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4 - A New Deal

from The Second Era

Published online by Cambridge University Press:  24 March 2022

Seth C. Oranburg
Seth C. Oranburg
Affiliation:
Duquesne University, Pittsburgh
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Summary

This Chapter discusses the infamous economic crisis, the Great Depression, and its political and regulatory ramifications. After a devastating stock market collapse seemingly enabled by laissez-fair policy (“hands-off” governmental role in the marketplace), politicians turned to John Maynard Keynes for economic policy guidance. Keynes theorized that investment in infrastructure and public works projects could boost the economy by a multiplier factor. President Franklin D. Roosevelt also turned to Justice Louis Dembitz Brandeis to shape his administration’s regulatory policies. The legislature passed the Securities Act of 1933, which called for strict disclosure requirements compelling registered companies to regularly report financial statistics to investors and the public. This crucial piece of legislation created the Securities Exchange Commission (the “SEC”). Public sale of stock came under the purview of this powerful regulatory agency. In the wake of the Great Depression, a galvanized federal government, bent on protecting the American people from another economic catastrophe, passed a series of sweeping regulatory and legislative reforms collectively called The New Deal.

Keywords

Great DepressionKeynesian economicsKeynesJustice Louis Dembitz BrandeisFranklin D. RooseveltSecurities Act of 1933Securities Exchange Commission (SEC)
Type
Chapter
Information
A History of Financial Technology and Regulation
From American Incorporation to Cryptocurrency and Crowdfunding
 , pp. 43 - 50
Publisher: Cambridge University Press
Print publication year: 2022

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References

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  • A New Deal
  • Seth C. Oranburg, Duquesne University, Pittsburgh
  • Book: A History of Financial Technology and Regulation
  • Online publication: 24 March 2022
  • Chapter DOI: https://doi.org/10.1017/9781316597736.005
Available formats
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To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

  • A New Deal
  • Seth C. Oranburg, Duquesne University, Pittsburgh
  • Book: A History of Financial Technology and Regulation
  • Online publication: 24 March 2022
  • Chapter DOI: https://doi.org/10.1017/9781316597736.005
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • A New Deal
  • Seth C. Oranburg, Duquesne University, Pittsburgh
  • Book: A History of Financial Technology and Regulation
  • Online publication: 24 March 2022
  • Chapter DOI: https://doi.org/10.1017/9781316597736.005
Available formats
×