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Keynesian Theory and the New Deal- The crash of the stock market brought many hard times Franklin D Roosevelts New Deal was a way to fix these times John Stuart Mill and John Maynard Keynes were two economists whose economic theories greatly influenced and helped Franklin D Roosevelt devise a plan to rescue the United States from the Great Depression it had fallen into John Stuart Mill was a strong believer of expanded government which the New Deal provided John Maynard Keynes believed in supply and demand which the New Deal used to stabilize the economy Franklin D Roosevelts New Deal is the plan that brought the US out of the Great Depression It was sometimes thought to be an improvised plan but was actually very thought out Roosevelt was not afraid to involve the central government in addressing the economic problem The basic plan was to stimulate the economy by creating jobs First Roosevelt tried to help the economy with the National Recovery Administration The NRA spread work and reduced unfair competitive practices by cooperation in industry Eventually the NRA was declared unconstitutional Franklin D Roosevelt then needed a new plan Keeping the same idea of creating jobs he made many other organizations devoted to forming jobs and in turn helping the economy One of those organizations was the Civilian Conservation Corps This corps took men off the streets and paid them to plant forests and drain swamps Another of these organizations was the Public Works Administration This organization employed men to build highways and public buildings These were only some of the organizations dedicated to creating jobs Creating jobs was important because it put money in the hands of the consumer This directly affected the supply and demand The more money they had
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