History 1807 Study Guide - Final Guide: Franklin D. Roosevelt, Nixon Shock, Making Money
5 Apr 2016
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The great depression: throughout the 19th century, the wealthy used the stock market. The economy was basically unsound for many reasons such as protectionism, high trade barrier, tightened liquidity, high price level and high wage level. More people start to use the stock market, as there was greater availability of money this leads to bank failures as people had borrowed money, when they started losing in the stock market, they would lose everything. Industrial over-producivity and declining demand, unequal distribuion of wealth. John maynard keynes: the most important economist since adam smith, depression was prolonged by the absence of investment, which was itself the result of the absence of savings in the economy. Franklin delano roosevelt and the new deal (glass-steagall act (1933): separates commercial and investment banking) Ww2 is what ended depression, as it gave everyone a job, people had money to spend and there was the circulaion of money/ simulant and jolt in the economy.
