Government Role in Wealth

Government Role in Wealth - Steve Cameron Dr Pearson...

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Steve Cameron Dr . Pearson Business 194 10/20/2008 Investing in Infrastructure: The Role of Government Spending on Infrastructure in Reducing Poverty History has shown that government spending on infrastructure can reduce poverty and allow a country to remain competitive in the world’s economy for years . In the early 1930’s America was in the worst depression noted in its history . Over 25% of the workforce was out of jobs, and there appeared to be no relief in sight . In 1933, however, Roosevelt started his “New Deal” program, creating jobs for millions and, in the eyes of many economists and historians, pulling America out of the Great Depression . At least four of the programs started by Roosevelt were public works projects that looked to strengthen the infrastructure of the entire country (Alphabet Agencies) .
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In the 1930’s Franklin Delano Roosevelt created the Works Progress Administration (WPA), the Civil Works Administration (CWA), the Public Works Administration (PWA), and the Civilian Conservation Corps (CCC) (Alphabet Agencies) . All four of these agencies were similar in that they hired unskilled laborers at barely livable wages to complete enormous projects and keep the infrastructure of te nation up to date . Schools and pipe lines were repaired, trees were planted, parks were built, as were roadways and bridges . Today, the United States remains the economic superpower of the world, and many of Roosevelt’s public works agencies are to thank. Many are still in operation today, though their role has been diminished and divided into newer organizations and private sectors of the economy. One of the most famous projects was the Blue Ridge Parkways, created by the young men who were hired by the Civilian Conservation Corps (Alphabet Agencies) . Just seven years after many of these programs were initiated, the GDP of the United States had nearly doubled from 68 . 3 billion dollars in 1933, to 113 billion dollars in 1940 (Department of Commerce) . Today, Roosevelt’s strategy of strong public administration and the development of a strong national Infrastructure have been duplicated in numerous other countries . Including New Zealand after its adoption of a new government in 1935 (Encyclopedia of New Zealand) . In her book Poverty and Inequality in South Africa: Meeting the Challenge, author Juilian May suggests combating depression of an economy with “a labor intensive approach to the delivery of infrastructure and services by government” (Poverty 261) .
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