Lg 5 project

LG 5 PROJECT Chantel Giles

The Great Depression faced the United States for many years until 1940 where the government began heavy military spending and drafting millions of men into service. Employing around 17 million men and not to mention the increased demand for military supplies. It is well known that WW2 ultimately pulled the United States out of the Depression.

BUT WHAT IF WW2 NEVER HAPPENED?WW2 transformed the economy almost overnight. But If WW2 never happened the United States would of taken much longer to stabilize the economy.

After the Stock Market Crash of 29, unemployment had reaches 23.6%. Many Americans became homeless and over 500 banks has crashed. Not to mention drought and erosion caught The Dust Bowl which was a series of dust storms that caused families to abandon their farms.

I BELIEVE THAT SOCIAL DEMOCRACY WOULD BE THE BEST SOLUTION FOR THIS TIME. Classical Conservatism doesn’t have a strong set view on economy.

However, Neo-Conservatism believes that there should be limited government involvement , with limited social programs. I don’t think Neo-Conservatism would have the solution for mass employment. Even though they believe that the economy would start with a trickle-down theory where the wealthy would provide jobs for the poor; supply-side economics doesn’t provide enough stability to control the effects of the depression.

Other left-wing ideologies like Socialism, Marxism and Utopian Socialism would not gain much support in America. Even Roosevelt’s Work Program Act under this new deal was criticized for being communist.

THE SOLUTIONS THAT SOCIAL DEMOCRACY OFFERS:Employment through government created social programs still with a market economy. Third Way ideas that combines individual choice with the social opportunities of a welfare state. As well as Keynesian economics to increase the productivity of the economy. By adopting Social Democracy, Sweden became the first state to recover completely from the Depression.

STRATEGIES Social Programs to encourage demand and provide jobs.Progressive Tax to put more money in the hands of more individuals.Lower Interest rates to encourage InvestmentLower trade tariffs to encourage exporting

THE EFFECTS ON THE ECONOMYUsing the Keynesian model the government would most likely run deficits while the economy is slowed. They would of have to pay for the social services, but eventually the economy would start up again. Then governments can cut back on spending and cut unnecessary programs.

EFFECT ON CLASSESThe classes that would benefit the most from this ideology would be the middle and lower classes.The Welfare State would prevent the Working Class from falling into poverty