ADMS 1010 Lecture 4: Week 4 - The Government in the Economy [P2]
17 Jan 2012
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Week #4 the government in the economy. The great depression brings previously unheard of economic despair to canada and the western world. Due to our reliance on exports, agriculture and manufacturing, the great depression hurt canada more than most other countries. The great depression changed the view of state intervention into the economy. Ultimately, it was decided that the marketplace could not correct itself. It was up to government intervention to kick-start the economic recovery. John maynard keynes theories become prevalent in canada starting in world war. The government needed to take an activist role in the economy by increasing spending and reducing tax rates. Creating crown corporations and growing the size of the government was just one way to achieve this. We call that the rise of the public service was created out of the demands of easing the great depression. The idea that government could solve every problem from unemployment to socialized medicine.
