Theme: Economic theory, social life, and people's perceptions of a market economy in general were all influenced by the Great Depression. Do an strong essay about the following questions
1- Describe how, in contrast to the liberals ('free markets') and the radicals (socialists), the Keynesian method to guiding economic public policy created a'middle way' or 'centrist' strategy in the USA in the 1930s.
2- What steps did Keynesian economists suggest taking to help society recover from the Great Depression? Explain them, especially the reasoning behind them. Also for this question remember that The overall logic employed by Keynes suggests that effective demand is what creates things like full employment, but unfortunately, sometimes this demand falls short and induces a recession. Even more unfortunate, he argued that 'the market' left to itself has no means to fix such a problem; without enough demand, there will be lots of unemployment, and with lots of unemployment, not enough demand. So, where can demand come from? Not business or households. That leaves the government as the only actor to 'prime the pump' or boost effective demand. How can the government do this? All kinds of ways! You just need to expand this section
3-Describe how post-World War II America was governed by the new Keynesian perspective that had come to be known as the "consensus," including how the state controlled the market system during this time and how it broke down in the 1970s, allowing a new, more "pro-business" approach to economic public policy to develop in the 1980s.
4- In conclusion, what are some of the most significant distinctions between the post-World War II era (also known as the "Golden Age") and the "pro-business" neoliberal age, and how can we explain them?
Theme: Economic theory, social life, and people's perceptions of a market economy in general were all influenced by the Great Depression. Do an strong essay about the following questions
1- Describe how, in contrast to the liberals ('free markets') and the radicals (socialists), the Keynesian method to guiding economic public policy created a'middle way' or 'centrist' strategy in the USA in the 1930s.
2- What steps did Keynesian economists suggest taking to help society recover from the Great Depression? Explain them, especially the reasoning behind them. Also for this question remember that The overall logic employed by Keynes suggests that effective demand is what creates things like full employment, but unfortunately, sometimes this demand falls short and induces a recession. Even more unfortunate, he argued that 'the market' left to itself has no means to fix such a problem; without enough demand, there will be lots of unemployment, and with lots of unemployment, not enough demand. So, where can demand come from? Not business or households. That leaves the government as the only actor to 'prime the pump' or boost effective demand. How can the government do this? All kinds of ways! You just need to expand this section
3-Describe how post-World War II America was governed by the new Keynesian perspective that had come to be known as the "consensus," including how the state controlled the market system during this time and how it broke down in the 1970s, allowing a new, more "pro-business" approach to economic public policy to develop in the 1980s.
4- In conclusion, what are some of the most significant distinctions between the post-World War II era (also known as the "Golden Age") and the "pro-business" neoliberal age, and how can we explain them?
