Describe the impact of the Keynesian economic principles in the Hoover and Roosevelt administrations.

Keynesian economic principles influenced the administrations of both Herbert Hoover and Franklin Roosevelt, especially the administration of Franklin Roosevelt. Keynesian economic principles state that when an economy goes into a recession or a depression, the government should actively be involved in trying to end it. Keynesian economic principles called for significant government spending to try to help end an economic downturn.

President Hoover is often associated with laissez-faire economic policies. These policies call for little government involvement in the economy. However, as the Great Depression worsened, President Hoover called for a significant increase in government programs to try to deal with the Great Depression. The National Credit Corporation, the Emergency Relief and Construction Act, and the Reconstruction Finance Corporation are examples of programs that President Hoover developed to try to ease the effects of the Great Depression. These programs increased government spending. However, the Great Depression was so severe that these programs didn’t help to end the Great Depression.

President Roosevelt started immediately after he took office to try to develop programs to deal with the Great Depression. In his first 100 days in office, many programs were developed. During his first two terms, there were so many programs that called for increased government spending to try to help end the Great Depression. Programs that created jobs such as the CCC, the CWA, and the PWA are examples. The TVA and Home Owners Loan Corporation are additional examples of programs that increased government spending to try to help get the economy going again. The Social Security Act and the AAA were other programs that were developed. The government went into debt because it spent so much money trying to end the Great Depression.

The difference between President Hoover and President Roosevelt is that President Roosevelt immediately worked to end the Great Depression and had many more programs than President Hoover had to end the Great Depression. President Hoover also waited a few years before implementing his programs that reflected Keynesian economic principles. While both men used the ideas of Keynesian economic principles, President Roosevelt was much more active in using them.