Hello mates, I’m María, and I’m going to explain what we have made today. Today in Social Sciences we have learned about the Great Depression: the crisis became worse due to the economic liberalism orthodoxy, that was opposed to the intervention of the State in economy,; the deflationist policy, because they made the prices low in order to improve the consumption; the protectionism, because the USA increased tariffs to protect their industry and international trade contracted, then this crisis was extended to Europe.
Paqui has explained us the proposals to solve the crisis, she has said that John Maynard Keynes was a very intelligent man of this period. He was a British economist that proposed solutions like the intervention of the State and the increasing of the public expenses. He though that the State had to create jobs and reduce unemployment and stimulated the production and consumption and reduced the stocks, even when it meant the increasing of the State déficit.
Also we have learned that Roosevelt’s government launched some emergency laws to reactivate economy, and these decisions were called the three R Program: Reform, Relief and Recovery. The decisions to reactivate economy were, the subsidies for farmers to destroy their stocks and recover prices, the mínimum prices, in order to fight deflaction, and the creation of the Public Works Administration, to build big infraestructures with public Money and create jobs. We have learned about the Social Legislation, which consisted in the Social Security Act, the National Labour Relations Act, the national mínimum salary, and the abolition of the child labour. Another important reform that was included on the decisions was the Financial Legislation, with the banking reform that was the control of the banks in order to avoid bankrupts; and the creation of the SEC to supervise the Stock Exchange Market and protect investors.
Paqui has also explained us what’s the meaning of TTIP. It means the Transatlantic Trade and Investment Partnership, that were a series of trade negotiations being carried out mostly in secret between the EU and US, and it’s about reducing the regulatory barriers to trade for big business, things like food safety law, environmental legislation, banking regulations and the sovereign powers of individual nations.
-Bail out: rescatar un banco
-Deflactionist policy: política deflacionista
-New Deal: nuevo reparto