Federal securities act banking act of 1933 the fsa

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Unformatted text preview: e market. Reconstruction Finance Corporation – Theoretically, through lending money to groups at the top of the economy, the RFC was going to help people all over (filter-down system), but it didn’t work. - But on the other hand, there was the Hawley-Smoot Tariff (1930) i.e. one of the biggest mistakes ever, as it raised tariffs ultra high and therefore totally killed off foreign trade. To balance the budget, Hoover then decreased expenditures and increased taxes (Revenue Act of 1932). Wow, somebody slap him! - The basic problem was this: Hoover was too much of a traditionalist to give up the balanced budget idea (he vetoed a bunch of relief bills for this reason, and he also refused to repeal Prohibition). But as far as he could w/o giving that up, he did try to reform, so he can be thought of as a bridge between the 20s and FDR. 202 *The Presidential Election of 1932* - The Republicans ran Hoover, e/t he was pretty much screwed due to his poor leadership abilities (no inspiring speeches and such), while the Democrats picked New York Governor Franklin Delano Roosevelt, who supported direct relief payments for the unemployed and extensive public works as governor. - In order to find a good platform, Roosevelt gathered a “Brain Trust” of lawyers and university professors. Together, they decided that the gov’t had to regulate business and restore purchasing power to the masses by cutting production, which would lead to rising prices and rising wages (“economics of scarcity”). - But Roosevelt also believed in direct unemployment relief and repealing prohibition, which, when combined with the whole Bonus Army debacle in 1932 (where WWI vets marched to Washington to ask for their pensions and had the army turn on them), led to a landslide victory for him. *FDR’s First Term: The First Hundred Days and the New Deal* - So, other than proclaim that we have nothing to fear but fear itself (in FDR’s inaugural address), which helped people stop freaking out, what the heck did FD...
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