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The New Deal. The fight against the crisis. - Contenido educativo

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Subido el 5 de enero de 2024 por Luis H.

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Hello class, today I'm going to explain the different proposals for a solution to the economic crisis in 1929. 00:00:01
Because when the crisis emerged, almost each country tried to solve the crisis by its own method. 00:00:09
For instance, some countries in Western Europe promoted the autarchy policy in terms of the economy, 00:00:18
which was a self-sufficient economy, una economía autosuficiente, 00:00:27
which tried to live only with the domestic resources of a country. 00:00:34
So, as a consequence, they tried to limit the imports, 00:00:41
the products that you buy abroad, as much as possible. 00:00:48
Mussolini in Italy, Hitler in Germany, and even Franco in Spain were in favor of this policy, but Germany, Italy, and Spain didn't have as much raw materials, key materials, as other countries in the world, such as the United States, the Soviet Union, or even Great Britain. 00:00:53
For example, Germany didn't have as much coal and oil, which were important raw materials, as Great Britain, and for this reason they were not able to live only with their domestic resources, and this policy ended in failure. 00:01:20
Actually, this policy ended in failure also because the vast majority of the countries adopted the ideas from John Maynard Keynes. 00:01:43
Who was Keynes? Keynes was a brilliant economist from Great Britain, from Cambridge University, and Keynes was in favor of the state intervention of the economy. 00:01:57
He thought that if the state would invest more money in key sectors of the economy, such as public works, obras públicas, or in the industry, or even agriculture, there will be more jobs. 00:02:11
And if the level of unemployment in a country increased, workers would consume more. 00:02:31
And this is the idea that Keynes tried to get. 00:02:41
It was a solution because the economy would recover. 00:02:46
When President Roosevelt became the president in the United States in 1933, 00:02:52
he implemented the ideas from John Maynard Keynes in his political and economical program which was 00:02:59
the New Deal. Now I'm going to explain the New Deal which contained different ideas, different 00:03:09
solutions from John Maynard Keynes. For example, Roosevelt was in favor of the regulation of the 00:03:18
banks. He forced them to give loans with a low interest rate to the common people. And in 00:03:26
exchange for that, the banks got money, funds, also money from the state, because remember that 00:03:37
the vast majority of them were in crisis due to the economic situation in 1929. This is actually 00:03:46
the end of the speculation of Wall Street because the government in the United States 00:03:56
increased its own supervision over the banks. Actually, the state in the United States, 00:04:03
Roosevelt, guaranteed the deposits for the people, for the industries, and also for the farmers 00:04:14
in exchange for more controls over the banks. 00:04:23
In the end, Roosevelt even rolled out an investigation against Wall Street. 00:04:28
Rollout means, it's a phrasal verb that explains that the state gave the order to control the banks. 00:04:37
they gave the order to investigate Wall Street 00:04:48
and the person in charge was perfect. 00:04:53
The person in charge of this investigation was Joe Kennedy, 00:04:58
one of the Roosevelt friends, 00:05:03
and actually he will be in the future 00:05:06
Kennedy's father, I mean the president in the 60s, 00:05:12
And Joe Kennedy was perfect for this job 00:05:20
because he earned a lot of money before the crisis 00:05:24
and he knew perfectly well how Wall Street works 00:05:28
for the reason the investigation was successful. 00:05:34
Roosevelt also gave subsidies, money to the landowners 00:05:41
and to the industrial businesses 00:05:47
in order to limit their production. 00:05:49
Because if the farmers and also the owners of the companies 00:05:54
produced a lot of products without control, 00:05:58
they would produce more offer than demand. 00:06:02
And as a consequence of that, there will be a decrease in the prices 00:06:07
and also in the profits, which was really bad, 00:06:11
not only for the owners of the companies, but also for the economy. 00:06:16
Roosevelt reduced also the working hours, because before the crisis, 00:06:23
there was no limit to the number of working hours. 00:06:29
But as there was a lack of jobs, Roosevelt thought, 00:06:34
due to these ideas from John Maynard Keynes, 00:06:40
that it was better due to the lack of jobs to serve the jobs. 00:06:45
And for this reason, workers began to reduce the number of working hours 00:06:53
so as to get more jobs, so as to serve the jobs in the market. 00:07:01
And Roosevelt, as a consequence of that, implemented the eight-hour workday. 00:07:08
Also, Roosevelt gave a package in order to protect the workers. 00:07:15
He set up the minimum wage, the salario mínimo, the minimum wage, and also the unemployment insurance, just in case workers would lose their jobs. 00:07:24
So, in general, broadly speaking, he gave more protection to the workers. 00:07:37
So, what do you think, after hearing all of these measures, what do you think? 00:07:46
If we look at the Wall Street crash in 1929, do you think that history will repeat itself in the future? 00:07:52
Let me tell you a short story. 00:08:01
In 1973, this man, Frederick Hayek, got the Nobel Prize, and he was also a prestigious economist, an Austrian prestigious economist, and Hayek was completely, completely against John Maynard Keynes. 00:08:04
Actually, Hayek was in favor of the deregulation of the economy 00:08:32
because he thought that the state should not intervene in the market, 00:08:37
in the economy, because the market works perfectly well itself. 00:08:44
So as a consequence of that, many, many states brought, 00:08:53
They got the ideas from Frederick Hayek, and they began to dismantle the mechanisms of control of the economy and the companies. 00:08:59
Several important political figures at that moment, such as Margaret Thatcher in Great Britain and also Ronald Reagan, began to dismantle the mechanisms of control of the economy. 00:09:15
They stopped controlling Wall Street and also other important markets in the world. 00:09:34
the wall, they turn a blind eye to the mechanisms of control, and as a consequence of that, 00:09:43
the crisis, a new crisis, emerged in 2007, and the origin was again Wall Street. 00:09:53
So, what do you think? Should the state, after hearing this lesson, what do you think? Should 00:10:04
the state control the economy or not? 00:10:11
They should. Do you think that the state should control 00:10:15
the market or not? We will see this important 00:10:18
debate in class. Thank you for your attention and 00:10:23
bye bye. 00:10:27
Autor/es:
Luis Horrillo Sánchez
Subido por:
Luis H.
Licencia:
Dominio público
Visualizaciones:
210
Fecha:
5 de enero de 2024 - 12:56
Visibilidad:
Público
Centro:
IES CERVANTES
Duración:
10′ 35″
Relación de aspecto:
1.83:1
Resolución:
3840x2100 píxeles
Tamaño:
29.62 MBytes

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