A Changed MindsetFederal Intervention?

The Federal Govt. exists to help American People in distress

Many Federal Agencies Created

Deficit Spending to spur economic growth

Deficit Spending to help people

Loss of independence?Have we become

dependentIncreased taxesExpect too much from

government ?

The Wealthy pay more?

Raise Takes?

Keynesian Economic TheoryMacroeconomic theory

based on the ideas of 20th century British economist John Maynard Keynes.

Private sector decisions can lead to negative outcomes

Monetary policy actions by the central bank and fiscal policy actions by the government are needed to stabilize the economy

Mixed Economy – both Private and Government influence in the Economy

Government SpendingInterest Rate

AdjustmentsDeficit Spending may

be necessaryAnti-Laissez FaireExcessive Saving stifles

growth and recovery

Still in our lives Today…FDIC (up to $250,000)Social Security –

Money for the elderly, disabled and dependent children

Indian Reorganization Act – dedicated land for Indian tribes

Minimum Wage Laws

Tennessee Valley Authority(TVA) –

A series of Dams and Hydro Electric plants providing electric power to the Tennessee Valley

Security and Exchange

Commissions(SEC) - Regulates the Stock Market and Investment Practices.

National Labor Relations Act (Wagner Act)Worker’s rightsCollective Bargaining