Government +Market Be Rational Uic& Hkbu Homework

By Ken Wang Emilie Tang ID:08533105 ID:08532826

How does a rational government + How does a rational government + market should be ?market should be ? 1.Joseph Stalin’s

model? 2. Great Depression in

1929.

3. What about Franklin .D. Roosevelt’s achievement to the U.S in 1933?

Open door policy

VS Irrational people Irrational market

Impact to S U

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Collective farming Joseph Stalin created a

highly concentrated model in Soviet Union agriculture ,we do not want to emphasize his personal failure, but under this model the policy by government was very irrational

Great depression The great depression conduct

hundreds million of unemployment and the

million of bonds become a . waste paper in one day It is

obviously the market failure its function and the market law ineffective and seemd it is

happening now in the world but we ask the reason the

irrational market mostly ’ come out by some people s

. irrational actions The big inflation came out great

depression.

Let’s summarize a little bit. In the historical

points of view, people cannot depend on governmental adjustment only, either the invisible hand. They both cause “disaster” in economic development and the running of the international system.

No matter rational government or market, they have to be operate in the way which is true of the development of economic.

Franklin D. Roosevelt “ large sums of federal money for

direct payments to needy citizens through grants (rather than loans) to the states.

A vast program of public works— the construction of public buildings, highways, dams, and similar projects— was begun under the Public Works Administration (PWA).

provisions for paying farmers to reduce the acreage of certain crops and to limit livestock holdings. These measures were intended to reduce surpluses, which caused low prices.”

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Great diction of economic reform Deng talk about

economic reform is imply “Socialism with Chinese characteristics” and make the society especially the economic part get development. It also was a good example of combination capitalism and socialism. Some times mixture is a rational action.

References Relief Measures, , Roosevelts New Deal

:// . . / - / - - .http history howstuffworks com american history roosevelts new deal htm :// . . / / / / / _ 2.http www ifad org lrkm theme husbandry pi impact htm

' " "Analysis of Roosevelt s New Deal :// . . / /84.http www cyberessays com History htm