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The Cold War Economy - Essay Example

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An author of the essay "The Cold War Economy" claims that it was through e the establishment of varied acts and strategies, which economists of the day though would not only boost the private sector but also the entire economy (Whitfield, 2008)…
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The Cold War Economy
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"The Cold War Economy"

Download file to see previous pages This is by availing its population with reliable employment opportunities and other essential services like housing, education for the veterans and other services, hence comprises some of the strategies during then aimed at empowering private sector. The American regime during cold war adopted or utilized mixed economy in its quest to evade fiscal anguish evident in the way it boosted the private sector. In order to ensure the then depression did not cripple banking industry, the state intervened with the intention of cushioning loaning process especially. As Mooney explains, “The Federal Housing Administration (FHA) established during the Great Depression to revitalize the real estate and home construction industries played a central role in creating postwar suburban America (Mooney, 147).” Hence, boosting the housing market by instituting FHA such that private sector did not have doubt in recovering their invested resources. This is through subsidizing long-term loan mortgages that acted as a great boost to the private sector towards doubling their efforts. This led to the creation of American suburb areas, which the private sector during then could not manage.It assisted veterans who wanted to go to college or technical school; it also helped millions of veterans purchase homes by guaranteeing mortgage loans made by private lenders (Moony, 139).” The aim of this Bill entailed evading the burden of the returned population from the war as they started to age. Since once they do not have anything to rely on will be the burden of the state to cater for their respective upkeep in terms of medical care. By imparting them with appropriate knowledge and varied skills within few years, they will be able to depend on themselves. In addition, the government will channel financial support meant for their care to other sectors, hence boost the economy. The government also came up with tight laws meant to secure firms’ interests such that employees backed by their respective unions could not result in “wildcat strikes” which extremely expensive. According to lecture notes, “1947 Taft-Hartley Act established certain Presidential powers to be used to retain order in certain emergency situations (such as a strike or lockout that would likely cause adverse effects on an entire industry or would threaten national health, safety or security) (Lecture notes, November 13, 2013).” Hence, showing the then relationship between private sector and the central regime in ensuring both private sectors, which in this case encompassed industries and workers coexisted well. This is by ensuring both parties once there were any misunderstandings they were capable of resolving them adequately and effectively without resulting to injurious incidences. Some of these injurious or detrimental incidences encompassed unnecessary strikes and sometimes firms retrenching workers due to their respective union persuasions. ...Download file to see next pagesRead More
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