Humanities 30-1

Franklin D. Roosevelt was forced to face an overwhelming crisis when introduced into

his Presidency in 1933; a war within his own country against the failing economy. As a

responsible, newly elected President, Roosevelt analyzed the country’s current circumstances,

the needs of the country and its citizens, and developed a response of action towards fighting

against the emergency. In comparison to the principals of Classical Liberalism which were

presently embraced by North America, Roosevelt introduced revolutionary ideologies through

his “New Deal”, which included perspectives of Modern Liberalism and Keynesian Economics. In

recognizing the economic turmoil which his nation had nearly drowned in, during his first

inaugural speech Roosevelt stated, “I shall ask the Congress for the one remaining instrument

to meet the crisis – broad Executive power to wage a war against the emergency, as great as

the power that would be given to me if we were in fact invaded by a foreign foe”, which

demonstrated his understanding that in order to rescue his suffering nation, it was necessary to

intervene and overthrow the current free market system to create a stable economic structure.

The ideological perspectives of Modern Liberalism and Keynesian Economics demonstrated by

Franklin D. Roosevelt must be embraced and accepted to build and sustain a reliable economy.

The Great Depression during the 1930’s proves the necessity of government involvement within

an economic system, especially during times of hardships. Although current nations like the

United States are considered to follow a free-market system, there is no country with a true

free market economy because some form of government intervention, much like the principals

of Modern Liberalism which have recently been reintroduced by President Barack Obama, are

necessary for success and sustainability. Throughout history it is demonstrated that the

principals of Modern Liberalism are essential to stabilize the economy and to recover from the

revisiting recessions.

With the fluctuations of a free-market economy, it is natural to go through times of

prosperity, and times of recession and recovery. But in the 1930’s, following a time of economic

prosperity and consumerism, the United States was hit with an overwhelmingly severe

economic depression. Frustrated with the conditions brought on by the economic collapse, the

people of the United States came to believe that the government should take a greater role in

the economy to prevent such extreme fluctuations from happening again. The developing idea

of government intervention within the economy was introduced by John Maynard Keynes

through his strategies of Keynesian Economics. Keynes’ supporter, President Franklin D.

Roosevelt, implemented his “New Deal” which incorporated the aspects of Keynesian

Economics, and began the shift towards a welfare state and mixed economy. By embracing the

principals of Modern Liberalism through public work programs, social security systems and

unions, and the introduction of the new meaning of “people who matter”, Roosevelt was able

to supply relief to the unemployed, reform to the economy, and recovery from the Depression.

Following the ideology of Modern Liberalism which was embraced by Roosevelt and the citizens

of the United States, there was a growth in government involvement in economics which still

continues in many forms to this day.

The present United States of America is the best current example of a free-market

economy. But the underlying fact to be understood is that there is no true free-market system,

because in each “free-market” there is still some aspect of government intervention. In the

United States, the principals of Classical Liberalism are the most heavily embraced, and they are

deeply reliant on free-market forces. The market forces determine quantities, prices, and

distribution through supply and demand, and individuals have personal freedoms and

responsibilities. Although the United States focuses on free-market forces, the government still

intervenes by setting regulations on businesses and individuals, providing labour standards, as

well as social programs and welfare state in order to guarantee economic stability. Especially

after the election of Barack Obama as President in 2008, the understanding of the importance

of embracing the principals of Modern Liberalism nationally and internationally began to

develop due to the turmoil which the global economy currently faced. With the rise of Barack

Obama, a hope developed that a better world was possible, and a new recognition of the

importance of a government’s role within the economy grew across the borders of the world.

Despite being considered a free-market economy, the United States still embraces the

principals of Modern Liberalism which were introduced to them by their past President,

Franklin D. Roosevelt.

As recognized by Franklin D. Roosevelt during his time of Presidency in 1933, the

principals of Modern Liberalism are a reliable source for stability and success within a nation

and its economy. A government who embraces the principals of Modern Liberalism is able to

provide strong and reliable support within the economy, especially during times of hardship. As

discovered by President Roosevelt in 1933, and by President Barack Obama in 2008, by

embracing the principals of Modern Liberalism and including their nation’s government within

the economy, the formation of a successful, sustainable structure within the economy, as well

as the nation, develops, and prospers.