1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aivan3 [116]
2 years ago
9

Pls answer How does the description of the government's intervention in the Great Depression contribute to the development of id

eas in the text?

Social Studies
1 answer:
V125BC [204]2 years ago
7 0

Answer:

The Great Depression was caused by government intervention, above all a financial system controlled by America’s central bank, the Federal Reserve — & the interventionist policies of Hoover & FDR only made things worse.

The precise causes of the Great Depression remain a subject of debate, although, as economist Richard Timberlake observed n 2005, “Virtually all present-day economists... deny that a capitalist free-market economy n any way caused” it.

At the time, however, the free market was blamed, with much of the ire directed at bankers & speculators. Financiers were seen as having wrecked the economy through reckless speculation. President Hoover came to be viewed as a laissez-faire ideologue who did nothing while the economy fell deeper & deeper into depression, & Franklin D. Roosevelt’s interventionist policies under the New Deal were credited with rescuing us from disaster.

Americans came to conclude that the basic problem was the free market & the solution was government oversight & restraint of financiers & financial markets. It’s a view that the public, unaware of the consensus of modern economists, continues to embrace.

But the conventional story ignores the elephant n the room: the Federal Reserve. To place the blame for the Great Depression on a free financial system is like placing the blame for the fall of Rome on credit default swaps: you can’t fault something that didn’t exist. & by the time of the Great Depression, America’s financial system was controlled by the Fed.

It’s hard to overstate the importance of this fact. The Federal Reserve isn’t just any old government agency controlling any old industry. It controls the supply of money, & money plays a role n every economic transaction n the economy. If the government takes over the shoe industry, we might end up with nothing but Uggs & Crocs. But when the government messes with money, it can mess up the entire economy.

The two deadly monetary foes are inflation & deflation. We tend to think of inflation as generally rising prices & deflation as generally falling prices. But not all price inflation or price deflation is malignant — & not all price stability is benign. What matters is the relationship between the supply of money & the demand for money — between people’s desire to hold cash balances & the availability of cash.

Economic problems emerge when the supply of money does not match the demand for money, i.e., when there is what economists call monetary disequilibrium. Inflation, on this approach, refers to a situation where the supply of money is greater than the public’s demand to hold money balances at the current price level. Deflation refers to a situation where the supply of money is less than necessary to meet the public’s demand to hold money balances at the current price level.

N a free banking system, as George Selgin has argued, market forces work to keep inflation & deflation in check, i.e., there is a tendency toward monetary equilibrium. Not so when the government controls the money supply. Like all attempts at central planning, centrally planning an economy’s monetary system has to fail: a central bank has neither the knowledge nor the incentive to match the supply & demand for money. & so what we find when the government meddles n money are periods where the government creates far too much money (leading to price inflation or artificial booms & busts) or far too little money (leading to deflationary contractions).

& it turns out there are strong reasons to think that the Great Depression was mainly the result of the Federal Reserve making both mistakes.

The goal here is not to give a definitive, blow-by-blow account of the Depression. It’s to see in broad strokes the way in which government regulation was the sine qua non of the Depression. The free market didn’t fail: government intervention failed. The Great Depression doesn’t prove that the financial system needs regulation to ensure its stability — instead it reveals just how unstable the financial system can become when the government intervenes.

You might be interested in
Which of the following is an exclusive power of the national government? regulating interstate commerce holding elections establ
Yakvenalex [24]
The power to regulate interstate commerce is a power that is exclusively given to the American Government by the U.S. Constitution. The regulation of interstate commerce was a major issue during the times of the Articles of Confederation and was therefore an issue with the Constitutional Framers were sure to create in the new Constitution. 
3 0
3 years ago
Read 2 more answers
Introduce a new type of tobacco which helped the Jamestown colony in Virginia succeed
cluponka [151]

<u>John Rolfe</u> is the person who introduced a "new type" of tobacco which helped the Jamestown colony in Virginia succeed.

7 0
3 years ago
PLS HELP GUYS!! THIS IS WORTH 160 PTS!!!(PLUS I WILL MARK BRAINIEST WHEN SOMEONE ANSWERS CORRECTLY FIRST)
Nana76 [90]

Answer:

The answer is B!!!!!

Explanation:

6 0
2 years ago
Read 2 more answers
Put the events in the proper order. A Asoka converts to Buddhism due to suffering in Kalinga. B Asoka creates pillars to tell su
nataly862011 [7]

Answer:

The correct order is as follows:

1. Asoka struggles with brothers for the throne, then kills brothers and wins the throne.  

2. Asoka holds power, and then attacks Kalinga to extend the kingdom.

3. Asoka regrets bloodshed in Kalinga.

4. Asoka converts to Buddhism due to suffering in Kalinga.

5. Asoka creates pillars to tell subjects of three morals laws and makes the kingdom a better place to live.

Explanation:

To conquer the privileged position, Asoka executed his 99 siblings. However, from that point forward, Asoka changed over to Buddhism since he lamented of all slaughter during assaults in Kalinga, one of his battles.

Furthermore, as a Buddhist sovereign, he accepted that Buddhism is valuable for every single individual, so he assembled various laws to make the kingdom a superior spot to live.

7 0
3 years ago
Which of the following makes a true statement? The Constitution itself without its amendments contains no protections for indivi
Evgesh-ka [11]

Answer:

The Constitution limits the powers of governments as one way of securing individual rights.

Explanation:

This is the statement that is true. The Constitution did not include a lot of protections when it came to individual rights, which is one reason why the Bill of Rights was later included. However, it did contain some mechanisms that ensured the protection of these rights. One of these mechanisms was the limitation of the powers of governments. By limiting these powers, the Constitution ensured that the rights of individuals were not infringed upon by governments.

3 0
3 years ago
Read 2 more answers
Other questions:
  • A person's view of life's meaning, direction, purpose, and connectedness to other things, other people, and the past and future
    9·1 answer
  • Water flows straight down from an open faucet. The cross-sectional area of the faucet is 2.00 10-4 m2, and the speed of the wate
    13·1 answer
  • The Smiths tend to indulge their children, often allowing the children to make many decisions before they are ready. They are al
    10·1 answer
  • Group Communication Task-related Roles help a group achieve its goal, while group communication ___________ roles help manage re
    15·1 answer
  • Andy is an angry child whose aggressive behavior has gotten him into trouble.His parents decide to put him in sports to channel
    11·2 answers
  • The map above shows areas of support for the federalist and Anti-federalist after the constitutional convention of 1787. Based o
    13·2 answers
  • Why did the Roman Empire fall, You can give me multiple reasons.
    11·1 answer
  • The war with Mexico _________________
    6·2 answers
  • The third oldest urban civilization was in _____________ .
    12·1 answer
  • Question is this statement true or false? since industry is a western institution, it infuses the world with western culture.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!