7. Beating Hoover in a landslide Franklin
Roosevelt (D) become president.
8.
9.
10. KEYNESIAN OR "PUMP PRIMING" ECONOMICS
BASED ON THE WORK OF ECONOMIST JOHN MAYNARD
KEYNES. HE ARGUED THAT MONEY SHOULD BE INVESTED
IN THE PEOPLE, THE WORKING CLASS. SPENDING WOULD
THEN INCREASE WITH NEW MONEY IN CIRCULATION. AS
SPENDING INCREASED IT WAS EXPECTED THAT BUSINESS
WOULD EXPAND TO MEET THE NEW DEMAND AND HIRE
NEW WORKERS. THIS WOULD BRING ON MORE SPENDING
AND MORE GROWTH.
THIS PLAN WAS THE OPPOSITE OF THE REPUBLICAN PLAN
ASCRIBED TO BY HOOVER AND EARLIER LEADERS. THEY
HAD BELIEVED IN SUPPLY SIDE OR "TRICKLE DOWN"
ECONOMICS. IN THIS PHILOSOPHY MONEY WAS TO BE
INVESTED AT THE TOP, IN BUSINESS. THEN BUSINESSES
WOULD EXPAND, HIRE NEW WORKERS AND THIS IN TURN
WOULD SPUR ON SPENDING AND FURTHER ECONOMIC
GROWTH.
FDR’S PHILOSOPHY
