The Indicator from Planet Money When Uncle Sam owned banks and factories
85 snips
Jul 23, 2025 Explore the intriguing intertwining of government and the economy, revealing how federal intervention has shaped America since the Great Depression. Discover the pivotal role of the Reconstruction Finance Corporation in stabilizing banks and industries during crises. Uncover the long-term impacts of this institution on the housing market and the advent of the 30-year mortgage. Delve into the moral dilemmas posed by government-backed loans and how these historical choices echo into today’s financial landscape.
AI Snips
Chapters
Books
Transcript
Episode notes
The Forgotten National Bank
- The U.S. had a national investment bank called the Reconstruction Finance Corporation (RFC) for 20 years.
- It was bipartisan and crucial for economic recovery during the Great Depression and war preparation.
Jesse Jones' Powerful Role
- Jesse Jones became a millionaire by 30 and was appointed by Hoover and Roosevelt to run the RFC.
- He was a man of many interests including media and public service, influential during the RFC's operation.
RFC Stabilized Banks Post-Holiday
- The RFC stabilized the banking system by recapitalizing banks after Roosevelt's bank holiday in 1933.
- It became a partial owner of half of U.S. banks by 1934, going beyond traditional central banking.
