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Franklin D. Roosevelt: Political Economy Of The Welfare State

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Political Economy of the Welfare State In a state of desperation, amid the Great Depression that commenced from the stock market crash of 1929, a new economic approach was drastically needed. Alongside the economic downfall, were the massive gaps that currently existed, dividing up the classes of the society and labeling who’s who. Those who worked long and hard to build our country seemed to be the very ones falling apart, the crash hurting workers far more than capitalists or owners of production. The coined period of the Gilded Age that existed prior to the Great Depression is what led to the intensity of its effects; the inequality that was evident was exemplified in the transfer of income and wealth. The existing flow of income and wealth was an imbalanced upward spiral, with …show more content…

President Franklin D. Roosevelt viewed this current structure and accepted the democratic role of fixing up the shambled nation, after taking office he immediately began working on the constructive New Deal. The New Deal featured a plethora of repair elements, however the most important one was the recognition of government’s power to restore. Roosevelt increased the power of the state in regulating a once free and risky market, one that lead to excessive inequality and too left a group of individuals deprived of their basic needs. To start off the New Deal’s saving grace, a number of market interventions were implemented to recover the health of the economy. Roosevelt’s patch-up began with the damaged finance system, because reviving money and credit in the country would help to build strength and longevity. To launch this financial rescue,

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