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New Deal

loyment and in 1930 he wrote his Treatise on Money. Ten years before he died he wrote his General Theory of Employment, Interest and Money. Above all he believed in supply and demand. This was an indirect way to let the economy balance itself. In order for this system to work people needed money. This could only be done by creating jobs. Keynes also believed that to reduce unemployment the government needed to increase the aggregate demand. The aggregate demand is the total amount of goods being demanded. The government could do this by creating jobs. These jobs would provide people with money to spend on products. The ability to pay and the increase desire to spend would increase the demand for goods. The demand for goods would rise and the demand for workers would rise. This would slowly reduce the unemployment rate and put the economy back where it was before the crash of the stock market. In Arthur M. Schlesinger Jr.'s book The Politics of Upheaval it's stated that Franklin D. Roosevelt and Keynes communicated on several occasions such as, letters, English tea meetings, and messages delivered via mutual friends. Although Franklin D. Roosevelt never publicly embraced Keynes' theories, and at times voiced disagreement with parts of his theories, there were many similarities between the works of the two men. Franklin D. Roosevelt took these philosophies and created the New Deal, which eventually brought the United States out of the Great Depression. John Stuart Mill gave Franklin D. Roosevelt the idea of an active government and John Maynard Keynes showed him how to do it. Although Franklin D. Roosevelt never really liked economists it appears that the work of many economists showed up in his New Deal. Although Mill did not directly influence FDR his philosophies were present in Franklin D. Roosevelt's plan. Also, Keynes theories were disagreed on time and time again by FDR, but in the end the New Deal was almost a perfect example of K...

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