In the 1920s, the Banking System helped spread prosperity. In the 1930s, it dragged america down. How could a holiday put an end to the deepening crisis . Banking deregulation cost taxpayers almost a half trillion dollars. Did banks need more regulation or less . Our nation has long tried to protect the banking business, but weve never eliminated all the risks. The Banking System why must it be protected . Economic analyst richard gill and i will investigate that question on economics usa. Im david schoumacher. Captioning made possible by the annenbercpb project will investigate that question on economics usa. Americas businessmen and women know how dependent they are on a Friendly Bank for their success and the growth of their communities. Americas Banking System has provided that success and growth for more than a century. Although most banks are healthy and longlived, historically we have faced bank failures. While we can accept other businesses failing with a shrug, a bank closing
To halt inflation durinand ease unemployment. But what would the fed do in an economic emergency . Monetary policy how well does it work . Ats the queion economic analyst richard gill and i will investigate on this edition of economics usa. Im david schoumacher. On this edition the Federal Reserve board is responsible for deciding how much money the economy needs to grow. In the early 1970s, the fed held to a policy of using the money supply to try to keep the economy on course. In times of inflation, the fed tightened the money supply to squeeze excess dollars out of the economy. In times of recession, it increased the money supply to stimulate growth. But in 1975, the fed, under the chairmanship of arthur burns, faced a new and troubling dilemma caught between persistent inflation and a growing recession, how did chairman burns keep the economy on course . By late 1974, inflation had become a serious economic problem. Under pressure from rising fuel prices, inflation rose to a stagge
What was the result . Rising prices became a fact of life despite the clamor to do something about it. Inflation how did the spiral begin . With economic analyst richard gill, well explore that on this edition of economics usa. Im david schoumacher. What is inflation . Here at the bureau of labor statistics, they measure inflation, in a sense, with the Consumer Price index, totaling the costs of goods and services, then comparing them from month to month and year to year. Inflation has affected everybody. Some look back nostalgically to the threecent postage stamp. When prices go up a little, were not surprised. But when they get out of hand, we take notice, as we did in the late 1960s when prices began spiraling upward. What caused that spiral . As the country grew in the 1950s, no one was worried about inflation. Then late in the decade, the economy cooled down. That became a factor in the 1960 elections. Im not satisfied to have 50 of our steel mill capacity unused, or when the Unit
Activist theories of fiscal and Monetary Policy have dominated economics since the depression. By the mid1980s, we were doubting our ability to manage the economy. Stabilization policy are we still in control . Well investigate that with economic analyst richard gills help on this edition of economics usa. Im david schoumacher. For many years after the great depression, National Economic policys basic goal was minimizing unemployment. But the winter of 1982 saw 12 million unemployed. Many complained they were victims of a needlessly cruel government policy. Public enemy number one was inflation, and jobless workers were the war casualties. The battle cast new doubt on the governments ability to manage the economy or the wisdom of even trying. Why was stopping inflation so hard . The time has come for Decisive Action to break the vicious circle of spiraling prices and costs. Inflation is domestic enemy number one. Present high inflation threatens the Economic Security of our nation. Fro
Won higher pay for their members. Why in 1979 would fraser agree to take less . Employers and labor unions, like buyers and sellers, try to make the best deal for themselves. Labor and management how do they come to terms . With economic analyst richard gill, well examine that question on this edition of economics usa. Im david schoumacher. Fewer than 1 3 of American Workers are covered by union contract. But organized labors strength at the economys pressure points the big smokestack industries, the arteries of transportation and communication make them a force to be reckoned with. For more than 75 years, labor unions have been a fact of American Economic l how did they get power . We are childn of immignts. The largest number came here around the turn of the century. Millions, most of them jewish or italian, unskilled and uneducated, settled in new york citys crowded tenements. What kind of work did america offer . Fannie susskind remembers. We came with the needle in our hand. Ive w