A Changed Mindset Federal 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 dependent Increased taxes Expect too much from government ? The Wealthy pay more? Raise Takes?

Keynesian Economic Theory Macroeconomic 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 Spending Interest Rate Adjustments Deficit Spending may be necessary Anti-Laissez Faire Excessive 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 rights Collective Bargaining