HIST 2620 1nd Edition Lecture 20 Outline of Last Lecture I. KKKII. ImmigrationIII. ReligionIV. PoliticsOutline of Current Lecture II. Horatio AlgerIII. Stock market CrashIV. Great DepressionV. Three ResponsesCurrent LectureHoratio Alger -people started drinking again and going to the movies so they could escape their misery-popular movies: Gold Diggers, Little Caesar, I am a fugitive from a chain gang-U.S didn’t want to show movies from Horatio Alger because his stories were about the American dream, which is something everyone in America was trying to achieve but because no one was reaching any success people didn’t want to view movies about that topic-since the stock market was crashing no one believed in the American dream anymoreStock Market Crash -Charles Ponzi created a scheme that was taking on a debt to pay a debt, because of the booming market Americans said okay to the idea, he reached out to current investors to pay for the debt from the original investorsGreat Depression-unemployment went from 3% to 25%-industrial production decreased to 50%-investment economy dropped to 98%-middle class didn’t have purchasing power of economy to keep it going-businesses produced more productsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-wages weren’t keeping up with supply-1919 1% of the wealthy controlled 20% of income in nation-the problem was people weren’t spending their money correctly, they weren’t spending in ways to help the economy-globally, nations dealt with the same issue, Germany had to pay back Britain and France, so the U.S. gave Germany the loan, once Britain and France received their loan they paid the U.S. back for the supplying the war-the money went in circles-John Maynard Keynes wrote a book, Economic Consequences of Peace; his solution to the market crashing was to create jobs for every little thing, but the problem was how long was this going to last since the person creating the jobs wasn’t benefiting from it-they only had so much money to pay workers-to fix that problem the government would have to run a deficit to keep the economy going -President Hoover thought the country needed to be protectionist, Smoot Hawley tariff meaning we buy products within our own country to help the economy- no more trade with any other nations, problem with this solution is that it would hurt all of the nations in the long run because soon other nations will catch on to the same conceptThree Responses -Fascism: Germany, Italy, Japan turned to the option of fixing their military to get out of their depression, the problem was that they didn’t know what to do with a large group of military soldiers since there was no war, it was a success -Totalitarian Communism: Soviet Union wanted to stall land industries, collect agriculture, it would be controlled by the government, it work productively at the cost of 20 million dead, 20 million died because the government would collect their products and food but would not distribute it amongst the workers-Welfare Capitalism: France, Canada, Great Britain and Sweden decided to provide more government services, but tax the citizens more, the problem was that they were taxing the rich and dispersing it to the lower class, which created social issue between the upper class and middle class and the upper class didn’t like that their money was going to the
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