The Greag Depression (1929-1934) Flashcards
Federal Reserve Board
Prints money (legally) Control supply Control interest rate(discount rate-charged banks)
Who is responsible for the economy
Federal Reserve Board
The president
What did the Federal Reserve Board do?
They raised the interest rate and tightened the money supply
(the higher the interest rate the less people borrowed from banks)
What the Federal Reserve Board should have done
Lowered interest rates to encourage people to put money in banks
What does printing less money do
It increases the value of the money and encourages millionaire to spend more
President Herbert Hoovar
Republican president
Inherited economic mess
Does too little too late
Cut taxes only tor rich and not for M.C
Trickle down Economics
The thought that of they gave more money to the rich they would spend it more wisely and the effect would Trickle down
*hoover believed if you helped the unemployed you ruin democracy
Election 1932
Franklin D. Roosevelt vs Herbert Hoover
How does Roosevelt win?
Though he never laid out a plan of what he would do he was safe because everyone blamed Hoover for the economic mess (hoovervilles) and the people would vote for anyone but hoover
Ways to end recession/depression
1) déficit spending
2) Tax cuts
3) Economic planning
4) Federal Reserve Board cab increase money supply (lowering I.R)
Defecit spending program 1933-1942
Government creating jobs
Works progress administration (WPA)
Civilian Conservation Corps(CCC)
Works Progress Administration (WPA)
Built highways and roads buildings and bridges and airports
Employed men to carry out public works
Employed more people than any other program
Civilian Conservation Corps (CCC)
Environmental
Run by the army to build army bases
Men worked in conserving for a year
Was Roosevelt a lib or con.
He was a conservative and didn’t solve all problems
What took us out of the recession
Defecit spending did
