Why would the United States break from the Gold Standard in 1933 . In 1944, World Leaders designed a blueprint for a new International Monetary order a an dependent upon the strength of the american dollar. What led to the collapse of the heralded Bretton Woods agreements . 2002 a new cuencywent into circulation in 12 countries of the European Union. Would the w eu challenge the dollar as the worlds reigng currency . In a global marketplace, our economy depends on the International Value of the dollar. It affects how much weay for foreign goods and w we our exports sell overseas. Xcnge ras what ithe wo isolr wowithhe helofcomics analyst richard gill welexamine that questio onhis edition of economics u a. Im davischoumacher. It is only in recent years at excnge scould ry from y toay. Generaons, exchangeates were fixedancuencies freelycoertie ol to cast aside the edictability of the fixed Exchange Rate systemwas coidered moren unusua it was nearly unthinkae. Why enin 1933, woule uniteds
The fed was left to fight e resulting inflation alone. The nations central bank, originally created to protect the Banking System against panics, acquired more power to affect the economy than even it imagined at theutset. The Federal Reserve does money matter . With the help of economic analyst richard gill, well explore that question on economics usa. Im david schoumacher. Coins, bills, checks our basic money supply. The amount of money and where it goes wiin the banking sysm has en the main concern of our nations central ba. At t feds heauarters here in washington, dc, closedeliberatio are held bs who continuously monitorourh and prescribe remedies. How did these experts prescribe a remedy that plunged us even deeper in the Great Depression . Early in the0th century, american banks operated with little regulation and great vulnerability. In 1907, that vulnerability became apparent when depositors lost confince shorttermoa,tir money. E nkt and many colpsed. It took a powerful bankenf
And inflation was also at a 30year low. Did that mean inflation was dead . During the 1970s the American Dream threatened to become the american nightmare. For the first time, we were faced with skyrocketing prices and exploding unemployment. Stagflation why couldnt we beat it . With economic analyst richard gill well explore that question on this edition of economics usa. Im david schoumacher. Schoumacher since the passage of the employment act in 1946, it has been accepted policy for the government to fight unemployment by stimulating total demand. Often, inflation resulted. When that happened the government shifted gears and clamped down on demand in order to decrease inflation. For five administrations the government more or less successfully practiced the delicate art of balancing off unemployment and inflation. The experience of the 1950s and 1960s indicated that when unemployment went up, inflation would, correspondingly, fall. By the time Richard Nixon was in office, though, th
Can Less Government lead to more proctivity . Productivity growth is a crucial but almost invisible element in our economic wellbeing, something we take for granted until it slows down. That happened in the 1970s. We had a blizzard of suggestions for dealing with productivity. How do we get more for less . With the help of analyst richard gill, well examine that question on economics usa. Im david schoumacher. Captioning made possible by the Annenberg Cpb project economists see the world in terms of supply and demand. Put simply, demand is the appetite to consume. Supply is the ability to produce. Productivity holds the supply side together. As long as productivity continues to improve, our standard of living continues to improve. This is the classic widget factory. This machine will put the stick in a deodorant tube. It if works, well have more deodorant and fewer hours of work putting tubes together. Thats productivity. American productivity has been an economic marvel of the industr
What would the government do with the money . Almost every year the federal government spends more money than it takes in. Year after year, the tide of red ink rolls on. Federal deficits can we live with them . Well investigate that question with the help of economic analyst richard gill on this edition of economics u a. Im david schoumacher. Most of us have been taught that to spend more money than we earn is to Court Financial disaster but the federal government seems to play by a different set of rules. Almost every year the country runs a deficit. Yet were told that deficit is necessary, even beneficial. But deficits piled one on top of another create a growing National Debt. And the Interest Payments on that debt add more dollars to the next years deficit. During a fiveyear span back in the 1940s, our National Debt more than quadrupled as we fought world war ii. How did we pay for that war . And why didnt it bankrupt us . Early in the morning of september 1, 1939, german armies ma