The Great Depression & Roosevelt's New Deal
- The US introduced tariffs to encourage domestic consumption, rather than imports, which slowed international trade down and further hurt the economy around the world. Large businesses failed, and Americans were forced to spend less, which slowed the economy. Many were unemployed and lost their homes and land.
- The Wiemar Republic in Germany wasn't being provided loans from America anymore to help with the WWI debt, this put Germany is a hard state and later encouraged the leadership of Nazism.
- Roosevelt’s New Deal was a series of programs that focused on relief and reform and recovery. The Federal Deposit Insurance Corporation was created in 1933 for individual bank deposits. There was redistribution of power among businesses, consumers, farmers and workers. Unions were encouraged, and The security and exchange commission was formed. The deal extended government involvement and intervention. It showed an understanding that liberal principles apply to more than the rights and freedoms of industrialists, but to the average citizen as well.
Ebb & Flow of Liberal Economic
Following the stock market crash, the economy was in ruins, therefore the government decided it was time to step in and help those that had lost their livelihood in order to revive the economy. Roosevelts new deal created social programs and spent government money in order to get people back to work and boost the economy, this displayed the economy`s shift from a free market to a mixed economy and from classical liberalism to modern liberalism