How Did Alan Greenspan Affect The Economy

Every year Time Magazine comes out with a special edition titled “The Worlds Most influential People” Everyone from Presidents, Kings, Celebrities, and Authors make this annual list. The names are some that everyone recognizes: --------------------------- however, a name that frequently appears is one many people may not recognize, Jannet Yellen. Jannet Yellen is Chairwoman of the Federal Reserve, and arguably the most influential person in the world. The Federal Reserve is the bank of the United States. The Federal Reserve’s decisions, approved by Jannet Yellen, impact the entire US Economy, the largest and most important economy in the world, almost instantly.

The New Deal was a series of programs, including, most notably, Social Security, that were enacted in the United States between 1933 and 1938, and a few that came later. They included both laws passed by Congress as well as presidential executive orders during the first term (1933–1937) of President Franklin D. Roosevelt. The programs were in response to the Great Depression, and focused on what historians refer to as the; Relief, Recovery, and Reform: relief for the unemployed and poor, recovery of the economy to normal levels, and reform of the financial system to prevent a repeat depression.

Many people believe the Stock Market crash and the Great Depression are one in the same. In the nineteen twenties the Dow Jones went from sixty to four hundred. People became instant millionaires. Trading became America’s favorite pastime and a quick way to get rich. There were Americans mortgaging their home and investing their life savings in stock such as ford. However, there were many fake companies that formed to deceive the inexperience investors. Many investors did not believe that a crash was possible; they all thought the market would always go up.

From a liberal perspective, the Reagan Revolution was insignificant for the United States. For example, Reagan’s plan was to stimulate the economy by introducing the Reaganomics. He lowered tax rates, which left more money for individuals and businesses to spend, save, or invest. President Reagan cut federal taxes by 25 percent over a three-year period, but the economy continued to struggle for two years and the unemployment rate rose. Although, the personal income grew in the 1980s, the income gap between the rich and poor widened. The Reaganomics assisted the rich, but hurt the poor. These tax cuts would raise wealth among the rich and then would “trickle down” to all Americans. The problem with that is that the middle class Americans would have to wait for trickle effect.

The stock market crashed on Thursday, October 24, 1929, less than eight months into Herbert Hoover’s presidency. Most experts, including Hoover, thought the crash was part of a passing recession. By July 1931, when the President wrote this letter to a friend, Governor Louis Emmerson of Illinois, it had become clear that excessive speculation and a worldwide economic slowdown

Leading up to the year 1981, America had fallen into a period of “stagflation”, a portmanteau for ‘stagnant economy’ and ‘high inflation’. Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to pull itself out of this low. During the election of 1980, Ronald Reagan’s campaign focused on a new stream of economic policy. His objective was to turn the economy into “a healthy, vigorous, growing economy [which would provide] equal opportunities for all Americans, with no barriers born of bigotry or discrimination.” Reagan’s policy, later known as ‘Reaganomics’, entailed a four-point plan which cut taxes, reduced government spending,

Beginning on October 29, 1929, there was a stock market crash in the United States which was a significant turning point because it halted the considerable economic success from the roaring 1920s, leading to a nationwide depression. This event took place during the presidency of Herbert Hoover, and it resulted in a drastic change of the United States’ political, economic, and social structure. This event also spurred the interest of many political figures to try to save the economy including Franklin Delano Roosevelt who issued many reforms for the protection of the people and to restore the vitality of the nation. The Stock Market Crash of 1929 was a major turning point in United States History because it represented the negative impacts of the changes derived from the roaring 20’s, and the events that occurred after this event strongly impacted the structure of society leading up to today.

Ronald Reagan was a democrat that became president during the Cold War times. Many people reference his presidency but don't know about the ideals and actions he undertook as president. Other than being known as the "Great Communicator", Reagan is also known for other things that will go down in History. One of those is Reaganomics and how it positively affected the economy but sadly tripled the national debt, his foreign policy, and the Iran-contra scandal. Reaganomics was Reagan's economic plan and nowadays it is called trickle down economics.

Afterwards, she started working as an economist with the Federal Reserve’s Board of Governors from 1977 to 1978 in the Division of International Finance specifically the Trade and Financial Studies

when savings are high, many people will be willing to save, but the banks will hold the money from investing may till the saving rate get low. In my opinion, the United States is not in that situation now because right now the economy is weak. The federal Reserve has the rates about as low as they can go so that once companies start spending and borrowing again, it’s as easy as possible for the banks to lend them money at a very inexpensive rate. The Federal Reserve will help to solve that problem by implementing and directing Monterey policy to create favourable conditions that result increased employment and price stability through management of the money

During this period, many Internet-based companies, commonly referred to as dot-coms, were founded, many of which failed. Academics Preston Teeter and Jorgen Sandberg criticized Greenspan for his role in the promotion and rise in tech stocks. Their research cites numerous examples of Greenspan putting a positive spin on historic stock valuations despite a wealth of evidence suggesting that stocks were overvalued. Sequentially, he was criticized for contributing to the subprime mortgage crisis. When his fifth term expired in 2006, Greenspan retired from his position at the Federal Reserve Board. His successor in this role was Ben Bernanke. In 2011, the bipartisan Financial Crisis Inquiry Commission found that during the U.S. housing bubble of the early 2000s, Greenspan’s failure to limit trade in securities backed by mortgage loans and his advocacy of deregulation of the financial industry had contributed to the global financial crisis of 2008. Wall Street and Greenspan often found themselves at odds. Most business papers have shaped Greenspan as being rabidly opposed to inflation. Greenspan was criticized for pursuing a battle against inflation when he could have used his power to reach full employment or economic growth

Yellen first worked as an economist for a year for the Federal Reserve in the 1970’s. After this, she

Later in his Presidency, Ronald Reagan would appoint Alan Greenspan to head the Federal Reserve Bank. Greenspan, an economist, had previously sent a letter to government regulators to help convince them of the “soundness” of the savings and loan industry and its need to be de-regulated. He was paid $40,000 by a top executive of the savings and loan industry, Charles Keating, for his work in convincing the regulators to de-regulate the savings and loan industry. After the collapse of the savings and loan industry, many top executives were arrested and sent to prison for looting their companies, Charles Keating was one of the main criminals that were sent to prison. (Ferguson 15:35)

Ben Bernanke began his 4 year appointment as Fed Chairman and 14 year term on the Federal Reserve Bank's Board of Governors February 1, 2006 by President George H.W. Bush. He was appointed to a second term as the Chairman on February 1, 2010 by President Barack Obama. Dr. Bernanke received his B.A. in economics from Harvard in 1975 and a Ph.D. in economics from the Massachusetts Institute of Technology in 1979 (Federal Reserve, 2011).

During his time as a student at New York University, Greenspan worked on Wall Street. He worked for the firm Brown Brothers Harriman in the equity research department before working his way to leadership of Townsend-Greenspan & co, which was a consulting firm in 1955. He held this