PPD 227 Lecture Notes - Lecture 4: Economic Rent, Stock Market, Mortgage Insurance
8 Sep 2016
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Document Summary
The great depression- background: extreme economic contraction, stock market crashed and continued for 10 or 12 years, preceded by a crash in the agricultural sector. Produced more food than needed and brought prices down. Few homes had electricity or plumbing, conditions abysmal, helped precipitate an economic downturn of dramatic proportion. Government intervention may have helped precipitated as well. Housing market disappeared both in production of new housing and sale and transfer of existing housing. Banks closed their doors, depositors lost billions of dollars, economically and socially dreadful time. Civic debate,- the great depression caused serious doubts about capitalism, ability to survive on sustained basis, money or goods that people wanted. This climate gave permission to accelerated and expanded government permission. Roosevelt took advantage and extended power and authority in the interest of the population, wanted to create social security, work programs, mortgage insurance, and in general, tinkering with the unfederaled market.
