Keynesianism.

Roosevelt's New Deal began in 1933 with Keynesianism (also known as "Keynesian economics") as an economic theory based on the ideas of Keynes's General Theory of Employment, Interest and Money, published in 1936.

From the point of view of the macroeconomic mode of capitalist state management of the world, the emergence of Keynesianism is a turning point, that is, from laissez-faire to state intervention in the economy, from taking the balance of payments as the basic principle of financial management to promoting balanced economic development as the basic principle, and from taking taxation only as a factor of income to a factor of balanced economic development.

I. Reasons for Roosevelt's New Deal.

1. The root cause was the great devastation of the economic crisis that broke out in 1929.

2. The direct reason is that the United States suffered the most serious losses under the blow of this crisis, but Hoover ** at that time was at a loss for it. By the beginning of 1933, half of the banks in the United States had failed, and the total number of total unemployed had reached 15 million, 17 million. In this situation, Roosevelt won the support of the overwhelming majority of voters with his campaign manifesto advocating greater economic intervention, and was elected the 32nd term of the United States, and then began to fulfill his promise.

Second, the main features of Roosevelt's New Deal.

Full intervention in the economy, while retaining capitalist free enterprise.

3. The impact and evaluation of Roosevelt's New Deal.

Because the economic crisis is caused by the basic contradiction inherent in capitalist society, it is impossible to eliminate this basic contradiction without changing the capitalist social system. And the purpose of Roosevelt's New Deal was to consolidate and maintain the capitalist system in the United States, so it could not be an economic crisis. But it does have a positive impact in many ways:

Direct impact: It alleviated to a certain extent the severe damage caused by the economic crisis to American society, promoted the recovery of social productive forces, and consolidated the rule of capitalism.

Indirect effects: Due to the recovery of the economy, the social contradictions were relatively eased, and to a certain extent, people's confidence in the US state system was restored, thereby curbing the fascist forces that were active during the economic crisis and preventing the United States from embarking on the fascist road.

Far-reaching implications: The New Deal adopted a policy of comprehensive state intervention in the economy, setting a precedent for capitalist countries to strengthen economic intervention. It not only became the beginning of the modern American state monopoly capitalist economic system, but also had an important impact on the development of economic policy in many other capitalist countries.

Since then, Western countries have successively abandoned the traditional laissez-faire economic policy and gradually strengthened macroeconomic guidance for the economy. Especially after World War II, state monopoly capitalism was further developed.

Impact: 1. To a certain extent, the capitalist relations of production have been adjusted, and the social contradictions have been eased.

2. It has brought the United States out of the economic crisis and has also had an exemplary effect on other countries.

3. Since then, state intervention and regulation of the economy have become the general policy orientation of capitalist countries in the 20th century.

Roosevelt's New Deal:

It refers to a series of economic policies implemented by Franklin D. Roosevelt in 1933 after taking office in the United States, the core of which is three contents: relief, recovery and reform, so it is sometimes called the Three Rs New Deal. The New Deal greatly alleviated the economic crisis and social contradictions brought about by the Great Depression by increasing direct or indirect intervention in the economy.