Regulating Greed

2019 ◽  
pp. 79-94
Author(s):  
Saul Levmore

John Dos Passos’ The Big Money (1936) is hardly the only important American work to see greed as a cause of the stock market crash and then the Great Depression. It is packed with the problem of distinguishing greed from ambition, and it raises the question of the right social response to unattractive impulses. Prior to losing his idealistic fervor, or exchanging it for conservative passion, Dos Passos freely associated ambition with corruption, and acquisitiveness with antisocial self-interest. His deployment and biographical sketches of industrialists and other notable Americans suggest the difficulty of distinguishing avarice from ambition. Dos Passos’ treatment of ambition presupposes an economy where one person’s gain is at the expense of another; artistic accomplishment is, however, freed from this assumption. The novel speaks more to individual excesses than to their regulation, but it offers an opportunity to think about both.

2000 ◽  
Vol 23 ◽  
pp. 79-102 ◽  
Author(s):  
Elif Akçetin

The effects of the Great Depression of 1929 on peasants in Turkey is an area of study that has remained neglected, despite the fact that peasants then constituted 75 percent of the population. The reason why the condition of peasants has not attracted much attention is the dramatic change between the economic policies of the 1920s and those of the 1930s. The immediate consequence of the stock-market crash and the sudden drop in prices was the shrinkage of international trade. Governments dealt with the depression by implementing quotas on imports, and liberal economic policies were no longer considered successful. Protectionism became the most popular policy for the management of economies in difficulty. The change in economic policies during this period constituted a break with the past and therefore has been the principal focus of studies on the Great Depression.


Author(s):  
William E. Ellis

In the late 1920s Cobb’s popularity declined, due to the changing times. Although he continued to add books to his repertoire, they failed to receive critical acclaim. Other elements of Cobb’s life were still satisfying, such as his wanderlust and his love of spending time with friends. The stock market crash and the Great Depression took a toll on the Cobb family’s finances. While Cobb’s writing career was slowing down, Buff had become an accomplished writer. Cobb delved into work in radio and ventures in Hollywood.


Author(s):  
Corinne Crawford

<p class="MsoNormal" style="text-align: justify; line-height: normal; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; color: black; font-size: 10pt; mso-themecolor: text1;">The Glass-Steagall Act was passed in 1933 in response to the failure of the banks following the Great Depression.<span style="mso-spacerun: yes;">&nbsp; </span>One out of every five banks failed in the aftermath of the stock market crash. Legislators and regulators questioned the role the underwriting of securities played in the financial collapse. Many believed these investment banking activities caused a conflict of interest in that banks often suggested that their customers purchase securities the banks had underwritten.<span style="mso-spacerun: yes;">&nbsp; </span>They believed that this conflict of interest contributed significantly to the stock market crash and the bank failures.<span style="mso-spacerun: yes;">&nbsp; </span>The Glass-Steagall Act forced banks to choose between being a commercial bank or an investment bank, in effect constructing a wall between commercial banking and investing banking activities.<span style="mso-spacerun: yes;">&nbsp; </span>The Glass- Steagall Act was the first law signed by President Franklin D. Roosevelt upon taking the oath of office.<span style="mso-spacerun: yes;">&nbsp; </span>Almost immediately upon enactment, the financial community lobbied to have the Act repealed.<span style="mso-spacerun: yes;">&nbsp; </span>Over the years, this persistent lobbying led to a continual reinterpretation and liberalization of the Glass-Steagall Act, until the Act was repealed in 1999.<span style="mso-spacerun: yes;">&nbsp; </span>On the dawn of repeal, the late Senator Paul Wellstone made an impassioned plea on the Senate floor. He said the repeal of Glass-Steagall would enable the creation of financial conglomerates which would be too big to fail.<span style="mso-spacerun: yes;">&nbsp; </span>Furthermore, he believed that the regulatory structure would not be able to monitor the activities of these financial conglomerates and they would eventually fail due to engaging in excessively risky financial transactions.<span style="mso-spacerun: yes;">&nbsp; </span>Ultimately, he said, prophetically, that the taxpayers would be forced to bail out these too-big-to-fail financial institutions.<span style="mso-spacerun: yes;">&nbsp; </span>Clearly, Senator Wellstone was in the minority as the legislation repealing the Glass-Steagall Act was passed in both the House and the Senate with large majorities.<span style="mso-spacerun: yes;">&nbsp; </span>President Bill Clinton signed the legislation into law in late November, 1999.<span style="mso-spacerun: yes;">&nbsp; </span>It has now been over ten years since the repeal of Glass-Steagall and the United States is in the grip of the largest financial crisis since the Great Depression.<span style="mso-spacerun: yes;">&nbsp; </span>Legislators and regulators are again questioning the role that the investment banking activities of commercial banks have played in a financial crisis.<span style="mso-spacerun: yes;">&nbsp; </span>Some believe the repeal of Glass-Steagall contributed significantly to the current financial crisis.<span style="mso-spacerun: yes;">&nbsp; </span>Others believe that if Glass-Steagall had still been in place, the financial crisis would be much worse.<span style="mso-spacerun: yes;">&nbsp; </span>This paper examines the role that the repeal of Glass-Steagall played in the current financial crisis.<span style="mso-spacerun: yes;">&nbsp; </span><span style="mso-spacerun: yes;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</span></span></p>


Author(s):  
John Kenneth Galbraith

This chapter examines the impact of the Great Depression on classical economic ideas. When the Great Depression struck after the stock market crash of October 1929, economists in the classical tradition such as Joseph Schumpeter and Lionel Robbins chose to do nothing. They argued that the depression must be allowed to run its course. The chapter first considers U.S. economic policy under Franklin D. Roosevelt, focusing on how he addressed three visible features of the depression: deflation in prices, unemployment, and the hardship depression suffered by especially vulnerable groups. It also discusses the views of two scholars who belonged to the group known as the Roosevelt Brains Trust (later the Brain Trust), Rexford Guy Tugwell and Adolf A. Berle Jr. Finally, it explores how depression and price deflation led to two efforts to raise prices, one through the National Recovery Act and the other through agriculture.


2020 ◽  
Vol 27 ◽  
Author(s):  
Patricia Alexander

In truth, it feels rather pretentious of me to consider my life to be a meaningful source of wisdom that might guide future scholars. Perhaps that is why I have chosen to draw on the life of my father, William Cecil Mullins, as the inspiration for the guidance I proffer here. I rarely speak about this good man and only few of my friends and colleagues ever had the pleasure of meeting him while he was alive. Yet, forever etched in my memory are his stories about growing up in the hills of Southwestern Virginia during the Great Depression, the survival instincts that those years instilled in him, and the abiding love he had for his mother, eight siblings, and for those hills he called home.Because I spring from such humble roots, I have always felt different from those I regarded as born to a career in the academy. Indeed, I see the fabric of my life as more akin to the quilts that my paternal grandmother, Creecy Lou, made from feed sacks and the remnants of tattered garments rather than to the rich tapestries I have seen adorning the halls of academia. That is not to disparage my upbringing or my grandmother’s quilts. In fact, the one quilt I have of hers that has survived all these passing years remains among my most cherished possessions. Every faded or worn piece carries memories and feelings that are truly precious to me. Like that quilt, my life is a patchwork that is not easily stitched together to form a clear or coherent tale of academic success that others might wish to emulate. Yet, I have achieved success. That I must admit. I also do not believe that my success came in spite of my humble roots. Instead, if I merit the right to stand among renowned scholars in education research contributing their acquired wisdoms, it is because of those roots and the insights they have afforded me.With that backdrop in place, let me share several basic “truths” that I have stitched together from my father’s words and deeds. These patchworked lessons have been instrumental to my academic success. Perhaps these lessons might inspire others seeking guidance. Whether these lessons represent “wisdom,” I cannot say. Yet, as with my grandmother’s quilt, I am confident in their practical value.


Prospects ◽  
1980 ◽  
Vol 5 ◽  
pp. 197-239
Author(s):  
Amy Godine

In a movie directed by Frank Capra toward the end of the Great Depression, an enterprising lady reporter with an eye for the photogenic persuades a down-and-out ballplayer to act the part of “John Doe,” “author” of her new syndicated front-page column, “I Protest!” The speeches that Ann Mitchell (Barbara Stanwyck) pays the handsome hobo (Gary Cooper) to front are, if slightly sentimental, always provocative and immediately successful. They inveigh against the petty self-interest that in the name of rugged individualism has weakened and corrupted the cause of the common citizen in this country; they plead for a new spirit of grass-roots cooperative activism. “Tear down the fences,” John Doe implores his small-town audiences. “You're the hope of the world!”


2007 ◽  
Vol 16 (2) ◽  
pp. 203-213
Author(s):  
MARK BIONDICH

AbstractThe Croat Peasant Party was arguably the most important Croatian political party during the existence of the first Yugoslavia (1918–41). Under the leadership of Vladko Maček (1879–1964), it entered the most difficult period of its history: it was forced to contend with the royal dictatorship (1929–34) of King Aleksandar Karadjordjević, the Great Depression, growing nationality tensions and an increasingly volatile political climate in which the extremes of the right and left, represented in Croatia by the Ustaša and Communist parties respectively, contended for power. This article examines the contentious relationship between Maček's Croat Peasant Party and the fascist Ustaša movement between 1929 and 1941, and assesses Maček's legacy and his place in Croatia's 20th-century political history.


2009 ◽  
Vol 23 (1) ◽  
pp. 77-100 ◽  
Author(s):  
Markus K Brunnermeier

The financial market turmoil in 2007 and 2008 has led to the most severe financial crisis since the Great Depression and threatens to have large repercussions on the real economy. The bursting of the housing bubble forced banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies. At the same time, the stock market capitalization of the major banks declined by more than twice as much. While the overall mortgage losses are large on an absolute scale, they are still relatively modest compared to the $8 trillion of U.S. stock market wealth lost between October 2007, when the stock market reached an all-time high, and October 2008. This paper attempts to explain the economic mechanisms that caused losses in the mortgage market to amplify into such large dislocations and turmoil in the financial markets, and describes common economic threads that explain the plethora of market declines, liquidity dry-ups, defaults, and bailouts that occurred after the crisis broke in summer 2007.


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