How did the Great Depression Actually Happen?

00:11:41
https://www.youtube.com/watch?v=7jymtmw-xz0

Ringkasan

TLDRThe video highlights the transition from the Roaring Twenties' prosperity to the Great Depression in the United States, focusing on the stock market crash of 1929. Economic prosperity marked the twenties, but it led to over-investment and a bubble. In 1929, the market collapsed, starting with Black Thursday, when frantic selling ensued. The video explores factors like the Federal Reserve's policies, which some historians blame for the crash and the subsequent monetary contraction that worsened the depression. President Herbert Hoover's administration initially refrained from intervention, which some experts criticize. The Smoot-Hawley Tariff Act passed, intending to protect domestic industries, backfired and accelerated global trade retaliation. Franklin D. Roosevelt (FDR) took office in 1933, promising recovery through the New Deal, implementing policies to aid the impoverished and reform the financial system. His strategies included the creation of the Reconstruction Finance Corporation, notable for its attempts to stimulate the economy. However, the New Deal had mixed results, with critics claiming it prolonged the depression, while others praised its role in trust restoration. Ultimately, World War II is said to have ended the depression by boosting industry and employment, despite the complexities of wartime production and conscription affecting statistics. The video underscores that multiple factors, rather than a single cause or solution, characterized the economic crisis and recovery.

Takeaways

  • 📈 The Roaring Twenties were marked by economic prosperity and cultural change in the USA.
  • 📉 The 1929 stock market crash was a major trigger for the Great Depression.
  • 💵 The Federal Reserve's policies during the 1920s are blamed by some for the economic collapse.
  • 🛍️ The Smoot-Hawley Tariff Act worsened the depression by initiating trade wars.
  • 👨‍🏫 Herbert Hoover's belief in minimal government intervention was controversial.
  • 🚀 Franklin D. Roosevelt's New Deal aimed to recover the economy with various programs.
  • 📻 FDR's Fireside Chats were crucial for maintaining public moral during the economic crisis.
  • ⚔️ World War II significantly helped end the Great Depression with increased military production.
  • ⚖️ The role of the New Deal in ending the depression is debated among economists.
  • 🔄 Multiple factors were involved in both causing and resolving the Great Depression.

Garis waktu

  • 00:00:00 - 00:05:00

    The Roaring Twenties ended in a harsh economic downturn starting in 1928, with a minor stock market crash in the spring, followed by a more severe crash in the fall that led to Black Thursday and subsequently Black Tuesday. The Federal Reserve's decision to cut required reserves and allow monetary expansion is often blamed for the ensuing inflation and crash. President Hoover's lack of intervention and the Smoot-Hawley Tariff Act exacerbated the situation, leading to a severe economic decline, with millions unemployed and banks failing.

  • 00:05:00 - 00:11:41

    In 1933, Franklin D. Roosevelt was elected president, promising aid and solutions for the economic crisis. He implemented the New Deal, a series of programs aimed at recovery, regulation, and relief. Despite opposition, FDR moved the U.S. off the gold standard, though his efforts' success remains debated among historians. The end of the Great Depression is often attributed to World War II, which boosted economic activity despite mixed impacts on unemployment and quality of life. The precise causes and solutions of the Great Depression remain complex and multifaceted.

Peta Pikiran

Video Tanya Jawab

  • What era preceded the Great Depression in the USA?

    The Roaring Twenties preceded the Great Depression in the USA.

  • When did Black Thursday occur?

    Black Thursday occurred on October 24th, 1929.

  • What actions did the Federal Reserve take that are criticized in the video?

    The Federal Reserve cut required reserves to 3% and allowed for massive monetary expansion during the Roaring Twenties.

  • What was Herbert Hoover's initial response to the economic crisis?

    Herbert Hoover initially believed in minimal government intervention, hoping the crisis would resolve itself.

  • What was the Smoot-Hawley Tariff Act?

    The Smoot-Hawley Tariff Act imposed high tariffs on over 800 foreign products, aiming to protect the US economy.

  • Who became the US President in 1933?

    Franklin Delano Roosevelt became the US President in 1933.

  • What was Roosevelt's New Deal?

    Roosevelt's New Deal was a series of domestic policies and programs aimed at recovering the economy and public trust during the Great Depression.

  • What role did World War II play in the end of the Great Depression?

    World War II is credited with helping end the Great Depression due to increased GDP and lowered unemployment, although these figures are complicated by military conscription.

  • What was one major economic disagreement about the New Deal?

    Opinions differ on whether the New Deal helped end or prolonged the Great Depression.

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Gulir Otomatis:
  • 00:00:00
    The Roaring Twenties brought about an
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    era of bootleggers Flappers swinging
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    Jazz and economic prosperity
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    but what would follow arise other than a
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    dramatic and crushing fall
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    at the start of 1928 the end of the
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    Roaring Twenties the economy in the
  • 00:00:22
    United States was sitting pretty with
  • 00:00:24
    further progress on every Horizon Wall
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    Street admittedly saw a minor stock
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    market crash in the spring but things
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    quickly balanced back out and people
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    were happily ignoring any further signs
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    of trouble to come
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    by the Fall however the market seemed to
  • 00:00:43
    have reached its peak and started the
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    downhill Journey with mass numbers of
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    the American population having
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    increasingly been investing in the stock
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    market some people were finally starting
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    to pay a bit more attention to the
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    falling and volatile prices
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    stocks were being sold at a faster Pace
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    now and October brought about black
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    Thursday on the 24th the day that the
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    market crashed by 11 and Americans
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    frantically hoped to sell what they had
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    while they still could
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    over the following days the market
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    continued to plummet and panic was on a
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    chaotic rise
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    Monday October 28th would see a 12 drop
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    and the next day Black Tuesday would
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    mimic the Thursday before
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    Americans were losing money by the
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    millions and Trust in Wall Street was
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    all but non-existent corporate and
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    private wealth was affected by the
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    ongoing crisis which since the American
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    economy off the rails
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    now however many economists and
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    historians look beyond the chaos of Wall
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    Street itself and point the finger at
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    what the Federal Reserve did before the
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    actual crash
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    it was the Federal Reserve less than two
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    decades young that had cut required
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    reserves to only 3 percent and permitted
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    massive monetary expansion over the
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    Roaring Twenties experts say that it was
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    these actions that caused inflation and
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    the eventual crash of the stock market
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    which the FED reacted to by cutting the
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    money supply and essentially dooming
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    Banks across the country
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    thus when the winter of 1930 triggered a
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    new wave of Hysteria and startling Bank
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    runs hundreds of American Banks proved
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    unable to pay out and miserably
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    collapsed
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    the U.S government was hesitant to react
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    as president Herbert Hoover believed in
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    minimal government intervention and felt
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    that the situation could resolve itself
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    this stance would hold until the
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    following year but Congress had other
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    plans in fact Congress had already
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    reacted on June 17th the Smoot Hawley
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    Tariff Act had been passed with a goal
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    of protecting the United States economy
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    by imposing colossal duties and over 800
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    foreign products this decision by
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    Congress would prove to be one of the
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    most catastrophic attempts at stunting
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    the depression
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    quite frankly only accelerated it
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    dozens of countries already affected by
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    the consequences of America's economic
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    collapse seeping out from its own
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    borders chose to retaliate
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    working with the American tariffs to
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    effectively slash Foreign imports and
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    exports in the United States
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    as the Depression was only worsening now
  • 00:03:51
    Herbert Hoover finally chose to react
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    seeing that the situation wouldn't be
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    turning itself around anytime soon
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    President Hoover subsequently made
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    multiple decisions that he believed
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    would put the economy on a better track
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    such as implementing increased taxes and
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    increasing federal spending by nearly 50
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    percent which also brought about the
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    creation of the Reconstruction Finance
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    Corporation
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    this being meant to provide loans to
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    struggling Banks Hoover was hoping to
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    give the economy a bit of a Kickstart
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    and the stability to keep prices High
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    which in turn would keep wages from
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    dropping but this meant little to the 15
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    million or so unemployed Americans and
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    the growing thousands of closed Banks
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    across the country people were growing
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    hungry homeless and angry with their
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    government's failures it then comes as
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    no surprise that when the next
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    presidential election rolled around a
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    new face was elected to solve America's
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    ballooning problem
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    in 1933 Franklin Delano Roosevelt won
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    the presidential election in a landslide
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    Franklin Roosevelt dubbed FDR had run
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    his campaign on promises to provide aid
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    for the impoverished American people and
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    find a new solution for the nation to
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    crawl its way triumphantly out of the
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    Great Depression his inaugural address
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    after the sweeping election Victory
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    would become widely remembered for his
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    famous quote the only thing we have to
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    fear is fear itself and it was this
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    attitude that would follow him
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    throughout his efforts to recover the
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    economy and public Trust
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    FDR's calm and in control attitude would
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    serve a much needed purpose during a
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    time of such panic and he would utilize
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    this facts through his live radio talks
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    that would become known as his Fireside
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    Chats his goal with these talks was to
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    keep the American public in the loop on
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    everything that he and Congress were up
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    to and how they planned to act
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    particularly there was an important
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    focus on Roosevelt's New Deal
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    the New Deal was a string of domestic
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    policies and programs with which the
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    president promised to take a method and
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    try it if it fails admit it frankly and
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    try another it was a reassurance to the
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    American people that something was going
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    to be done and things would keep being
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    done until the problem was solved
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    but this required a drastic increase in
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    government interference which some today
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    still view as problematic nevertheless
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    it was what FDR opted to do in the
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    initial period deems the first hundred
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    days Congress got to Quick work passing
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    new laws and programs including the
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    Federal Emergency Relief act the
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    agricultural adjustment act the
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    Securities and Exchange Commission the
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    Civilian Conservation Corps and the
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    National Recovery Act amusingly shortens
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    to the NRA these actions were focused on
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    boosting the economy by supporting
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    programs for the poor providing
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    government subsidies to Farmers as a way
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    of increasing prices regulating the
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    stock market providing more young
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    workers with government jobs and
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    controlling prices wages and unions
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    these moves seemed promising but they
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    were only the start of FDR's ambitious
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    plans later efforts in the second wave
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    of the new deal would include the Wagner
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    labor relations act the fair labor
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    standards act the work progress
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    administration and famously this Social
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    Security Act
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    with these acts mainly focused on
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    getting the workforce back out there and
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    protecting the employed the Roosevelt
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    administration was both pushing to a
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    better economy whilst also aiding the
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    American people in doing their part
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    the problem with this new deal however
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    was that the Supreme Court often opposed
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    it by 1937 FDR was growing fed up with
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    the resistance to his ideas and he
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    looked to fix that by packing the
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    Supreme Court
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    this faulty conclusion turns much of the
  • 00:08:34
    public against Roosevelt and Congress
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    proved unable to make it happen
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    regardless many economic historians
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    doubt that Roosevelts would have
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    resolved the depression anyway even if
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    the opposition to his ideas had been
  • 00:08:49
    dealt with some go as far to say that
  • 00:08:52
    FDR did no better than Hoover he simply
  • 00:08:56
    made the same changes on a larger scale
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    one big difference however was the move
  • 00:09:02
    by FDR to remove the United States from
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    the gold standard which thus far had
  • 00:09:09
    impacted the economic Downfall by
  • 00:09:12
    slowing export demands
  • 00:09:15
    still one study by economists at the
  • 00:09:18
    University of California found that
  • 00:09:20
    Roosevelt's New Deal actually lengthened
  • 00:09:23
    the Great Depression by nearly a decade
  • 00:09:26
    however many will heatedly debate that
  • 00:09:29
    it was FDR and the New Deal that
  • 00:09:32
    actually put an end to the country's
  • 00:09:34
    economic woes and quite a few economists
  • 00:09:38
    are part of this group
  • 00:09:40
    whether the New Deal thus worsened or
  • 00:09:43
    ended the depression is not known for a
  • 00:09:45
    fact even today
  • 00:09:47
    but one thing that numerous agree was
  • 00:09:50
    the final boost America needed to get
  • 00:09:53
    out
  • 00:09:53
    that was World War II
  • 00:09:57
    if the GDP and lowered unemployment are
  • 00:10:00
    to be the metric it's asserted that the
  • 00:10:03
    Great Depression had come to a complete
  • 00:10:05
    End by 1942.
  • 00:10:08
    unemployment though is a bit tricky to
  • 00:10:11
    judge when 16 million Americans were
  • 00:10:13
    suddenly called upon to fight in the
  • 00:10:16
    global Warfare
  • 00:10:18
    so while international trade and certain
  • 00:10:21
    demands saw an increase throughout the
  • 00:10:23
    fight private sector production dropped
  • 00:10:26
    by around 50 percent taxes spiked and
  • 00:10:29
    the general quality of life was on a
  • 00:10:32
    decline
  • 00:10:34
    it really wasn't until after the second
  • 00:10:37
    world war concluded that a true light at
  • 00:10:40
    the end of the tunnel could be seen and
  • 00:10:42
    reached but this nevertheless leads many
  • 00:10:46
    to credit the war for the resolution
  • 00:10:49
    even today we can't pin down one
  • 00:10:53
    specific act or event that ended
  • 00:10:55
    America's greatest economic collapse we
  • 00:10:59
    also can't say for certain what caused
  • 00:11:01
    it the stock market crash smooth Hawley
  • 00:11:04
    tariffs and even the gold standard can
  • 00:11:07
    be attributed as having an effect on the
  • 00:11:09
    downhill Sprints the U.S economy took
  • 00:11:11
    towards the depression but it's not
  • 00:11:14
    possible to blame just one or even to
  • 00:11:17
    blame only those factors doing so would
  • 00:11:21
    be no different than claiming that World
  • 00:11:23
    War II resolved the crisis it's just not
  • 00:11:28
    that simple
  • 00:11:32
    foreign
Tags
  • Roaring Twenties
  • Great Depression
  • Stock Market Crash
  • Federal Reserve
  • New Deal
  • World War II
  • Economic Policies
  • Herbert Hoover
  • Franklin D. Roosevelt
  • Smoot-Hawley Tariff