1) Franklin D. Roosevelt introduced modern liberalism and Keynesian economic policies through his New Deal in response to the Great Depression in order to intervene in the failing free market system and rescue the suffering US economy. 2) The New Deal incorporated aspects of Keynesian economics like public works programs and social security to provide relief and economic recovery. 3) While the US is considered a free market economy, no country has a truly free market because governments intervene to some degree, as Roosevelt and modern liberals like Obama have recognized, in order to maintain economic stability.

1. Humanities 30-12010The Reliance on Modern LiberalismBreanna NielsenPerspectives on Ideology<br />Franklin D. Roosevelt was forced to face an overwhelming crisis when introduced into his Presidency in 1933; a war within his own country against the failing economy. As a responsible, newly elected President, Roosevelt analyzed the country’s current circumstances, the needs of the country and its citizens, and developed a response of action towards fighting against the emergency. In comparison to the principals of Classical Liberalism which were presently embraced by North America, Roosevelt introduced revolutionary ideologies through his “New Deal”, which included perspectives of Modern Liberalism and Keynesian Economics. In recognizing the economic turmoil which his nation had nearly drowned in, during his first inaugural speech Roosevelt stated, “I shall ask the Congress for the one remaining instrument to meet the crisis – broad Executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe”, which demonstrated his understanding that in order to rescue his suffering nation, it was necessary to intervene and overthrow the current free market system to create a stable economic structure. The ideological perspectives of Modern Liberalism and Keynesian Economics demonstrated by Franklin D. Roosevelt must be embraced and accepted to build and sustain a reliable economy. The Great Depression during the 1930’s proves the necessity of government involvement within an economic system, especially during times of hardships. Although current nations like the United States are considered to follow a free-market system, there is no country with a true free market economy because some form of government intervention, much like the principals of Modern Liberalism which have recently been reintroduced by President Barack Obama, are necessary for success and sustainability. Throughout history it is demonstrated that the principals of Modern Liberalism are essential to stabilize the economy and to recover from the revisiting recessions. <br />With the fluctuations of a free-market economy, it is natural to go through times of prosperity, and times of recession and recovery. But in the 1930’s, following a time of economic prosperity and consumerism, the United States was hit with an overwhelmingly severe economic depression. Frustrated with the conditions brought on by the economic collapse, the people of the United States came to believe that the government should take a greater role in the economy to prevent such extreme fluctuations from happening again. The developing idea of government intervention within the economy was introduced by John Maynard Keynes through his strategies of Keynesian Economics. Keynes’ supporter, President Franklin D. Roosevelt, implemented his “New Deal” which incorporated the aspects of Keynesian Economics, and began the shift towards a welfare state and mixed economy. By embracing the principals of Modern Liberalism through public work programs, social security systems and unions, and the introduction of the new meaning of “people who matter”, Roosevelt was able to supply relief to the unemployed, reform to the economy, and recovery from the Depression. Following the ideology of Modern Liberalism which was embraced by Roosevelt and the citizens of the United States, there was a growth in government involvement in economics which still continues in many forms to this day.<br />The present United States of America is the best current example of a free-market economy. But the underlying fact to be understood is that there is no true free-market system, because in each “free-market” there is still some aspect of government intervention. In the United States, the principals of Classical Liberalism are the most heavily embraced, and they are deeply reliant on free-market forces. The market forces determine quantities, prices, and distribution through supply and demand, and individuals have personal freedoms and responsibilities. Although the United States focuses on free-market forces, the government still intervenes by setting regulations on businesses and individuals, providing labour standards, as well as social programs and welfare state in order to guarantee economic stability. Especially after the election of Barack Obama as President in 2008, the understanding of the importance of embracing the principals of Modern Liberalism nationally and internationally began to develop due to the turmoil which the global economy currently faced. With the rise of Barack Obama, a hope developed that a better world was possible, and a new recognition of the importance of a government’s role within the economy grew across the borders of the world. Despite being considered a free-market economy, the United States still embraces the principals of Modern Liberalism which were introduced to them by their past President, Franklin D. Roosevelt. <br />As recognized by Franklin D. Roosevelt during his time of Presidency in 1933, the principals of Modern Liberalism are a reliable source for stability and success within a nation and its economy. A government who embraces the principals of Modern Liberalism is able to provide strong and reliable support within the economy, especially during times of hardship. As discovered by President Roosevelt in 1933, and by President Barack Obama in 2008, by embracing the principals of Modern Liberalism and including their nation’s government within the economy, the formation of a successful, sustainable structure within the economy, as well as the nation, develops, and prospers.<br />