FDR The Economy
- Created by: lauraghita
- Created on: 28-09-17 20:34
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- The Economy
- America 1945- a lot of regulations + social security
- "the only properly solvent nation in the world"
- Growth in immigration
- Emergency Quota Act 1921 - limited annual immigration from any country to 3%
- The 1924 National Origins Act reduced it to 2% - total number of immigrants limited to 150000 people; Japanese banned
- Americans worried that there will be no jobs for these immigrants- turning communists - stir up revolution
- Emergency Quota Act 1921 - limited annual immigration from any country to 3%
- Boom to bust and recovery
- 1920s - laissez-fair approach; 1930s - certain stabilisation; 1940s - recovery (entering WW2)
- 1929- 27 million people had cars; one fifth of the population; 1 in 5 families owned a car
- Jobs for people; stimulated oil, rubber, steel and glass; encouraged road building
- 1929 - 3.7 million people working in auto industry; spent $2.6 billion on new/used cars
- Jobs for people; stimulated oil, rubber, steel and glass; encouraged road building
- Depression + Wall Street Crash
- 500 banks failed; unemployment reached 12 million (25%-1932)
- Capital for business growth dropped by 90% (1929-1933)
- 1936 - unemployment reached 9 million ("living wage" by Huey Long = $2500)
- The richest 5% had a third of the income; the poorest 70% struggled
- Structural weaknesses
- Faming; rural farmers - higher prices ; industrial workers - lower prices
- American encouraged to overproduced leading to the AAA 1933
- There was demand for food but no money to pay for it
- Roosevelt : 1-farmers to produce less(AAA); 2-provide infrastructure to reduce transport costs(PWA); 3-people had money to buy food(alphabet agencies)
- FRD took America of the gold standard 1933 to drive up prices
- 1940 the national debt was $45 billion
- WW2 - useful stimulus
- 10 million Americans signed in for the army - solved unemployment
- Agriculture surplus sent to Britain, USSR and France
- Steel production 20% (up),prices 28% and earning up to 40%
- Faming; rural farmers - higher prices ; industrial workers - lower prices
- America 1945- a lot of regulations + social security
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