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The Pros And Cons Of Austerity Policy

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Austerity policy is not good in the current situation, because it could cause revolution, increasing unemployment, decreasing GDP,export and government cannot afford money on education, so poor people became not to be able to go to school. I think austerity policy is for when country is in a good time, not recession. (Pettinger, 2013). Stimulus policy is much better than austerity policy though there is some problem. It leads to increase GDP, inflation, economic growth and decrease unemployment. But the country has no power in such a situation to run the stimulus policy, further if high inflation, high government spending and tax reduction, these three situations become stronger. It is impossible to run stimulus policy because a current deficit …show more content…

People cannot be given a good welfare because of cutting spends, but they have to pay high tax, who would agree with this policy. It seems to be able to fix a dramatic fall in government tax and dramatic rise in social spending, but it causes of revolution if it happened that economics will be worse than now and the worst thing for government is an approval rate must down. Especially, people who live in this country now are living in low tax and higher spending situation. How can they adopt austerity policies? Nobody will be able to do. E.g Thousands of people have taken part in a protest in central London against government …show more content…

Trading company must be profitable. Not only that, all the businesses produce lots of product and because of employment rate is higher, economics growth rapidly. To prevent saving money in a bank, the central bank conducts a monetary policy and low interest rate encourage people to spend more money. Fiscal policy is conducted too. As was When Government expenditure cut for trying to stop stagflation that causes of economic down turn in stagflation, it is important to stimulate the supply side for that company have to create a new effective machine and reduce cost of manufacturing then aggregate demand of other countries will up. However, a cost of manufacturing decreased, if another country doesn’t want to product or there is nicer price other countries product, unemployment doesn’t up. If could attract other country for new product, aggregate demand of other countries will be up, government should invest in R&D for that. Franklin Roosevelt promised a new deal for the American people. He stabilised the banking system. All banks under federal control. Although he can restore and staved off the collapse of the banking system, the problem of the unemployment was more difficult. But he did three

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During the Great Depression “the currency was becoming more valuable every day, rarer and scarcer” (Shlaes 108). The Great Depression was the reason to change and reform government. Even though Shlaes wrote Roosevelt and his New Deal made the Depression stay longer, but in reality to recover from the Great Depression, Roosevelt New Deal helped economy to get back in track. The New Deal made the government to be more involved in people’s life. New Deal used Government as an agent and started to intervene in the economic institution in order to recover from the failure.

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This tragic event sent Wall Street into a complete frenzy and took out millions of investors. Over the next few years, consumer investment and spending decreased. This caused sharp declines in manufacturing production and rising levels of unemployment. By 1933, 13 plus million Americans were unemployed and nearly half of the country’s banks failed (Coker, 2005). Thanks to the reform and relief measures placed by President Franklin D. Roosevelt helped diminish the most horrible effects of the Great Depression.

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He promised that the government would intervene in the economy to provide relief for the great depression, he proposed a ‘new deal’ that would give millions of Americans jobs and create a more stable US economy. “Roosevelt faced the greatest crisis in America since the Civil War.” (Franklin D. Roosevelt Biography). In the beginning of his presidency, he began to make good on his promises, he created many agencies and associations to help get the economy under control and to help lower the unemployment rate. As the economy was stabilizing and the unemployment rates and GDP were beginning to rise back up to normal levels, he fell under criticism for putting too much power in the government’s hands for controlling the economy.

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And for people to have faith in him did mean something for him to become president. Roosevelt knew what he was going in for when he ran for president during the economic crisis. And Roosevelt as a President did bring many changes to the country. With the New Deal I would say that there was an economic change because even though the Great Depression did not end the improvement of the economy did rise up. Many people had gotten job even though some struggled at the rate of 20 percent of the people still looking for jobs and were unemployed Roosevelt did help as much as he can to get the economy back on its feet.

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To give a different outlook, President Roosevelt’s New Deal failed to bring the Great Depression to an end. The unemployment rates remained stagnant, and the economy was never properly stimulated to secure the private business and the banking sectors. Due to the importance of private business and banks in a free enterprise economy, the Federal neglect caused the United States to lag behind other nations in unemployment rates. Similarities were seen in France, primarily due to their social and economic policies causing their levels of industrial production to be lackluster (Best

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957 Words | 4 Pages

Britain had been less dreadfully affected by the Great Depression but Britain 's industrial and export sectors continued to be seriously depressed until World War II. By 1931 many other countries had already been affected by the Depression. Almost all of the nation 's looked to protect their domestic production by imposing tariffs, increasing current tariffs, and placing quotas on foreign imports. The outcome of the restrictive measures put into place were to tremendously decrease the volume of international trade. The nation 's economic health slowly worsened as the president and business leaders attempted to convince the citizenry that rehabilitation from the Great Depression was imminent.

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In the following days of October, an incredible misfortune occurred. This event would soon be known as “Black Tuesday”. This unfaithful day was the day where the stock market plummeted leading to a great crash in the economy. This led plenty of individuals to become homeless and live in a state of poverty. Many of these individuals began to create their own society's known as Hoovervilles.

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Reagan was able to cut government funding by 25% to support the US economy. Reagan believed with government imposing less taxes the economy would benefit because the US citizen would be making more money. Reagan discusses his idea for reform to try to improve the economy in his inaugural address. “This Administration’s objective will be a healthy, vigorous, growing economy that provides equal opportunities for all Americans, with no barriers born of bigotry or discrimination. Putting America back to work means putting all Americans back to work.

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Roosevelt and his involvement greatly improved industry and the economy and would

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This was one of the biggest reasons FDR was voted into office in hopes that he could help not only the country, but capitalism itself recover. There were many good things about the New Deal. During this time of year it solved many of the problems in America. It also helped many of the unemployed find work. Thousands upon millions of people were relieved.

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I believe as a society we have moral obligation to provide healthcare to all the citizens of our nation. How would that become possible is the question? No matter what we choose as the solution to this problem, there will always be pros and cons. I think the answer is socialized medicine. Can a country like the US have socialized medicine?

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In 1932, FDR got elected, and he believed that reform, relief, and recovery were the steps to save America’s economy from its depression. He approved every program and laws, known as the New Deal, to help American people. The New Deal was a success due to its efficient economy recovering results and

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If you got lucky and did not get fired the wages fell and the buying power increased. The americans that were forced to buy on credit fell into debt,and the numbers of repossessions and foreclosures increased steadily. The gold standard fixed currency exchanged around the world, and helped spread economic distress from the U.S. through the world.7When the country elected Franklin D. Roosevelt he promised he would create federal government programs to end the Great Depression.8 The federal government programs allowed people to get more jobs and help the economy increase. Roosevelt was a big influence during this time period and impacted many people, giving jobs to citizens and boosting the economy. After Franklin Roosevelt created the federal government programs it allowed the economy and society to grow and strength from the unlucky situation.

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Within the realm of mankind, it can often become difficult to escape, whether in mind or body, the bonds of cultural normalcy. Different cultures surround everyone on earth, with each managing to become ingrained into the thoughts and actions of its people. Eventually, many of these cultural aspects can become so integral to a person’s identity that it becomes difficult for them to imagine anything different. However, as demonstrated in Margaret Cavendish’s "To the Reader" section of "The Blazing World,” literature provides a path of liberation. The “Blazing World,” as she calls it, is a “world of [her] own creating,” which serves to “divert [her] studious thoughts…and to divert the reader with variety” ().

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Relief for the unemployed, Recovery of the economy and Reform so there was not another Great Depression. FDR aimed to help the economy recover and to do this, created the New Deal. His far-reaching vision was to put American’s back to work and fix the economic collapse. It created jobs, establishing public work programs and encouraged

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