A Short History of the Great Depression
By JANE ZIEGELMAN and ANDREW COE
The Federal Reserve System, which Congress established in 1913, is the nation's central bank, authorized to issue the notes that create our . The "Fed" indirectly sets interest rates because it loans money, at a , to commercial banks.
In 1928 and 1929, the Fed raised interest rates to try to curb Wall Street speculation, otherwise known as a "bubble." Economist Brad DeLong believes the Fed "overdid it" and brought on a recession. Moreover, the Fed then sat on its hands: "The Federal Reserve did not use open market operations to keep the money supply from falling.... [a move] approved by the most eminent economists."
There was not yet a "too big to fail" mentality at the public policy level.
By LIZ ALDERMAN, LARRY BUCHANAN, EDUARDO PORTER and KARL RUSSELL
The presidential campaign of 1932 was run against the backdrop of the Depression. Franklin Delano Roosevelt won the Democratic nomination and campaigned on a platform of attention to “the forgotten man at the bottom of the economic pyramid.” Hoover continued to insist it was not the government’s job to address the growing social crisis. Roosevelt won in a landslide. He took office on March 4, 1933, with the declaration that “the only thing we have to fear is fear itself.”
Overproduction and Over-expansion
In 1835, a year after a huge fire that had destroyed both Houses of Parliament, a committee of MPs was established to appoint someone to be in charge of the Ventilation, Warming and Transmission of Sound in a new government building.
Factory owners started to lay off workers
There had been constant complaints about the lack of ventilation in the old building, and several attempts to remedy this had met with very little success.
Canada’s Dependence on a Few Primary Products
To the left of this space was a series of smaller rooms, in which Reid conducted experiments to try to establish the amount of fresh air required for comfort and wellbeing.