New Deal Dbq

After the Roaring 20s, the country was in despair due to the Great Depression. May people were unemployed, and had no way to help themselves. Conservative presidents such as Herbert Hoover and Calvin Coolidge didn’t use the power of the government to help the people during this time. They believed that government shouldn’t be in control of the economy and the industries that run it. Years later, Franklin Roosevelt will become president in 1933 and introduced the New Deal policy, which helped create thousands of jobs and revitalize a dying economy. Many agencies such as the FDIC, SEC, FDA and the IRS were made to help regulate business and the economy. The result of this is the creation an Active State, which is when the government takes a major

He was different than the conservative presidents before him because he was not against the New Deal or the Active State. He believed in Social Security and didn’t try to remove it or any other programs that helped those that cannot help themselves, such as Medicare or Medicaid. He didn’t try to get rid of the agencies that regulated the economy and society either. He was however, against the large amount of regulations that have been created by both Progressive Democratic and Republican presidents before him. Like the Republicans during the Roaring 20s, Reagan didn’t think that government should be so large and have so many regulations and social programs. Reagan was trying to make sure that the Active State could exist without suffocating the economy or stopping business from operating at maximum efficiency. He was the balance between the of the Progressive Democrats/Republicans and the Roaring 20s Conservatives, and only wanted an Active State was lean, mean and

This was a policy that required for 4 major things; cutting down government spending, building up the military, having massive tax cuts, and reducing government regulations. By doing these four things, it was believed that the country was to prosper economically. Along with these parts, Reaganomics also used the idea of “Supply side economics”. This economic idea revolved around the belief of two economic entities; the suppliers and the buyers. The suppliers are the ones who own business and the buyers are the ones who buys the product the supplier creates. In supply side economics, the government cuts many taxes to help the suppliers to operate their business. These taxes include corporate taxes, capital gains taxes, and taxes on the wealthy. Other things that a government using the supply side economic policy would do is cut down on regulation and make sure that the minimum wage stays low. By doing these things, the supplier wouldn’t have to pay as much and would gain a much larger profit, which would eventually “trickle down” into the economy and help the country itself prosper. The use of Reaganomics didn’t work in the end because it resulted in an incredibly large deficit to be created over the years of Reagan’s presidency. The average deficit of President Jimmy Carter, the president before Reagan, would be around $60 billion a year. Comparatively,