Week 5 disc 2 Can Government Create an Economic Recovery Essay

Week 5 disc 2 Can Government Create an Economic Recovery - Essay ExampleThe frugal crisis during his tenure was caused by among other factors the collapse of the Stock Exchange in October 1929 failure of the banks to cushion customers money by insuring the cash reduced purchasing world-beater and drought (Robbins, 2007).According to Robbins (2007), President Hoovers administration announced practical and affordable plans aimed to balance the Federal spending reform the financial firmament reduce taxes and increase public works budget. Even though, these steps were gradual they had the potential to turn-around the American economy in the long-run, as opposed to the unexampled have under FDR.The Great Depression of 1930s and the Great Recession of (2007-2009) are similar in the sense that they led to massive job cuts and a trimmed private sector (Grabell, 2012). The governments response eight decades ago draws similarities to the current economic stimulus programs aimed at empowe ring the private sector by creating to a greater extent job opportunities and bringing the private sector back to life, almost instantaneously.Although, the two programs are believed to have eased budget shortfalls, especially for the private sector as a way of triggering the creation of more job opportunities, government spending is not the most effective way to deal with a major recession. The New Deal was more effective in restoring economy, since it was more