2. Attended Harvard and Colombia

The US economy had experienced rapid economic growth and financial excess inthe late 1920s, and initially the economic downturn was seen as simply part ofthe boom-bust-boom cycle. Unexpectedly, however, output continued to fall forthree and a half years, by which time half of the population wasindesperate circumstances (map1).It also became clear that there had beenserious over-production in agriculture, leading to falling prices and a risingdebt among farmers. At the same time there was a major banking crisis, includingthe "Wall Street Crash" in October 1929. The situation was aggravatedby serious policy mistakes of the Federal Reserve Board, which led to a fall inmoney supply and further contraction of the economy.

3. Lawyer then active in NY politics

4. 1912 - Assistant Sec. Of Navy

5. 1918 Narrowly won Governorship of NY,

Another story goes like this. France was already ahead of the game, or further along an economic development trajectory, when it set its exchange rate following the first world war. Entrepreneurs really didn't have many opportunities to improve resource organization, so extending credit to them would not have increased productivity. It would only have increased inflation in France by dragging productivity down. Other banking systems needed to extend credit anyway, leveraging (and thus risking) their gold reserves more, but they didn't, because they were more concerned with protecting established proprietors than with catching up with the French. The French presumably told this story at the time.

6. 1920 - VP Candidate with James A. Cox

The Great Depression and world turmoil lead to upheaval in world governments. Dictators begin to take over. The rise of dictators leads to greed and evil. World War II introduces a whole new pain into the world in the largest and deadliest war ever seen.

A. What did Roosevelt mean by relief, recovery andreform?

PowerPoint " World War II Part 1"

As well, on a microeconomic scale there were many dumb decisions being made both in the 20's and now (e.g loans to people who couldn't pay if the stock market crashed or mortgages to people without proof of income). I'm curious, are the bad marcroeconomic decisions sufficient cause for a crash or do there also have to be concurrent microeconomic abnormalities? Or do you think the macroeconomic policies lead to poor microeconomic decision making? For example, the downward pressure on bond interest rates could result in the perceived need to take greater risks by financial institutions.

PowerPoint "World War II Part 2"

Outstanding podcast!! I too am wondering if Professors Irwin and Roberts see parallels with China and France. I remember Greenspan (and I hope I'm reflecting his comments accurately) stated that there were considerable downward pressures on bonds as a result of a large influx of investment dollars from China. In the 20's France's policies led the rest of the world to follow contractionary policies. However, Greenspan did not follow a contractionary policy and has been criticized for not. Does the experience of the 20's mean the outcome would have been the same for us even if Greenspan had raised interest rates....(I'm a Greenspan fan and am skeptical of his ability to have prevented the meltdown)?

1. Relief - Immediate action taken to halt theeconomies deterioration.

Links for Federalist/Anti-Federalist project:

Certainly productivity isn’t only improved through technological innovation--- trade with poorer countries improves productivity due to comparative advantage.

2. Recovery - "Pump - Priming" Temporary programs to restart theflow of consumer demand.

B. What was Roosevelt's underlying philosophy?

As we have seen the Great Depression had a devastating impact onthe American economy and the American people. President Hooverbelieved, basically, in waiting things out. As result of Hooversinactivity America turned to a new, dynamic leader: Franklin DelanoRoosevelt. Today we will discuss his basic strategy for improving theeconomy.

-Harry Hopkins - Social Worker and the architect ofmuch of the New Deal.

D. What did Roosevelt mean by relief, recovery and reform?

Which is all fine but it just goes and stirs up the supply-side covey again and makes them again have hope that somebody will pay attention to their gold standard fantasies. Best to let sleeping dogs lie and concentrate on real solutions for the dismal future we face.