Groups presented.
4.What long lasting impact did the GD have on the US and the World?
America:
- FDIC (Federal Deposit Insurance Corporation)- created by congress; started after the GD to make sure that the people's money would be safe if the banks failed again; started after the Glass-Steagall Act in 1933; 6 values: 1. integrity 2. competence 3. teamwork 4. effectiveness 5. accountability 6. fairness; allowed people to be able to put no more than 250,000 in the bank (you could put more than that in but only that amount will be insured); still around today; independent agency prohibited banks from paying interest on checking accounts; started out at 150,000
- SEC: regulates the buying and selling; sustain a growing economy that produces jobs, and improves living standards; strives to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation; had the power to license and regulate stock exchanges; was to regulate the stock market and prevent in proper gain of benefit or made sure nobody was doing anything illegal with the stock market; stock pool- wealthy people would pool their money on a stock, buying on a margin- borrowing to buy stocks, stock watering- an asset with an artificially-inflated value: all of these taking place in the 1920s; goal is stock value=company value; to make sure stocks don't skyrocket out of control
- Social Security System (1935)- federal program of social insurance with benefits; part of Roosevelt's New Deal; (puts money into) benefits then: retirement income, disability income, dependent children, unemployment (kind of like welfare); benefits now: retirement, survivors and death benefits, disability, medicare
- Welfare- started out British Poor Laws: Migrant workers, people who were committing crimes, elderly, children; GD: grants (just given to you; don't have to pay back) to groups; 1996- Personal Responsibility and Work Opportunity Reconciliation: you can't just give money to the unemployed if they aren't trying, you have to show that you tried to get a job at least; more regulations.
- Speculation between 2003-2007; Generation of Fear: people who are scared to trust banks because of GD and how they could lose their money again
World:
- Employment: rate increased dramatically almost everywhere; US at 25%; schools, firefighters, police, etc. were a lot less common
- Germany- had to pay off a lot of war debts; Weimars Republic was effected a lot by the GD; WWI ended the Treaty of Versailles took away Germany's colonies and forced the country to pay $33 billion to Britain and France; Hitler rose to power because he could pretty much get people to do whatever he wanted
- France- lots of rioting; after WWI, lots of reconstruction but then GD hit; a lot of money made from tourists but no one had money to travel; rise of socialist group called the Popular Front; unemployment went up to 15%
- United Kingdom- Unemployment doubled to 2.5 million people; one of the worst effected by the GD; a lot of cities and towns unemployment reached 70% with a high of 90%; affected by this because Britain relied on exports from other countries and very industrial
- Treaty of Versailles- made Germans slaves to the economy; inflation and unemployment got out of control; Nazis got very popular because Hitler could promise people money and jobs.
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