During the Great Depression, President Hoover cut the government spending and increasing tax, which is the approach that want to solve the economic recession problem. However, this approach did not work, and American economics became worse and worse. President Roosevelt had a different policy to fix this problem. He agreed Keynes’s opinion, so he considered that government needs to spend more after the trouble and help people out of the recession. Empirically supported that Hoover Dam gave tens of thousands of people new life, they had more money to expand and also brought economic growth. Just like Michael Hiltzik who is author of Colossus: Hoover Dam and the Making of the American Century said in the interview that “Without Hoover Dam, San Diego, Los Angeles, Salt Lake, Phoenix, Denver, would not be anywhere near the size they are today.” Recently, a huge solar power factory has built in the desert of Arizona. The American government tries to use this project to bring the America out of trouble. Can this project have a good result like the Hoover Dam and achieve the expected goal? The world wait and see what happens. Although the Keynes’s policy cannot absolutely solve the problem of poverty, it can reduce and control the gap between the rich and the poor. And also, it avoids all capital or money flow to the …show more content…
The free market, causing capital accumulates in the hands of wealthy faster. Keynes advocated that using income redistribution to solve income inequality. Collecting the tax from the rich, and then the government uses this money to develop public project. Just like the Hoover Dam, this kind of public plan can create a huge number of job opportunities. The poor can find a job and get pay which means that they can consume more. According to the Keynes’s theory, the market is demanding orientation. When people have money to pay what they want, the demand of the market definitely rises. Some people would say that, it caused the government bearing a lot of debt, and it is really high risk. Although it leads to the government financial deficit, it helps economic to keep running. Only if inspire people to spend, the country can recover from the economic recession, and also making the tax growth which can help the government to pay off the debt. Therefore, Keynes policy cannot basically fix the inequality problem, but it can reduce the gap between the rich and the