Problem of great depression is the problem to explain it
Capitalism and the free market economy was responsible for the great depression, and only gvt intervention brought about americas economic recovery.
Rooselvt steer the nation toward recovery.
Capitalism cannot be trusted, fbt needs to take an active role in the economy to save us from inevitable decline
Phases
Monetary policy and the business cycle
The desintegration of the world econonmy
The new deal
The wagner act
1. business cycle:
longest depression.
Political Mismanagment of the money and credit supply
Harmful interventions
Margin lending on stock exchanges, and margin requirement.
Margin requirement began to raise and borrrowers were required to pay a larger share of the purchase price of the stocks
Boom matures= business costs rise, interest rates eradjust upward and profits are squeezed
New deal= money and credir growth constituted
The explosion in productivity undoubltely helped to keep prices lower than they would have otherwise been.
Fed’s higher interest rate
Phase 2
Unprecedented political bunling prolonged the misery 10 years
Hoover taxed too much, booting the national debt, choking off trade,
Leading countr to the path of socialism.
Smoot-hawley taridd- American agriculture in a tailspin during the preceding decade. Most protectionist legislation – fordney mccumber tariff
Jobless after the tariff on wool rags rose by 140 percent
Ignores international commerce- trade is ultimarely a two way street. Gvt cannot shut of imports without simyltanoustly shutting off exports
9,00 banks closed their doors between 1930-1933
keeping wages artificially high even though both profits and prices were falling
hoover increased fvt spending for subsify and relief schemes.
Phase 3
The new deal
Rooselvet won in 1932
25% reduction in federal sending, balanced federal budget, sound gold currency,
big difference to what he did actually.
New barriers of his own. Quantitative increases and qualitative deteriartion. Devalued the $ by 40%
Tyrannical oppressive, bureaucracy controlling our lives, destroying progress, depressing the standar of living, then should it not be the function of the fed gvt under the democracy to limits its activities to those which a democraxy may adequarly deal such for example as national defense, mantainling law and order, protecting life and property preventing dishoney and guarding the public against vested special intersts.
Comparison with Canada
Gold-paper dollars change ratio.
21=lucky number
it is breaking its promise to redeem its paper money in gold coinf of the present standard of value.
Rooselvet did return booze to america’s bars and parlor rooms.
National recovery act- 1933 new bureaucracy called the National Recovery Administration. Forced into gvt-mandated cartels. Nex taces on the very industires it controlled. 40% to boost the cost of doing business.
Industrial production dropped 25%. Antirevival measure.
Tailor’s code
Tax hikes became a favorite policy of rooselvet for the next 10 years. Culminating in a top icome tax rate at 90%
“nation-wide, state-managed mobilization of innae buffoonery and aimless commotion”
boondoggle
WPA.
Fired if not pauong 2% of their wages to the incumbent governor.
Easteful spending generated by these jobs programs represented a diversion of valuable resources to politically motivated and economically counterproductive purposes
Wealth is not created is diverted.
Unemployment dropped 30% 1936
50%1937
a depression within a depression
economic stimulus
pahse 4
wagner act
organized labor’s magna carta
aimed at crishing all emplouer resisteance to labor unions
threaths boycotts strikes seizures of plants and widespread violence pushede productivity down.
Whopping 99.5 percent margina rate on all incomes over 100,000$
Nations capital was diverted into the war effort nstead of into plnant expansion or consumer goods.
10 million americans were jobless 12 yrs after the s tock market crash
political bungling on a grand scale that produced 12 years of agonoy now the free market.
This time we have nothing to fear but myths and misconceptions
Capitalism and the free market economy was responsible for the great depression, and only gvt intervention brought about americas economic recovery.
Rooselvt steer the nation toward recovery.
Capitalism cannot be trusted, fbt needs to take an active role in the economy to save us from inevitable decline
Phases
Monetary policy and the business cycle
The desintegration of the world econonmy
The new deal
The wagner act
1. business cycle:
longest depression.
Political Mismanagment of the money and credit supply
Harmful interventions
Margin lending on stock exchanges, and margin requirement.
Margin requirement began to raise and borrrowers were required to pay a larger share of the purchase price of the stocks
Boom matures= business costs rise, interest rates eradjust upward and profits are squeezed
New deal= money and credir growth constituted
The explosion in productivity undoubltely helped to keep prices lower than they would have otherwise been.
Fed’s higher interest rate
Phase 2
Unprecedented political bunling prolonged the misery 10 years
Hoover taxed too much, booting the national debt, choking off trade,
Leading countr to the path of socialism.
Smoot-hawley taridd- American agriculture in a tailspin during the preceding decade. Most protectionist legislation – fordney mccumber tariff
Jobless after the tariff on wool rags rose by 140 percent
Ignores international commerce- trade is ultimarely a two way street. Gvt cannot shut of imports without simyltanoustly shutting off exports
9,00 banks closed their doors between 1930-1933
keeping wages artificially high even though both profits and prices were falling
hoover increased fvt spending for subsify and relief schemes.
Phase 3
The new deal
Rooselvet won in 1932
25% reduction in federal sending, balanced federal budget, sound gold currency,
big difference to what he did actually.
New barriers of his own. Quantitative increases and qualitative deteriartion. Devalued the $ by 40%
Tyrannical oppressive, bureaucracy controlling our lives, destroying progress, depressing the standar of living, then should it not be the function of the fed gvt under the democracy to limits its activities to those which a democraxy may adequarly deal such for example as national defense, mantainling law and order, protecting life and property preventing dishoney and guarding the public against vested special intersts.
Comparison with Canada
Gold-paper dollars change ratio.
21=lucky number
it is breaking its promise to redeem its paper money in gold coinf of the present standard of value.
Rooselvet did return booze to america’s bars and parlor rooms.
National recovery act- 1933 new bureaucracy called the National Recovery Administration. Forced into gvt-mandated cartels. Nex taces on the very industires it controlled. 40% to boost the cost of doing business.
Industrial production dropped 25%. Antirevival measure.
Tailor’s code
Tax hikes became a favorite policy of rooselvet for the next 10 years. Culminating in a top icome tax rate at 90%
“nation-wide, state-managed mobilization of innae buffoonery and aimless commotion”
boondoggle
WPA.
Fired if not pauong 2% of their wages to the incumbent governor.
Easteful spending generated by these jobs programs represented a diversion of valuable resources to politically motivated and economically counterproductive purposes
Wealth is not created is diverted.
Unemployment dropped 30% 1936
50%1937
a depression within a depression
economic stimulus
pahse 4
wagner act
organized labor’s magna carta
aimed at crishing all emplouer resisteance to labor unions
threaths boycotts strikes seizures of plants and widespread violence pushede productivity down.
Whopping 99.5 percent margina rate on all incomes over 100,000$
Nations capital was diverted into the war effort nstead of into plnant expansion or consumer goods.
10 million americans were jobless 12 yrs after the s tock market crash
political bungling on a grand scale that produced 12 years of agonoy now the free market.
This time we have nothing to fear but myths and misconceptions