Question

Reply to the discussion post 1 and 2 in your own words:

Post 1: The best positive historical example would be the nationwide assistance of the government to avoid another depression or a full on recession. The Great Depression previously did the opposite steps of what the government would do today. Instead of taking money, they gave money back to the people. Doing so, kept money in the economy and people felt comfortable spending and keeping it going. In the past, government would take money away to try and fix it themselves. Shows that a lesson was learned, and it successfully was implemented.

The most negative historical example would be the power the USA holds. There are still wars that we are contributing to that we have no business in. Originally before Pearl Harbor, the USA wanted to avoid wars, however now, it seems that we look for it. Iraq, Syria, Etc. The US should focus internally how to develop as a country as they did back in WW1.

Post 2: The best negative example in the United States' financial history is the Fed's decisions leading up to and during the Great Depression. This event demonstrates the consequences of having an economy that is not manipulated by the Federal Reserve.

The best positive example in the United States' financial history is the Fed's decisions during and after the financial crisis of 2008. This demonstrated what the Fed had learned from the Great Depression and ultimately, in my opinion, prevented the economy from experiencing a subsequent depression.

Answer 1

Depression is an economic state where people would spend less thereby decreasing overall economic activity of the country and hence adversly impacts viability of Industries who expect the economies of scale to kickin. If govt takes money back from people by charging taxes and other way it would lead to further decline in economic activity. The answer to pearl harbor is altogether different as that is for an economic considerations that US GOvt would perceivably want war.