Keynesian Economics and the Great Depression
Photograph of Works Progress Administration Worker Receiving Paycheck. Local Identifier: 69-N-19626; National Archives Identifier: 594956 Sandwiched between World War I and World War II lays one of the worst economic depressions in the history of the United States. After World War I, unlike other countries, the American economy was left intact, leading to a decade of prosperity and an overabundance of spending. So, what caused the most significant depression in American history? More importantly, what factors caused the American economy to awaken and roar back to life? Economists and historians alike have different ideas about what caused the great crash and what factors led to the revival of the American economy. To better understand this period in history and attempt to answer these questions, today's discussion will focus on the Keynesian Theory of Economics. Advertisement in Newspaper Before gettin...