Planet Money Summer School
History 7: The Great Depression, the New Deal and how it changed our economy
Aug 21, 2024
Delve into the transformative era of the Great Depression as it reshapes government and business relations. Discover the catastrophic stock market crash of 1929 and hear personal tales of struggle amid rampant unemployment. Learn how FDR's bold decisions shifted the economic landscape by dropping the gold standard, sparking confidence in banks. Explore the rise of labor unions through pivotal strikes and their lasting impact on wages and workforce empowerment. Finally, grasp the essence of fiat currency and Keynesian economics in modern financial stability.
35:29
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Quick takeaways
- The Great Depression was precipitated by consumer debt, wealth inequality, and a fragile market structure that culminated in the 1929 stock market crash.
- President Roosevelt's abandonment of the gold standard allowed for New Deal policies that successfully stimulated economic recovery through increased government spending and investment.
Deep dives
The Roots of the Great Depression
The Great Depression emerged from a confluence of factors, including rampant consumer and government debt, which accumulated during the 1920s economic boom. A significant issue was the prevailing economic philosophy of laissez-faire capitalism, advocating minimal government intervention in the economy, leading to unchecked financial practices. Additionally, wealth inequality created a fragile market structure, setting the stage for a collapse when the stock market began to fail in 1929. Consequently, these underlying problems, alongside an oversaturated market, coalesced to facilitate the onset of the worst economic crisis in modern history.
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