1 / 12

Legacy of the New Deal

Legacy of the New Deal. Immediate Effects of the Stock Market Crash. (Review…). Federal Reserve (“The Fed”) limited the amount of money in circulation Banks collapsed (pg 374) Businesses closed (pg 374) Unemployment skyrocketed (pg 375) Hawley-Smoot Tariff Act Depression went global

elie
Download Presentation

Legacy of the New Deal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Legacy of the New Deal

  2. Immediate Effects of the Stock Market Crash (Review…)

  3. Federal Reserve (“The Fed”) limited the amount of money in circulation • Banks collapsed (pg 374) • Businesses closed (pg 374) • Unemployment skyrocketed (pg 375) • Hawley-Smoot Tariff Act • Depression went global • Led to cycle of poverty and political instability

  4. Mid-range Effects of the Depression

  5. Distrust of government (Hoover) Rise of radicalism (socialism, communism, fascism) Violence Escapism in pop culture

  6. Shift from pro-business to anti-business Dislocation of families Uncertainty, despair Weakened U.S. foreign policy – no economic power

  7. Long Term Effects Legacy of the New Deal

  8. Old Ideas Going, But Not Gone Rugged individualism Laissez-faire Social Darwinism Trickle-down theory

  9. New Developments in the U.S. • Rise of centralized, powerful government • Democratic party as majority party (1930s-1990s) • New Deal Coalition – chart page 415 • Shift of power from Congress to the Presidency • Rise of labor unions

  10. Legacy of fear of banks and business Deficit spending by government (Keynesian) Creation of a welfare state – chart page 417 Renewal of faith in democracy Increased racism?

  11. Development of a Managed Economy Market Economy Vs. Managed Economy • Market Economy • Laissez-faire; capitalism • Market forces drive the economy (supply/demand; prices; wages) • Limited role of government – provide only for law and order • Business cycle is normal and will adjust itself

  12. Managed Economy • Keynesian • Govt. actively plans the economy • Regulation of stock market, banks, etc • Counter-cyclical spending (spend during a depression) • Taxes used to regulate the economy and redistribute the wealth

More Related