Brother, Can you Spare a Dime? Bing Crosby, 1932 They used to tell me I was building a dream And so I followed the mob. When there was earth to plow or guns to bear, I was always there, right on the job They used to tell me I was building a dream, With peace and glory ahead. Why should I be standing in line? Just waiting for bread? Once I built a railroad. I made it run, Made it race against time. Once I built a railroad. Now it s done Brother, can you spare a dime? Once I built a tower up to the sun, Brick and rivet and lime. Once I built a tower. Now it s done. Brother can you spare a dime? Once in khaki suits, Gee, we looked swell, Full of that Yankee doodley-dum. Half a million boots went slogging through hell, And I was the kid with the drum! Say don t you remember? They called me Al. It was Al all the time. Why don t you remember? I m your pal. Say, buddy, can you spare a dime?
Wednesday, March 14 th Essay #2 due at the START of labs on March 15th or 16th Remember to submit paper via blackboards Turn-It-In function before labs and hard copy at the start of labs. Failure to do both will result in a late penalty or not accepted at all. Don t forget to come into the American Heritage Review Room (173 A SWKT) for help on papers and concepts Open Lab Review on Saturday, March 17th from 10:00 am to 2:00 pm in 173A, 337, and 350 SWKT Midterm #2: March 20th 23rd Tuesday, March 20th, Wednesday, March 21st (NO FEE) Thursday, March 22nd -- $5 late fee Friday, March 23rd -- $7 late fee must have the test in hand by 11:00 am
Fighting the Machine Part II
The Great Depression
The Great Depression Possible causes of recession: Shocks to the Market System Overspending Drought Wealth gap Burst of stock bubble Runs on banks > bank failures
Consequences of the Great Depression Severe Economic Hardship
Economic Impact of the Great Depression 5000 bank failures 25% Unemployment (50% for African Americans: Last hired, first fired ) Stocks lost 75% of their value Over 1 million people lost their homes
Comparing Post-WWII Recessions
Comparing Post-WWII Recessions
Dorothea Lange photographs of the Great Depression
Drought and Dust Storms 75% of country impacted by drought by 1934 27 states severely affected Dust storms widespread > Dust bowl Black Blizzard of April, 1935
Consequences of the Great Depression Political Upheaval
The Election of 1932: Roosevelt defeats Hoover
Political Impact of the Great Depression 1928 Democrat Republican Popular Vote 15 million 21 million Electoral Vote 87 444 Senate 39 56 House 167 267 1937 Democrat Republican Popular Vote 23 million 16 million Electoral Vote 472 59 Senate 60 35 House 310 117
FDR s New Deal Tools: Leadership: Roosevelt as father figure Experts: the Brain Trust Bold experimentation: Willingness to try anything
New Deal Approaches The Visible Hand: Cartels National Recovery Act (NRA) Agricultural Adjustment Administration (AAA) Keynesian Economics
Keynesian Economics Priming the Pump Deficit spending during crisis Building up budget surplus during times of economic growth
New Deal Work Programs Civilian Conservation Corps (CCC) Federal Emergency Relief Administration (FERA) Public Works Administration (PWA) Works Progress Administration (WPA)
New Deal Economic Regulations Securities Exchange Commission (SEC) Regulate stock market National Labor Relations Board (NLRB) Mediate between workers and business Federal Deposit Insurance Corporation (FDIC) Guarantee bank deposits Fair Labor Standards Act Set minimum wage Social Security Unemployment, disability, retirement insurance
The Success of the New Deal Short-term relief (especially after start of WWII) Long-term protections/programs Social Security SEC (Securities and Exchange Commission) 9/11: SEC shut down stock market for a week
The Long-term Impact of the New Deal Increase in government regulation Reliance on deficit spending Growth of dependency, sense of entitlement, rights talk
Federal Budget as a Percentage of Gross Domestic Product (GDP) Progressive Era 1880 3% 1910 6% New Deal 1929 11% 1939 22% Civil Rights Era to Present 1960 28% 1980 37% 2009 45%
iclicker quiz: Should the government have intervened in our current financial crisis, the Great Recession? A) Yes B) No