The Internet BROKE The Stock Market?!

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Show Notes

With the rise of the internet companies in the mid 90’s everyone was eager jump on the bandwagon of investments in the hopes of gaining riches. Hear Jac explain the dot com bubble, who lost it all, and who got rich after the pop!

Sources:

http://hnn.us/article/173359

https://www.investopedia.com/terms/d/dotcom-bubble.asp

https://time.com/3741681/2000-dotcom-stock-bust/

https://www.theatlantic.com/ideas/archive/2019/10/are-we-cusp-next-dot-com-bubble/600232/

https://time.com/3741681/2000-dotcom-stock-bust/

https://www.history.com/news/who-invented-the-internet#:~:text=The%20first%20workable%20prototype%20of,communicate%20on%20a%20single%20network.

https://home.cern/science/computing/birth-web#:~:text=Tim%20Berners%2DLee%2C%20a%20British,and%20institutes%20around%20the%20world.

Transcript

0:00:00.030,0:00:03.600
hello everybody and welcome back to

0:00:01.740,0:00:08.280
another episode of how did we not know

0:00:03.600,0:00:11.759
that I’m Matt I’m Jack and today jack is

0:00:08.280,0:00:16.740
gonna talk about something related to

0:00:11.759,0:00:21.240
the Internet all right so now have you

0:00:16.740,0:00:23.970
heard of the dot-com bubble yeah I have

0:00:21.240,0:00:26.609
but I really could not tell you what it

0:00:23.970,0:00:29.279
was that’s okay do you kind of know like

0:00:26.609,0:00:31.679
where what time frame it was I guess

0:00:29.279,0:00:36.750
like it’s the emergence of calm so that

0:00:31.679,0:00:41.160
could give something yeah late 90s

0:00:36.750,0:00:44.760
yes yes yeah mid to late 90s was like

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mid 90s but yeah it’s basically we’ll

0:00:44.760,0:00:48.239
see how long this episode actually goes

0:00:46.440,0:00:51.449
because it’s kind of self-explanatory

0:00:48.239,0:00:53.370
there was a dot-com bubble which a

0:00:51.449,0:00:56.010
bubble is a stock market term which I

0:00:53.370,0:00:58.649
will explain later but basically all of

0:00:56.010,0:00:59.969
these companies were emerging and a lot

0:00:58.649,0:01:02.219
of people were investing in these

0:00:59.969,0:01:05.100
companies because they had that buzzword

0:01:02.219,0:01:07.290
of internet in them and eventually those

0:01:05.100,0:01:09.180
companies started to fail because

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everything was over evaluated and we had

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a market crash so I’m just gonna kind of

0:01:13.229,0:01:18.659
try to explain how that bubble emerged

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why it crashed and then how there are

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some parallels to companies that we see

0:01:20.700,0:01:25.280
today as well

0:01:22.810,0:01:27.470
interesting all right I’m excited yeah

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so I’m going to start out by asking you

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what is the Internet and how does it

0:01:29.990,0:01:35.150
work

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oh my god morning questions to start

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your day

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oh boy okay this is probably like such a

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easy question what is the internet on

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the Internet is the world of idle and

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how does it work I really you’re totally

0:02:00.680,0:02:05.960
fine I was I think two years into my

0:02:03.500,0:02:07.940
computer science degree and I would

0:02:05.960,0:02:10.550
still be like yeah how does the internet

0:02:07.940,0:02:12.440
work how like what is that so don’t even

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worry about it it’s not common knowledge

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to just process how technology came

0:02:16.160,0:02:21.380
about but I will give you a brief lesson

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so the internet was actually it wasn’t

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created by one specific person it’s

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created with the collaboration of a

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dozen different scientists programmers

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and engineers who worked to develop

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smaller technologies which then came

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together to form the Internet the first

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workable prototype of the Internet came

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in October of 1969 with the creation of

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ARPANET and ARPANET stands for the

0:02:45.140,0:02:50.420
Advanced Research Projects Agency

0:02:46.790,0:02:51.709
network and that was a like network that

0:02:50.420,0:02:55.580
was funded by the United States

0:02:51.709,0:02:59.030
Department of Defense so a fun fact is

0:02:55.580,0:03:00.200
actually our armies and our militaries

0:02:59.030,0:03:01.790
and our Department of Defense will

0:03:00.200,0:03:04.790
always have the most up-to-date

0:03:01.790,0:03:06.620
technology because that’s most of the

0:03:04.790,0:03:08.989
technology that we develop as you saw

0:03:06.620,0:03:10.970
with the space race comes out of a need

0:03:08.989,0:03:13.820
to defend yourselves which is

0:03:10.970,0:03:14.780
unfortunate but it’s true that really if

0:03:13.820,0:03:16.250
you feel like you’re going to die

0:03:14.780,0:03:21.500
without this technology it really

0:03:16.250,0:03:24.489
motivates you to start working yeah

0:03:21.500,0:03:27.200
they’ll always have the newest and

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shiniest of technology in there and I

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remember during one of my internships I

0:03:29.360,0:03:33.830
had a manager who was a little older

0:03:31.940,0:03:36.170
than us and she talked about what it was

0:03:33.830,0:03:38.180
like to have the first personal computer

0:03:36.170,0:03:40.579
in the 80s because the military people

0:03:38.180,0:03:44.420
had it first so she got to be a part of

0:03:40.579,0:03:45.680
that test wave oh good so yeah it’s

0:03:44.420,0:03:47.780
really cool so if you

0:03:45.680,0:03:52.879
or interested in tech maybe join the

0:03:47.780,0:03:55.579
military do some surgery oh yeah so then

0:03:52.879,0:03:58.540
the Internet in layman’s terms is

0:03:55.579,0:04:01.970
basically just a large network of nodes

0:03:58.540,0:04:04.010
so a nodule is just like one point right

0:04:01.970,0:04:06.650
and an odd good a node could be a

0:04:04.010,0:04:08.659
computer or a phone anything that’s

0:04:06.650,0:04:11.030
connected to the Internet it’s a node so

0:04:08.659,0:04:14.680
that all connects to each other and

0:04:11.030,0:04:17.359
that’s what we form the internet through

0:04:14.680,0:04:18.680
okay yeah if you get lost just let me

0:04:17.359,0:04:21.919
know and I’ll try to explain it again

0:04:18.680,0:04:24.080
but the yeah it’s just each node is

0:04:21.919,0:04:26.389
talking to each other that’s it so like

0:04:24.080,0:04:28.220
I’ll send you data and you send me data

0:04:26.389,0:04:30.289
back and that’s it and it’s just a bunch

0:04:28.220,0:04:33.919
of these little nodes sending data to

0:04:30.289,0:04:36.710
each other okay yeah and that whole

0:04:33.919,0:04:40.340
network is called the internet gotcha

0:04:36.710,0:04:44.660
okay yeah so it’s just a huge exchange

0:04:40.340,0:04:46.789
of data and in 1969 ARPANET delivered

0:04:44.660,0:04:48.710
its first message which was node to node

0:04:46.789,0:04:52.070
communication from one computer to

0:04:48.710,0:04:55.490
another which was at the time personal

0:04:52.070,0:04:57.800
computers didn’t arise till the 1980s so

0:04:55.490,0:05:03.710
in 1969 computers are still about the

0:04:57.800,0:05:05.449
size of a small house oh yeah so the

0:05:03.710,0:05:07.820
first two computer will not the first

0:05:05.449,0:05:10.699
two computers but the computers that did

0:05:07.820,0:05:14.000
the first like internet connection were

0:05:10.699,0:05:16.550
based in a research lab in UCLA and then

0:05:14.000,0:05:20.240
another research lab at Stanford and the

0:05:16.550,0:05:23.479
message was just one word it was login

0:05:20.240,0:05:25.639
and even that message was a bit too long

0:05:23.479,0:05:29.419
they only got the first two letters of

0:05:25.639,0:05:32.510
that so ello but that counts great oh my

0:05:29.419,0:05:35.720
gosh yeah so the world wide web was

0:05:32.510,0:05:37.550
actually started in 1989 and that was

0:05:35.720,0:05:39.830
invented by Tim berners-lee and it was

0:05:37.550,0:05:41.690
just made for scientists in universities

0:05:39.830,0:05:43.130
and institutions around the world the

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world wide web is actually just the most

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popular platform for accessing data and

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information sharing through hyperlinks

0:05:47.060,0:05:53.479
and browsers but yeah the there are a

0:05:50.510,0:05:57.139
few different transfer protocol servers

0:05:53.479,0:05:59.330
that existed before that limit losing

0:05:57.139,0:06:03.229
you I do think that’s like sick

0:05:59.330,0:06:05.240
ah okay cool cool hey yeah and a

0:06:03.229,0:06:07.759
Transfer Protocol is just if we’re gonna

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transfer something and we follow a

0:06:07.759,0:06:12.349
protocol a set of rules so that’s how

0:06:10.250,0:06:15.080
we’re gonna exchange data is this

0:06:12.349,0:06:16.699
Transfer Protocol so the so that’s like

0:06:15.080,0:06:19.900
how you exchange data between the nodes

0:06:16.699,0:06:22.099
or like all the computers from just

0:06:19.900,0:06:24.889
exactly they have to follow a specific

0:06:22.099,0:06:27.259
protocol is it like when you say like a

0:06:24.889,0:06:29.479
specific protocol is it almost like like

0:06:27.259,0:06:31.310
I’m like trying to relate it like to

0:06:29.479,0:06:33.620
coding is it like the same like language

0:06:31.310,0:06:35.479
or like is that I might complete the ER

0:06:33.620,0:06:39.650
yeah so you’re yeah you’re getting that

0:06:35.479,0:06:41.569
there’s like yeah it is the same

0:06:39.650,0:06:44.150
language you can use different languages

0:06:41.569,0:06:45.710
it’s more in regards to I hope I’m doing

0:06:44.150,0:06:47.810
this right this is like I’m pulling from

0:06:45.710,0:06:50.539
my networks class that I took junior

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year it there transfer protocols that

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regard how you switch packets and

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packets are like your piece of data so

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when we if we let’s say we’re both

0:06:58.759,0:07:03.380
trying to send an email to the same

0:07:00.919,0:07:05.449
person and we follow a specific transfer

0:07:03.380,0:07:07.490
protocol so it’s whoever sent the

0:07:05.449,0:07:10.039
message first that one is going to get

0:07:07.490,0:07:12.229
delivered before my message whereas if

0:07:10.039,0:07:13.819
we sent them at the same time what

0:07:12.229,0:07:16.039
happens when we both send it at the same

0:07:13.819,0:07:17.659
time then like is it gonna be a block do

0:07:16.039,0:07:20.120
this is the person receiving it not get

0:07:17.659,0:07:23.389
any like who gets to send their message

0:07:20.120,0:07:24.949
first oh yeah so that’s like transfer

0:07:23.389,0:07:27.590
protocols is like the rules that you’re

0:07:24.949,0:07:30.199
gonna follow when you send data okay

0:07:27.590,0:07:32.979
that make sense yeah yeah I hope I’m

0:07:30.199,0:07:35.629
doing this right if any like no I just

0:07:32.979,0:07:39.080
people like come for me it’s just like

0:07:35.629,0:07:43.129
email or tweet us I will change what I’m

0:07:39.080,0:07:47.029
saying if it’s not exactly correct no no

0:07:43.129,0:07:47.770
you’re doing agree at least it sounds

0:07:47.029,0:07:49.789
smart

0:07:47.770,0:07:52.009
okay so now we’re gonna actually get

0:07:49.789,0:07:55.039
into the dot-com bubble so the Internet

0:07:52.009,0:07:58.129
is a really new cool thing the dot-com

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bubble actually lasted from 1995 to 2001

0:07:58.129,0:08:05.029
in April 30th 1993 the web became public

0:08:03.199,0:08:08.000
domain which means everybody could use

0:08:05.029,0:08:11.029
it now because before it was just mainly

0:08:08.000,0:08:12.830
for scientists and PhDs and university

0:08:11.029,0:08:14.120
people to exchange data

0:08:12.830,0:08:16.460
but now they’re like let’s give it to

0:08:14.120,0:08:19.310
everyone so with the web becoming public

0:08:16.460,0:08:21.319
domain we start to see a rise in online

0:08:19.310,0:08:25.490
internet based companies which are dub

0:08:21.319,0:08:27.050
comm SOCOM is just a domain name like

0:08:25.490,0:08:29.840
when you have google.com and

0:08:27.050,0:08:32.870
facebook.com that’s just your domain but

0:08:29.840,0:08:37.219
you could have like da IO org those are

0:08:32.870,0:08:39.110
all just different domain names so then

0:08:37.219,0:08:43.010
now we’re gonna explain what a bubble is

0:08:39.110,0:08:45.500
so we could do a whole nother episode on

0:08:43.010,0:08:48.110
how the stock market works but too

0:08:45.500,0:08:50.390
briefly if you want that please tweet us

0:08:48.110,0:08:53.890
or email us and we can go into it but

0:08:50.390,0:08:56.149
the stock market just as like piece of

0:08:53.890,0:08:57.649
advice to like anyone who doesn’t really

0:08:56.149,0:08:59.270
know how the stock market works it’s not

0:08:57.649,0:09:01.820
actually a direct reflection on how the

0:08:59.270,0:09:05.300
economy’s doing so the stock market is

0:09:01.820,0:09:07.250
basically just how we as a society are

0:09:05.300,0:09:09.800
perceiving the valuation of certain

0:09:07.250,0:09:11.870
companies so with the stock market not

0:09:09.800,0:09:14.420
actually being a direct reflection of

0:09:11.870,0:09:17.839
how the economy is doing each company

0:09:14.420,0:09:20.450
stock is also not a direct reflection on

0:09:17.839,0:09:22.730
how that company is doing it is just the

0:09:20.450,0:09:24.890
perceived value that we as consumers are

0:09:22.730,0:09:27.050
placing on it so if you think a company

0:09:24.890,0:09:29.420
is gonna do really well and everyone’s

0:09:27.050,0:09:31.100
buying into this company the valuation

0:09:29.420,0:09:34.360
is going to go up that doesn’t mean that

0:09:31.100,0:09:39.980
the company is actually doing well yeah

0:09:34.360,0:09:42.290
so a bubble emerges then when investor

0:09:39.980,0:09:44.600
valuation of an industry or company is

0:09:42.290,0:09:49.160
greater than the actual value of that

0:09:44.600,0:09:50.899
company okay right so hence the dot-com

0:09:49.160,0:09:53.180
bubble also known as the internet bubble

0:09:50.899,0:09:55.610
was the rapid rise in US technology

0:09:53.180,0:09:57.740
stock equity evaluations fueled by

0:09:55.610,0:10:00.680
investments in internet-based companies

0:09:57.740,0:10:02.510
and we knew that this was a bubble when

0:10:00.680,0:10:04.040
it was happening at the time because a

0:10:02.510,0:10:05.720
lot of the companies who are going to

0:10:04.040,0:10:07.490
market with their IPOs

0:10:05.720,0:10:11.060
which an IPO is an initial public

0:10:07.490,0:10:13.520
offering when you as a company go public

0:10:11.060,0:10:15.709
that means that you’re opening up your

0:10:13.520,0:10:19.490
stocks of the company to be bought by

0:10:15.709,0:10:22.520
individual investors like us and your

0:10:19.490,0:10:25.100
IPO is that valuation that you get once

0:10:22.520,0:10:26.270
it reaches the stock market and so with

0:10:25.100,0:10:29.240
a lot of these companies that were

0:10:26.270,0:10:31.670
to the IPO they had huge valuations

0:10:29.240,0:10:33.260
within the first day which doesn’t make

0:10:31.670,0:10:35.990
sense for a company that’s just now

0:10:33.260,0:10:37.550
emerging in the market yeah yeah

0:10:35.990,0:10:41.779
sometimes they would double on the first

0:10:37.550,0:10:45.380
day which is just wow not it’s a lot of

0:10:41.779,0:10:47.360
growth for 24 hours yeah yeah right so

0:10:45.380,0:10:48.440
obviously we ran into a lot of problems

0:10:47.360,0:10:50.870
tons of companies

0:10:48.440,0:10:52.209
we’re emerging with no rational business

0:10:50.870,0:10:55.399
plans for short-term or long-term

0:10:52.209,0:10:56.630
survival venture capitalists which are

0:10:55.399,0:10:58.310
if you don’t know what venture

0:10:56.630,0:11:00.680
capitalists are they’re just early stage

0:10:58.310,0:11:02.450
investors so if you’re specifically a

0:11:00.680,0:11:04.550
venture capitalist you like to invest in

0:11:02.450,0:11:08.180
startups which are companies that are

0:11:04.550,0:11:10.279
really really brand new but all of these

0:11:08.180,0:11:12.680
types of investors were really scared

0:11:10.279,0:11:15.560
about missing on missing out on the

0:11:12.680,0:11:17.690
growth that they were just pouring tons

0:11:15.560,0:11:21.140
of money into any company that said they

0:11:17.690,0:11:23.540
were internet base yeah well yeah I mean

0:11:21.140,0:11:26.330
that makes sense because like okay so

0:11:23.540,0:11:29.270
it’s like this new technology like that

0:11:26.330,0:11:31.610
has only been used by academic

0:11:29.270,0:11:33.020
scientists people in the military and so

0:11:31.610,0:11:34.430
for regular people like they don’t

0:11:33.020,0:11:37.339
probably don’t understand the technology

0:11:34.430,0:11:40.100
even in 2020 I so could not tell you

0:11:37.339,0:11:41.990
what the internet was so I’m sure like

0:11:40.100,0:11:44.839
people it’s like lack of understanding

0:11:41.990,0:11:47.510
of the technology and also just like

0:11:44.839,0:11:50.270
this huge revolution like I take it for

0:11:47.510,0:11:51.920
granted because I am like young and I’ve

0:11:50.270,0:11:54.589
had the internet my whole life growing

0:11:51.920,0:11:56.390
up I can’t imagine what it’d be like

0:11:54.589,0:12:00.579
without the internet and suddenly you

0:11:56.390,0:12:03.290
have the whole world’s accumulation of

0:12:00.579,0:12:05.589
entertainment like at your fingertips oh

0:12:03.290,0:12:08.540
I can’t even imagine like how

0:12:05.589,0:12:11.149
revolutionary and life-changing that

0:12:08.540,0:12:13.220
must be and so obviously yeah everyone’s

0:12:11.149,0:12:15.709
freaking on I think the whole lack of

0:12:13.220,0:12:17.870
understanding of what the technology

0:12:15.709,0:12:18.770
behind it probably did really hurt when

0:12:17.870,0:12:21.079
you’re saying like they’re just

0:12:18.770,0:12:23.209
investing money wherever it was like say

0:12:21.079,0:12:27.230
if someone has the word Internet yes

0:12:23.209,0:12:29.600
take my money what you take it make me

0:12:27.230,0:12:31.430
rich so know exactly and I I think

0:12:29.600,0:12:33.829
there’s a really strong parallel to

0:12:31.430,0:12:36.140
cryptocurrency today which we could do a

0:12:33.829,0:12:38.900
whole episode on crypto but a lot of

0:12:36.140,0:12:40.550
people don’t understand it

0:12:38.900,0:12:42.589
or some people I honestly think that

0:12:40.550,0:12:44.210
people overcomplicate crypto and they

0:12:42.589,0:12:46.339
make it this elusive thing so people

0:12:44.210,0:12:48.140
just think that it’s gonna make money

0:12:46.339,0:12:50.300
like I have to get my money into it and

0:12:48.140,0:12:51.920
then they make investments based on just

0:12:50.300,0:12:53.930
that buzzword of crypto instead of

0:12:51.920,0:12:57.140
actually evaluating okay like is this

0:12:53.930,0:12:58.839
crypto currency a kind that I believe in

0:12:57.140,0:13:04.339
do I think it’s gonna be sustainable

0:12:58.839,0:13:05.529
mm-hmm similar things yeah yeah but

0:13:04.339,0:13:08.000
you’re right a lot of the companies

0:13:05.529,0:13:10.910
because they’re getting backed by all

0:13:08.000,0:13:13.070
this money without any business plans

0:13:10.910,0:13:16.210
the idea was just they wanted to grow

0:13:13.070,0:13:19.100
big and grow really fast which isn’t

0:13:16.210,0:13:21.620
necessarily sustainable or practical for

0:13:19.100,0:13:24.020
most companies there’s always gonna be

0:13:21.620,0:13:28.070
like an uptake time and growing your

0:13:24.020,0:13:29.510
company and so eventually when all of

0:13:28.070,0:13:32.270
these companies failed to turn a profit

0:13:29.510,0:13:34.880
people lost their money and this was a

0:13:32.270,0:13:38.510
huge contribution to the 2001 stock

0:13:34.880,0:13:40.700
market crash that happened later on yeah

0:13:38.510,0:13:42.710
and so a lot of people there was a 2001

0:13:40.700,0:13:44.510
crash and a lot of people attributed to

0:13:42.710,0:13:48.110
the terrorist attacks that we had to

0:13:44.510,0:13:49.100
September 11th 2001 and if you’re

0:13:48.110,0:13:50.930
listening in you’re outside of the

0:13:49.100,0:13:53.720
states that was a huge deal in the

0:13:50.930,0:13:55.640
United States because me a very

0:13:53.720,0:13:57.709
significant terrorist attack and that

0:13:55.640,0:13:59.300
people said that the stock market crash

0:13:57.709,0:14:02.540
was related to that too but actually the

0:13:59.300,0:14:04.700
dot-com bubble burst was a potentially

0:14:02.540,0:14:07.700
larger chunk in it just because a lot of

0:14:04.700,0:14:09.529
the I’m gonna try to explain the Nasdaq

0:14:07.700,0:14:12.200
are you familiar with the Naza yeah

0:14:09.529,0:14:14.779
that’s like the collection of like the

0:14:12.200,0:14:18.529
big like a certain types of the big

0:14:14.779,0:14:20.660
companies yeah it’s an index of how the

0:14:18.529,0:14:23.480
stock market’s doing but it’s taken from

0:14:20.660,0:14:25.670
just like a chunk of large companies or

0:14:23.480,0:14:27.589
a lot of companies that make up the

0:14:25.670,0:14:28.910
stock market and they I don’t want to

0:14:27.589,0:14:31.880
say average because I don’t think it’s

0:14:28.910,0:14:34.040
an average but they will like to take

0:14:31.880,0:14:35.720
how those are doing and then figure out

0:14:34.040,0:14:38.209
this index and that indicates how the

0:14:35.720,0:14:40.910
stock market as a heat pole is doing so

0:14:38.209,0:14:43.370
that the dot-com bubble bursting

0:14:40.910,0:14:46.120
actually affected Nasdaq a lot more

0:14:43.370,0:14:49.280
because Nasdaq at the time was really

0:14:46.120,0:14:51.290
heavily dependent on huge tech

0:14:49.280,0:14:52.610
internet-based companies so that was a

0:14:51.290,0:14:56.360
large sector

0:14:52.610,0:14:58.279
yeah okay yeah and subsequently most of

0:14:56.360,0:15:02.180
the internet companies went bankrupt or

0:14:58.279,0:15:04.850
many of them did oh wow yeah so facts

0:15:02.180,0:15:08.000
and figures from the time during the

0:15:04.850,0:15:10.730
bubble kind of building up the Nasdaq

0:15:08.000,0:15:14.390
grew from a thousand points in 1995 to

0:15:10.730,0:15:17.380
over 5,000 points in 2000 with little

0:15:14.390,0:15:21.589
inflation that’s not good

0:15:17.380,0:15:24.380
yeah so then from March to April of 2000

0:15:21.589,0:15:26.300
dot-com stocks had lost nearly 1

0:15:24.380,0:15:29.329
trillion in stock value so that’s just

0:15:26.300,0:15:31.040
one month to lose a tune and stock value

0:15:29.329,0:15:34.029
for like all the companies is still a

0:15:31.040,0:15:37.579
huge deal that’s so much money though

0:15:34.029,0:15:39.920
mm-hmm comprehend that yeah it’s a lot

0:15:37.579,0:15:42.769
and even the blue chip technology

0:15:39.920,0:15:46.610
companies so a blue chip technology

0:15:42.769,0:15:48.980
company is just a really well

0:15:46.610,0:15:51.470
established and safe investment so those

0:15:48.980,0:15:54.170
are big companies like Cisco Intel and

0:15:51.470,0:15:55.850
Oracle so those are supposed to be

0:15:54.170,0:15:57.709
really stable if you put your money

0:15:55.850,0:15:59.779
there they’ve been established those

0:15:57.709,0:16:05.750
still lost more than 80 percent of their

0:15:59.779,0:16:08.779
value upon the bursts 80% mm-hmm that’s

0:16:05.750,0:16:11.000
a lot it was rough and the Nasdaq did

0:16:08.779,0:16:14.630
not recover back to its dot-com peak

0:16:11.000,0:16:17.420
until 2015 and the total number of job

0:16:14.630,0:16:20.870
losses from the dot-com bubble burst was

0:16:17.420,0:16:22.910
400 15,000 which today since we’re at

0:16:20.870,0:16:24.560
like 40 million it doesn’t seem like

0:16:22.910,0:16:29.480
that much but I’m sure at the time it

0:16:24.560,0:16:32.390
was a lot yeah wow that’s insane yeah

0:16:29.480,0:16:35.029
but some companies did survive so can

0:16:32.390,0:16:39.170
you take a guess as to what they were

0:16:35.029,0:16:44.300
think about the biggest most richest

0:16:39.170,0:16:46.089
person that exists today Oh Bill Gates

0:16:44.300,0:16:49.399
Microsoft

0:16:46.089,0:16:51.170
no actually Bill Gates is part of the PC

0:16:49.399,0:16:52.760
era because you know pert he makes

0:16:51.170,0:16:53.890
personal computers rape and that was

0:16:52.760,0:17:00.380
like in the 80s

0:16:53.890,0:17:04.840
thank richer than Bill Gates the lead

0:17:00.380,0:17:07.930
Amazon is you

0:17:04.840,0:17:10.570
Amazon upon their initial IPO trading at

0:17:07.930,0:17:13.560
7:00 at the peak of the dot-com bubble

0:17:10.570,0:17:16.870
they were trading at $100 per share and

0:17:13.560,0:17:20.080
which is a lot but today Amazon trades

0:17:16.870,0:17:24.610
for over two thousand seven dollars oh

0:17:20.080,0:17:26.620
my god yeah crazy in my head on my game

0:17:24.610,0:17:29.260
and what’s not okay for me personally

0:17:26.620,0:17:31.720
Amazon hasn’t become relevant like into

0:17:29.260,0:17:34.450
like the past like five or six years but

0:17:31.720,0:17:35.560
Wow they’ve been oh yeah they’ve been

0:17:34.450,0:17:38.620
here for a while

0:17:35.560,0:17:40.810
that’s he’s been trekking along I think

0:17:38.620,0:17:43.090
two will go into this but some of the

0:17:40.810,0:17:46.080
good things that came out of the dot-com

0:17:43.090,0:17:47.770
bubble were it did inspire a lot of

0:17:46.080,0:17:50.320
entrepreneurship because it’s like this

0:17:47.770,0:17:52.660
new technology it’s really when you

0:17:50.320,0:17:53.950
start internet-based companies they

0:17:52.660,0:17:57.040
still talk about this all the time like

0:17:53.950,0:17:59.200
e-commerce but doing that you can really

0:17:57.040,0:18:01.090
there’s not a ton of like money that you

0:17:59.200,0:18:02.980
have to put into upfront to start those

0:18:01.090,0:18:05.500
company so everyone likes to jump on

0:18:02.980,0:18:07.690
that and that type of entrepreneurship

0:18:05.500,0:18:11.530
hadn’t really been seen since before the

0:18:07.690,0:18:13.780
Great Depression so oh and in spired a

0:18:11.530,0:18:16.930
lot of new young entrepreneurs so much

0:18:13.780,0:18:20.320
so but that by the spring of 1999 there

0:18:16.930,0:18:23.260
was a survey done by Vanguard and it

0:18:20.320,0:18:26.920
said that one in 12 Americans were in

0:18:23.260,0:18:29.860
some stage of a founding business oh my

0:18:26.920,0:18:31.690
god really yeah like involved in some

0:18:29.860,0:18:32.830
way whether they’re an investor whether

0:18:31.690,0:18:35.290
they’re trying to build their own

0:18:32.830,0:18:37.000
weather they were like doing marketing

0:18:35.290,0:18:40.540
for one you just like you have your hand

0:18:37.000,0:18:45.210
in something yeah and then I have a cute

0:18:40.540,0:18:47.800
video a cute video that CNBC posted from

0:18:45.210,0:18:50.140
interviewing Jeff Bezos during the

0:18:47.800,0:18:51.940
dot-com bubble era and I’ll send it to

0:18:50.140,0:18:55.030
you after this we can also link it in

0:18:51.940,0:18:56.680
our show notes or check it out it’ll be

0:18:55.030,0:18:59.920
like in the description and on our

0:18:56.680,0:19:04.120
youtube video prepared too oh yeah I’ll

0:18:59.920,0:19:05.680
tweet it as well I really admired it I

0:19:04.120,0:19:09.010
know that Jeff Bezos is a very

0:19:05.680,0:19:12.280
polarizing character these days but I I

0:19:09.010,0:19:14.680
think this is also my two cents as just

0:19:12.280,0:19:17.600
like a college student in stem but even

0:19:14.680,0:19:19.820
the interviewer in it talks about

0:19:17.600,0:19:22.190
oh but like your you have to put money

0:19:19.820,0:19:25.220
into your company to make it run that’s

0:19:22.190,0:19:26.690
a lot of cost and the Internet this and

0:19:25.220,0:19:28.549
the Internet VAT and Jeff Bezos

0:19:26.690,0:19:31.130
literally says like Internet shouldn’t

0:19:28.549,0:19:32.929
turn that at one point in the video but

0:19:31.130,0:19:35.390
he was like the point of a company is

0:19:32.929,0:19:37.760
that you’re making like a good service

0:19:35.390,0:19:39.320
for consumers and that’s how you have a

0:19:37.760,0:19:41.360
good company so he’s like maybe the

0:19:39.320,0:19:43.100
Internet’s a part of that but at the end

0:19:41.360,0:19:45.320
of the day it’s about good customer

0:19:43.100,0:19:47.150
service being like an engineer in

0:19:45.320,0:19:49.700
Silicon Valley right now I really like

0:19:47.150,0:19:51.350
seeing that because even today a lot of

0:19:49.700,0:19:53.090
people want to follow the hype but at

0:19:51.350,0:19:56.000
the end of the day businesses that work

0:19:53.090,0:19:57.530
don’t have to be followed by the

0:19:56.000,0:19:59.179
internet or have to have like the most

0:19:57.530,0:20:00.710
emerging technology so you see all the

0:19:59.179,0:20:03.169
different types of businesses on Shark

0:20:00.710,0:20:04.730
Tank that get distributed you know

0:20:03.169,0:20:06.440
making a good product is making a good

0:20:04.730,0:20:09.380
product and you’re solving a problem and

0:20:06.440,0:20:11.809
that’s ultimately the types of companies

0:20:09.380,0:20:13.340
that I think will succeed ya know that’s

0:20:11.809,0:20:15.169
a good point it’s like it’s all about

0:20:13.340,0:20:17.120
the foundation of the company it doesn’t

0:20:15.169,0:20:19.880
matter how many flashy words you have

0:20:17.120,0:20:22.250
like yeah there has to be a good balance

0:20:19.880,0:20:23.630
between like technology but it’s not

0:20:22.250,0:20:24.880
gonna succeed unless you have a good

0:20:23.630,0:20:27.409
business

0:20:24.880,0:20:29.270
the big takeaway from that is that

0:20:27.409,0:20:30.559
bubbles are always going to naturally

0:20:29.270,0:20:33.020
arise with the emergence of new

0:20:30.559,0:20:35.600
technology and the best investments

0:20:33.020,0:20:37.610
aren’t always the most popular so you

0:20:35.600,0:20:39.799
can see similar trends today too with

0:20:37.610,0:20:41.720
things like artificial intelligence and

0:20:39.799,0:20:45.440
machine learning those are huge buzz

0:20:41.720,0:20:47.480
words and again I’m just a college look

0:20:45.440,0:20:50.030
fresh college student who took one class

0:20:47.480,0:20:53.570
on AI but I think it’s a little

0:20:50.030,0:20:55.370
overhyped just because you have to in

0:20:53.570,0:20:57.620
class they talk about the most recent

0:20:55.370,0:20:59.659
research and it’s cool but it’s not

0:20:57.620,0:21:03.970
we’re not gonna be taken over by like

0:20:59.659,0:21:07.340
superior computer overlords anytime soon

0:21:03.970,0:21:09.230
so I encourage everyone to look into

0:21:07.340,0:21:11.840
anything you’re gonna invest in look

0:21:09.230,0:21:14.510
into the company and don’t just buy into

0:21:11.840,0:21:18.500
it because everyone else’s hmm that’s

0:21:14.510,0:21:21.830
really good advice yeah that’s the

0:21:18.500,0:21:23.809
dot-com bubble wow that’s really

0:21:21.830,0:21:25.460
interesting at first I was like wow how

0:21:23.809,0:21:26.720
did I not know that it’s like how come

0:21:25.460,0:21:28.510
we don’t learn about it well like first

0:21:26.720,0:21:30.190
of all I was like three at the time

0:21:28.510,0:21:34.690
[Laughter]

0:21:30.190,0:21:38.200
and yeah like as I said technology and

0:21:34.690,0:21:39.549
sex are not really my forte by like once

0:21:38.200,0:21:42.879
you explained it Michael hey this isn’t

0:21:39.549,0:21:45.190
really that confusing like I don’t know

0:21:42.879,0:21:47.230
I feel like it’s pretty easy to

0:21:45.190,0:21:48.519
understand once you take the time to

0:21:47.230,0:21:50.710
learn about it but I don’t know it

0:21:48.519,0:21:53.399
always kind of seems scary also like one

0:21:50.710,0:21:55.809
thing because of course I always got the

0:21:53.399,0:21:57.879
International mindset right I’m like

0:21:55.809,0:21:59.679
okay with the emergence of the internet

0:21:57.879,0:22:01.809
and like all these tech companies – I’m

0:21:59.679,0:22:04.090
sure it also just changed like the

0:22:01.809,0:22:05.950
composition of how we create businesses

0:22:04.090,0:22:07.539
and then like manage management within

0:22:05.950,0:22:09.100
businesses because like you’re talking

0:22:07.539,0:22:11.860
about how there’s technology being

0:22:09.100,0:22:14.409
developed all over the world and so I’m

0:22:11.860,0:22:16.570
sure like at this time like obviously

0:22:14.409,0:22:18.309
like there’s been like international

0:22:16.570,0:22:20.830
multinational like corporations before

0:22:18.309,0:22:22.269
this but especially with the internet

0:22:20.830,0:22:24.100
and all these tiny little technologies

0:22:22.269,0:22:26.590
like you have all these companies that

0:22:24.100,0:22:30.570
are investing in overseas technology and

0:22:26.590,0:22:33.940
working with engineers and entrepreneurs

0:22:30.570,0:22:37.929
overseas so I’m like curious to see like

0:22:33.940,0:22:39.909
how that impacted our stock market – and

0:22:37.929,0:22:41.590
like the global cyber I don’t know I

0:22:39.909,0:22:43.690
just think it’s like it must have been

0:22:41.590,0:22:45.309
such a revolutionary time period all

0:22:43.690,0:22:47.799
this new technology and then like all

0:22:45.309,0:22:50.049
this multinational cooperation as well

0:22:47.799,0:22:52.389
so it just must have been a wild time

0:22:50.049,0:22:55.120
people are talking about how Alibaba

0:22:52.389,0:22:59.320
you’re familiar with that company it’s a

0:22:55.120,0:23:00.970
good our business set up to Amazon where

0:22:59.320,0:23:03.340
you can kind of just buy everything I

0:23:00.970,0:23:06.669
will say that I have used Alibaba before

0:23:03.340,0:23:09.820
and that camera recognition is amazing

0:23:06.669,0:23:13.570
like that technology is great have you

0:23:09.820,0:23:15.490
used it no but was it is that what you

0:23:13.570,0:23:20.950
were using what was when we’re in China

0:23:15.490,0:23:22.659
together what was yeah yeah yeah right

0:23:20.950,0:23:24.759
so hopefully I’m I’m not remembering

0:23:22.659,0:23:27.519
this incorrectly but Alibaba is like the

0:23:24.759,0:23:29.169
parent company of Taobao and how about

0:23:27.519,0:23:31.240
you just take a picture of something and

0:23:29.169,0:23:36.129
then exactly what you want shows up it’s

0:23:31.240,0:23:37.720
fantastic but with that a lot of people

0:23:36.129,0:23:40.029
say that Oh a lot of people are just

0:23:37.720,0:23:42.960
investing in it because it’s overhyped

0:23:40.029,0:23:44.159
and budged so

0:23:42.960,0:23:45.510
now just do your research if you think

0:23:44.159,0:23:46.770
it’s a good company put your money

0:23:45.510,0:23:48.149
towards it if you don’t think it’s a

0:23:46.770,0:23:50.190
good company don’t put your money

0:23:48.149,0:23:52.799
towards it it’s good advice that

0:23:50.190,0:23:54.990
people’s to remember and yeah yeah

0:23:52.799,0:23:57.510
thanks so much for sharing all this this

0:23:54.990,0:23:59.279
is really interesting Lee oh yeah I need

0:23:57.510,0:24:02.399
to like look more into the stock market

0:23:59.279,0:24:03.840
it’s what do you explain it also just

0:24:02.399,0:24:05.700
like computer science in general like

0:24:03.840,0:24:07.590
the word computer science it’s so scary

0:24:05.700,0:24:10.529
to me but you got a good a job of

0:24:07.590,0:24:14.149
explaining it and yeah I would like to

0:24:10.529,0:24:17.070
hear this episode so yeah for those of

0:24:14.149,0:24:19.559
you would also like Jack to cover

0:24:17.070,0:24:21.090
certain topics let us know a lot of

0:24:19.559,0:24:22.830
people if I say like oh I majored in

0:24:21.090,0:24:25.649
computer science you feel like so smart

0:24:22.830,0:24:27.840
not really guys like it’s the same as

0:24:25.649,0:24:29.429
learning any other subject and you just

0:24:27.840,0:24:31.409
got to break it down and if you’re

0:24:29.429,0:24:33.690
interested in trying to get better at

0:24:31.409,0:24:35.340
understanding like investments the

0:24:33.690,0:24:37.320
economy things like that I think a lot

0:24:35.340,0:24:39.390
of people like to make it more scary

0:24:37.320,0:24:41.520
than it actually is everyone has the

0:24:39.390,0:24:43.890
ability to learn about it and empower

0:24:41.520,0:24:46.559
yourselves and invest in things and

0:24:43.890,0:24:49.260
build things and learn how to code you

0:24:46.559,0:24:51.330
are just as able to do that as anyone

0:24:49.260,0:24:53.820
else so we can definitely talk more

0:24:51.330,0:24:56.070
about that that’s so true that’s a good

0:24:53.820,0:24:58.440
point to make thanks for sharing that

0:24:56.070,0:25:00.220
Jack and yeah let’s let’s all get rich

0:24:58.440,0:25:12.979
together that’s all

0:25:00.220,0:25:12.979
[Music]

The Great Depression Was A GOOD Thing?

How Can I Study Abroad? | The Gilman Scholarship How Did We Not Know That

Study abroad is expensive, but luckily there are scholarships available to help! In this guest episode, we talk about the founding of the Benjamin A. Gilman International Scholarship as well as application tips and deadlines. Special thanks to our guest for this week, Sarah, the host of 'A Gilman Podcast'!Ā  Check out A. Gilman Podcast here! šŸŽ™ The Gilman Scholarship Official Website: https://www.gilmanscholarship.org/ Sarah's email: sarah.a.murrayy@gmail.com šŸ“¦ ORDER YOUR HDWNKT STICKER HERE!: https://account.venmo.com/u/hdwnktĀ  Check out FSO Compass here: https://fsocompass.com/hdwnktĀ Ā  Help us improve the quality of our podcast by contributing to our Patreon: https://www.patreon.com/HowDidWeNotKnowThatĀ  Study Guides and Show Notes: http://www.hdwnkt.com — Support this podcast: https://anchor.fm/hdwnkt/support
  1. How Can I Study Abroad? | The Gilman Scholarship
  2. What Are Cryptocurrencies? | Minisode #17
  3. Is Fritz Haber Our Savior Or Our Worst Nightmare?
  4. Minisode #16: What's Going On In Papua?
  5. Japan Occupied Korea?

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Show Notes

Historical unemployment, widespread homelessness, stock market crashes, and failing crops characterized the American Great Depression; but could the immense suffering have actually been a good thing? In this episode Jac explains the start and end of the Great Depression, differences in the lives of people going through it, and the light on the other side.

Sources:

https://www.ducksters.com/history/us_1900s/great_depression.php

https://www.ducksters.com/history/us_1900s/first_new_deal.php

https://www.businessinsider.com/how-the-mob-crushed-it-during-the-great-depression-2015-6

https://www.biography.com/crime-figure/lucky-luciano

https://www.history.com/topics/great-depression/dust-bowl

https://www.history.com/topics/crime/mafia-in-the-united-states

https://www.cnbc.com/2020/04/30/us-weekly-jobless-claims.html

Transcript

0:00:00.030,0:00:07.259
all right hello and welcome to how did

0:00:04.259,0:00:10.200
we not know that my name is NAT I’m one

0:00:07.259,0:00:13.320
of your co-hosts and I’m Jac I’m your

0:00:10.200,0:00:14.700
other co-host and Jack doing a toast

0:00:13.320,0:00:20.760
what we’re gonna be talking about on

0:00:14.700,0:00:23.939
today’s episode first sure so with the

0:00:20.760,0:00:27.439
coronavirus situation happening we’re

0:00:23.939,0:00:31.320
having a lot of economic trouble

0:00:27.439,0:00:34.739
including lots of job losses lots of

0:00:31.320,0:00:36.710
crashes in the market and uncertainty so

0:00:34.739,0:00:38.760
I thought it’d be interesting if we

0:00:36.710,0:00:43.320
talked a little bit more about the Great

0:00:38.760,0:00:45.480
Depression and compared parallels not

0:00:43.320,0:00:56.190
tell me what you know about the Great

0:00:45.480,0:00:58.859
Depression in elementary school you guys

0:00:56.190,0:01:02.309
covered the Great Depression sixth grade

0:00:58.859,0:01:05.610
that’s heavy I don’t know I feel like

0:01:02.309,0:01:08.130
okay so from what I remember I always we

0:01:05.610,0:01:13.170
talked about like the New Deal a lot and

0:01:08.130,0:01:16.520
then like yeah that like from what I

0:01:13.170,0:01:19.229
know the New Deal like pulled us out of

0:01:16.520,0:01:22.560
probably prove me wrong

0:01:19.229,0:01:25.650
and then Oh like I just remember like

0:01:22.560,0:01:26.970
hearing all about like how everyone lost

0:01:25.650,0:01:30.030
their job and everyone’s like homeless

0:01:26.970,0:01:34.020
oh also the musical annie’ like that set

0:01:30.030,0:01:35.850
in the oh I didn’t know that so she’s

0:01:34.020,0:01:39.570
like the Little Orphan Annie and then

0:01:35.850,0:01:40.890
Daddy Warbucks okay I had no idea that

0:01:39.570,0:01:45.450
that wasn’t I felt like it was like

0:01:40.890,0:01:46.670
Roaring Twenties was like that maybe it

0:01:45.450,0:01:49.110
is the Great Depression

0:01:46.670,0:01:52.829
you’re like Daddy Warbucks wouldn’t be

0:01:49.110,0:01:54.710
so cheery if it was depression so the

0:01:52.829,0:01:57.210
Great Depression is after World War one

0:01:54.710,0:02:01.110
yeah after World War one we have the

0:01:57.210,0:02:03.780
roaring 20s so here we have yeah and

0:02:01.110,0:02:05.700
then before World War II exactly gotcha

0:02:03.780,0:02:10.959
so yeah that’s basically what I know it

0:02:05.700,0:02:13.420
was just the worst it was it was

0:02:10.959,0:02:17.430
it’s not fun so my grandparents told me

0:02:13.420,0:02:23.760
like how is it what we like the worst

0:02:17.430,0:02:23.760
yeah so my grandparents are

0:02:24.239,0:02:27.569
we’re gonna in like the United States in

0:02:26.459,0:02:29.909
that generation so they would have

0:02:27.569,0:02:34.769
migrated to the states from Italy and

0:02:29.909,0:02:37.769
like the Czech Republic in like late

0:02:34.769,0:02:41.310
1800s Early 1900s so my grandparents

0:02:37.769,0:02:45.209
were going through it as children and a

0:02:41.310,0:02:46.680
lot of the there’s like a legacy that a

0:02:45.209,0:02:49.079
lot of people talk about that happened

0:02:46.680,0:02:50.730
after the Great Depression that affected

0:02:49.079,0:02:51.299
the upcoming generations and it’s so

0:02:50.730,0:02:53.159
true

0:02:51.299,0:02:55.409
I didn’t get to talk to my grandparents

0:02:53.159,0:02:57.239
about what it was like growing up but I

0:02:55.409,0:02:59.819
there a lot of things that they would do

0:02:57.239,0:03:01.290
like my grandpa would store he didn’t

0:02:59.819,0:03:03.180
trust the banks he would always store

0:03:01.290,0:03:06.510
his money in his mattress like he legit

0:03:03.180,0:03:08.609
did that man thanks for collapsing right

0:03:06.510,0:03:11.370
exactly and he you know he lived through

0:03:08.609,0:03:14.819
a few recessions too because this was a

0:03:11.370,0:03:15.930
big one and I think most people aren’t

0:03:14.819,0:03:18.359
familiar with the dates with the Great

0:03:15.930,0:03:23.310
Depression but the stock market crashed

0:03:18.359,0:03:25.530
in 1929 and it didn’t hit the bottom so

0:03:23.310,0:03:27.299
that’s the first crash is 1929 the

0:03:25.530,0:03:30.930
bottom that the stocks were gonna crash

0:03:27.299,0:03:33.359
to didn’t happen till 1933 so that’s

0:03:30.930,0:03:36.209
like four years of it just going down

0:03:33.359,0:03:39.480
like not not going up at all everything

0:03:36.209,0:03:41.699
just keeps going down um and then it

0:03:39.480,0:03:43.709
didn’t get recovered until about the mid

0:03:41.699,0:03:45.269
nineteen fifty so then the stock right

0:03:43.709,0:03:48.480
has never came back up to what they were

0:03:45.269,0:03:50.370
for like my gosh yeah like 20 years

0:03:48.480,0:03:55.169
almost 20 years um

0:03:50.370,0:03:59.549
over 20 years yeah over 20 years dude um

0:03:55.169,0:04:01.379
also another another thing I remember

0:03:59.549,0:04:02.370
about the Great Depression is one of the

0:04:01.379,0:04:05.090
American Girl dolls

0:04:02.370,0:04:08.040
kit kit whatever her name is she’s from

0:04:05.090,0:04:11.629
she’s the Great Depression doll really a

0:04:08.040,0:04:14.220
kid I’m gonna like kit was like the most

0:04:11.629,0:04:16.709
privileged it’s just American Girl doll

0:04:14.220,0:04:19.919
know cuz I watched the movie and like

0:04:16.709,0:04:21.269
she heard like dad like lost his job and

0:04:19.919,0:04:23.070
they’re like so poor and she just like

0:04:21.269,0:04:26.010
make money for the family or something I

0:04:23.070,0:04:28.979
had no idea literally okay American Girl

0:04:26.010,0:04:30.449
dolls I remember it like a childhood

0:04:28.979,0:04:32.010
friend through an American Girl doll

0:04:30.449,0:04:34.289
party and she was like the richest one

0:04:32.010,0:04:36.539
out of ice and her doll was kid like

0:04:34.289,0:04:37.380
that was her doll so I just assumed it

0:04:36.539,0:04:39.240
was

0:04:37.380,0:04:43.680
no chi was definitely the most basic

0:04:39.240,0:04:43.889
American Girl doll okay okay serves her

0:04:43.680,0:04:47.580
right

0:04:43.889,0:04:50.280
just kidding okay so we’re yes so like

0:04:47.580,0:04:52.320
my grandpa would you know store money

0:04:50.280,0:04:54.680
and his mattress he didn’t trust the

0:04:52.320,0:04:57.680
banks went through a lot of recessions

0:04:54.680,0:04:57.680
and

0:04:58.220,0:05:02.060
then oh yeah their victory guard Victory

0:05:00.620,0:05:03.110
Gardens I think that might be being

0:05:02.060,0:05:05.690
correct term because I think that’s

0:05:03.110,0:05:09.440
Gardens they started after the war which

0:05:05.690,0:05:11.180
could be it but um for their World War

0:05:09.440,0:05:14.060
one I think they had Victory Gardens but

0:05:11.180,0:05:15.590
my grandpa always grew his own food like

0:05:14.060,0:05:17.480
of course they like would go to stores

0:05:15.590,0:05:19.520
too but they always like gardening was

0:05:17.480,0:05:22.520
big and I still love gardening but that

0:05:19.520,0:05:25.670
was really really big and also to my on

0:05:22.520,0:05:27.440
my grandpa side we were like Midwest

0:05:25.670,0:05:29.390
farmers I think he worked in like the

0:05:27.440,0:05:30.830
industry for a little bit but this is

0:05:29.390,0:05:32.630
getting into like my family history

0:05:30.830,0:05:36.770
lesson it’s a Great Depression but I

0:05:32.630,0:05:39.440
mean it had an impact on people to this

0:05:36.770,0:05:43.490
day and so many of the older generations

0:05:39.440,0:05:45.860
like South I well now that’s like

0:05:43.490,0:05:48.580
starting to happen again like all the

0:05:45.860,0:05:50.480
seeds if you can’t buy seeds anywhere oh

0:05:48.580,0:05:52.820
yeah because they’re snatching them up

0:05:50.480,0:05:56.990
to go hurting me now and then they’re

0:05:52.820,0:06:00.290
also like buying chickens and like oh

0:05:56.990,0:06:03.500
it’s Apes coming first full circle yeah

0:06:00.290,0:06:05.650
I mean yeah I’ve been interesting I

0:06:03.500,0:06:10.550
think we’re in a really interesting

0:06:05.650,0:06:13.130
unprecedented time as they say yeah so I

0:06:10.550,0:06:14.930
just like to go into the Great

0:06:13.130,0:06:16.010
Depression I what would you say would be

0:06:14.930,0:06:18.890
like the start of the Great Depression

0:06:16.010,0:06:22.850
do you have an idea so it’s like after

0:06:18.890,0:06:25.040
the war World War one and like everyone

0:06:22.850,0:06:28.430
comes back in like the whole world is

0:06:25.040,0:06:29.690
like all shook up and like isn’t it like

0:06:28.430,0:06:33.910
the whole world economy it’s like

0:06:29.690,0:06:38.180
plummeting and then right no am I wrong

0:06:33.910,0:06:41.990
um so the thing is ok I’m just gonna get

0:06:38.180,0:06:44.450
right into it so there is a lot of

0:06:41.990,0:06:46.340
debate on from economist and historian

0:06:44.450,0:06:47.720
as to what the actual cause of the Great

0:06:46.340,0:06:49.130
Depression was I don’t think there was

0:06:47.720,0:06:51.530
one single cause there are actually

0:06:49.130,0:06:54.169
multiple things going on so just set the

0:06:51.530,0:06:56.780
stage we finish World War one America is

0:06:54.169,0:06:57.680
on the winning side so all the other

0:06:56.780,0:06:59.680
countries that are on the losing side

0:06:57.680,0:07:02.690
like Germany they’re suffering a lot

0:06:59.680,0:07:03.650
because they lost so now they’re getting

0:07:02.690,0:07:05.670
there I think they have like a lot of

0:07:03.650,0:07:08.700
fines and stuff don’t quote me on that

0:07:05.670,0:07:10.880
they’re getting punished a bit too hard

0:07:08.700,0:07:13.800
which we find out later in World War two

0:07:10.880,0:07:15.750
but since America won we’re doing well

0:07:13.800,0:07:17.000
and so we enter the period of the

0:07:15.750,0:07:22.290
Roaring Twenties

0:07:17.000,0:07:24.000
when Prohibition was going on but also

0:07:22.290,0:07:26.910
there are lots of technological

0:07:24.000,0:07:29.040
innovations during this time and the

0:07:26.910,0:07:30.990
emergence of credit happens so you could

0:07:29.040,0:07:33.240
buy things in installments and credits

0:07:30.990,0:07:39.120
so the concept of borrowing money

0:07:33.240,0:07:40.860
started to exist and with that also more

0:07:39.120,0:07:43.260
people started in getting into stocks

0:07:40.860,0:07:46.080
because you could now borrow this money

0:07:43.260,0:07:48.210
and put that in the stock market because

0:07:46.080,0:07:51.030
it kept going up so there’s no risk that

0:07:48.210,0:07:52.620
you couldn’t pay it off right so during

0:07:51.030,0:07:55.950
this time every like the economy’s

0:07:52.620,0:07:58.530
booming everyone’s like it’s great great

0:07:55.950,0:08:04.280
gatsby having a good time throwing some

0:07:58.530,0:08:04.280
parties so high school exactly yeah and

0:08:04.580,0:08:08.510
yeah meanwhile

0:08:10.090,0:08:14.140
some of the background stuff that was

0:08:12.070,0:08:16.950
happening though was that a lot of

0:08:14.140,0:08:21.190
companies weren’t being honest about

0:08:16.950,0:08:23.320
their like company evaluation right so

0:08:21.190,0:08:24.820
like those the stock prices that you’re

0:08:23.320,0:08:27.430
getting are showing that everything’s

0:08:24.820,0:08:29.050
going up but some companies are being

0:08:27.430,0:08:31.600
dishonest about stock prices too so you

0:08:29.050,0:08:32.710
couldn’t like expect that they were

0:08:31.600,0:08:34.810
gonna crash

0:08:32.710,0:08:39.630
lots of economy and this that I am

0:08:34.810,0:08:39.630
probably not explaining correctly but

0:08:39.690,0:08:43.630
yeah a lot of stuff was happening also

0:08:41.890,0:08:46.030
in addition to technological innovation

0:08:43.630,0:08:48.190
because we have basically two different

0:08:46.030,0:08:49.240
types of suffering everyone suffered but

0:08:48.190,0:08:51.130
there’s two different types of suffering

0:08:49.240,0:08:53.560
during the Great Depression there’s like

0:08:51.130,0:08:57.250
the city folk who experienced it one way

0:08:53.560,0:08:59.140
and then people in the Midwest or the

0:08:57.250,0:09:01.180
Great Plains in the country who also

0:08:59.140,0:09:04.660
experienced it a different way so in the

0:09:01.180,0:09:06.070
city a lot of the suffering was coming

0:09:04.660,0:09:10.560
from the fact that the stock market

0:09:06.070,0:09:10.560
crashed and the bank started to fail and

0:09:11.580,0:09:15.810
yeah there is no food to because you

0:09:13.500,0:09:18.510
can’t grow food in the city so then

0:09:15.810,0:09:20.910
there’s just so much and isn’t that like

0:09:18.510,0:09:23.519
a huge like homeless yeah a lot of

0:09:20.910,0:09:25.800
people because you let me see if I can

0:09:23.519,0:09:29.010
explain this very eloquently but yeah a

0:09:25.800,0:09:31.829
lot of people similar to lik what our

0:09:29.010,0:09:35.790
economy worried about today when the

0:09:31.829,0:09:38.880
banks failed okay so people go to the

0:09:35.790,0:09:41.760
beach and they take out like loans on

0:09:38.880,0:09:44.040
credit to go invest into the stock

0:09:41.760,0:09:47.459
market the stock market kept going up

0:09:44.040,0:09:49.649
and it was over evaluated so once

0:09:47.459,0:09:52.470
eventually it started to slow down and

0:09:49.649,0:09:54.600
then we had the like a crash it’s called

0:09:52.470,0:09:56.310
the black Tuesday crash and that was

0:09:54.600,0:09:59.730
just when it dropped like something like

0:09:56.310,0:10:03.360
23 points don’t call me on that and from

0:09:59.730,0:10:05.790
then the way economies work is like it

0:10:03.360,0:10:09.060
contracts when consumer spending slows

0:10:05.790,0:10:10.980
down so everyone whose money’s were in

0:10:09.060,0:10:12.870
like whose money is in the stock market

0:10:10.980,0:10:16.770
let’s say you bought a stock at like 100

0:10:12.870,0:10:18.810
and once it crashes it goes down to 50

0:10:16.770,0:10:20.550
so now you’re at a loss so then everyone

0:10:18.810,0:10:22.320
starts pulling their money out because

0:10:20.550,0:10:25.709
you took out let’s say you took out like

0:10:22.320,0:10:27.959
$100 on a loan to invest and now it’s

0:10:25.709,0:10:31.680
going down so you don’t even have enough

0:10:27.959,0:10:34.290
money to pay back like the principle of

0:10:31.680,0:10:36.029
what you borrowed is that also the same

0:10:34.290,0:10:39.600
thing that happened in like the 2008

0:10:36.029,0:10:42.540
financial like similarly similar I think

0:10:39.600,0:10:47.250
the 2008 financial crisis was with it

0:10:42.540,0:10:48.660
was like a crappy mortgage yeah they

0:10:47.250,0:10:50.760
were like agreeing to loan out to people

0:10:48.660,0:10:53.010
who weren’t like should not have been

0:10:50.760,0:10:57.510
given those loans that’s for another

0:10:53.010,0:10:58.680
episode but uh yeah so a stock market

0:10:57.510,0:11:00.510
crashes and then people start to panic

0:10:58.680,0:11:02.490
and pull their money out more and then

0:11:00.510,0:11:04.980
the market will crash more and that’s

0:11:02.490,0:11:06.779
what we’re seeing today with the stock

0:11:04.980,0:11:08.930
market continuing to crash on that

0:11:06.779,0:11:11.430
initial first crash because unemployment

0:11:08.930,0:11:11.970
like skyrocketed and businesses are

0:11:11.430,0:11:13.860
shutting down

0:11:11.970,0:11:15.540
people are not spending as much people

0:11:13.860,0:11:17.910
pull their money out of the stock market

0:11:15.540,0:11:20.250
so they can hold on to liquid cash and

0:11:17.910,0:11:22.770
not lose any value in that and then

0:11:20.250,0:11:25.260
because there’s less money in the market

0:11:22.770,0:11:26.850
prices go down even further

0:11:25.260,0:11:31.230
and more people panic and more people

0:11:26.850,0:11:33.540
pull money out so yeah it’s a bad it’s a

0:11:31.230,0:11:34.890
really bad cycle so because of that

0:11:33.540,0:11:37.310
people are losing these monies they

0:11:34.890,0:11:41.040
can’t their money unemployment

0:11:37.310,0:11:43.950
skyrockets because businesses are

0:11:41.040,0:11:45.660
starting to fail two banks start to

0:11:43.950,0:11:48.150
close down because they can’t even

0:11:45.660,0:11:50.730
they’ve loaned out all this money and no

0:11:48.150,0:11:53.360
one has the money like it’s not there

0:11:50.730,0:11:55.200
anymore like right like everyone has I

0:11:53.360,0:11:56.610
don’t even know where went it’s just

0:11:55.200,0:11:59.510
gone like everything got to be valued

0:11:56.610,0:11:59.510
and then

0:11:59.930,0:12:04.310
what else happened oh yeah and then you

0:12:01.940,0:12:06.290
do fall on your mortgage and get

0:12:04.310,0:12:08.210
foreclosed you lose your home so a lot

0:12:06.290,0:12:09.740
of people were straight up homeless

0:12:08.210,0:12:11.960
there’s emergence of things like

0:12:09.740,0:12:14.720
Hoovervilles which was named after

0:12:11.960,0:12:17.240
President Hoover at the time from Annie

0:12:14.720,0:12:18.260
that’s from Annie I saw okay then now

0:12:17.240,0:12:24.170
that definitely wasn’t a Great

0:12:18.260,0:12:28.670
Depression Herbert Hoover I think yeah

0:12:24.170,0:12:31.790
so that was going on and so that’s a

0:12:28.670,0:12:33.620
city situation the farm situation for

0:12:31.790,0:12:37.459
people in rural areas we’re going

0:12:33.620,0:12:39.589
through a kind of an epilogue ecological

0:12:37.459,0:12:42.020
turmoil because there was a drought that

0:12:39.589,0:12:44.120
had already been starting in the 20s the

0:12:42.020,0:12:45.620
during the Roaring Twenties

0:12:44.120,0:12:49.220
just hadn’t rained a lot in the Great

0:12:45.620,0:12:52.279
Plains area also at the end of the civil

0:12:49.220,0:12:54.470
war there was a lot of initiative for

0:12:52.279,0:12:58.070
people to move out west because they

0:12:54.470,0:12:59.930
were promised plots of land which I

0:12:58.070,0:13:01.790
don’t know if you can do that anyways

0:12:59.930,0:13:04.250
but they did it and so people are moving

0:13:01.790,0:13:06.260
West into like this unknown territory

0:13:04.250,0:13:08.839
and they’re trying to farm like regular

0:13:06.260,0:13:10.760
and in they usually didn’t really

0:13:08.839,0:13:12.260
understand the environment of the Great

0:13:10.760,0:13:13.820
Plains when they moved out and they’re

0:13:12.260,0:13:16.459
trying to farm like they would have

0:13:13.820,0:13:20.779
closer to like the East Coast and like

0:13:16.459,0:13:22.220
maybe Ohio Midwest area and with prairie

0:13:20.779,0:13:24.080
grass people don’t realize that like

0:13:22.220,0:13:28.670
prairie grass roots are actually like 5

0:13:24.080,0:13:30.709
to 15 feet long and they hold in yeah so

0:13:28.670,0:13:33.350
all of that soil was actually like the

0:13:30.709,0:13:35.570
topsoil was very like dusty and fine and

0:13:33.350,0:13:39.200
so when you pull out that prairie grass

0:13:35.570,0:13:42.170
all of the topsoil is like softer yeah

0:13:39.200,0:13:43.310
and I they just really didn’t understand

0:13:42.170,0:13:46.430
how to farm with that type of

0:13:43.310,0:13:49.459
environment so because of all of that in

0:13:46.430,0:13:52.430
addition to innovations and technology

0:13:49.459,0:13:55.220
which made farming easier so there was

0:13:52.430,0:13:56.959
an overproduction in crops then the

0:13:55.220,0:13:58.550
price of road is there so much would

0:13:56.959,0:14:01.100
happen the price of produce that are to

0:13:58.550,0:14:02.779
fall so now farmers aren’t able to even

0:14:01.100,0:14:05.990
make a profit because there’s an

0:14:02.779,0:14:10.040
overproduction in agriculture Wow

0:14:05.990,0:14:11.570
so yeah you keep sorry so it’s not like

0:14:10.040,0:14:13.540
a famine like they didn’t run out of

0:14:11.570,0:14:15.310
food so you have too much

0:14:13.540,0:14:17.770
well it gets to that because they had

0:14:15.310,0:14:20.860
too much food stock prices or not stock

0:14:17.770,0:14:23.140
prices agriculture prices fall down like

0:14:20.860,0:14:26.770
for your produce and then because of

0:14:23.140,0:14:29.470
that lack of income from like a surplus

0:14:26.770,0:14:31.690
they try to plant more and they dig up

0:14:29.470,0:14:34.210
more of the topsoil and then they

0:14:31.690,0:14:35.710
basically destroy this like farming

0:14:34.210,0:14:39.700
ground I don’t think they knew what crop

0:14:35.710,0:14:42.370
rotation was and that’s how you get all

0:14:39.700,0:14:44.980
of this like loose dirt and eventually

0:14:42.370,0:14:46.780
there was what they call the Dust Bowl

0:14:44.980,0:14:48.730
which is just like really really big

0:14:46.780,0:14:50.730
winds that picked up all this dirt

0:14:48.730,0:14:52.990
there’s something like 10,000 feet high

0:14:50.730,0:14:54.520
like you couldn’t see in front of your

0:14:52.990,0:14:57.040
face just because the dust was so thick

0:14:54.520,0:14:59.710
people had to wear ropes to like walk

0:14:57.040,0:15:03.520
outside could look and see they would

0:14:59.710,0:15:07.240
get lost oh my god what are you like

0:15:03.520,0:15:12.580
what if you have to like farm also like

0:15:07.240,0:15:14.410
I can’t exactly right right and for the

0:15:12.580,0:15:16.870
apocalypse up and then also the economy

0:15:14.410,0:15:18.580
is catching like I would literally think

0:15:16.870,0:15:20.850
the world was coming to an end yeah

0:15:18.580,0:15:22.900
basically people are getting hit

0:15:20.850,0:15:26.430
differently in different parts of the

0:15:22.900,0:15:30.010
area and you’re right that the New Deal

0:15:26.430,0:15:31.150
was a part of the solution but something

0:15:30.010,0:15:33.940
that people also don’t realize is like

0:15:31.150,0:15:37.200
the world war two actually is what a lot

0:15:33.940,0:15:40.060
of economists agree is the proper end to

0:15:37.200,0:15:42.400
the Great Depression which is kind of

0:15:40.060,0:15:44.230
unfortunate that like this we needed

0:15:42.400,0:15:46.300
another war to kind of pull us out of

0:15:44.230,0:15:50.380
that but World War two actually provided

0:15:46.300,0:15:52.150
a lot of jobs for unemployed men and

0:15:50.380,0:15:53.860
that helped stimulate our economy but

0:15:52.150,0:15:59.560
the New Deal did do a lot of good stuff

0:15:53.860,0:16:00.850
as well yeah so what do you do like what

0:15:59.560,0:16:01.660
do you think was the best thing to come

0:16:00.850,0:16:06.300
out of the New Deal

0:16:01.660,0:16:09.310
do you remember wasn’t it like all these

0:16:06.300,0:16:11.540
infrastructure projects like across the

0:16:09.310,0:16:13.699
u.s.

0:16:11.540,0:16:15.560
and then because like all these new

0:16:13.699,0:16:16.850
projects were being started basically

0:16:15.560,0:16:19.040
like there are all these jobs that were

0:16:16.850,0:16:22.759
being created it was all just about like

0:16:19.040,0:16:24.769
trying to create jobs right yeah yeah

0:16:22.759,0:16:27.589
yeah well they had like a lot more

0:16:24.769,0:16:30.230
protections that came up I think I’m not

0:16:27.589,0:16:34.339
a huge fan of Franklin Delano but I do

0:16:30.230,0:16:41.449
think that yeah Japanese exclusion act

0:16:34.339,0:16:43.370
doesn’t sit well with me yeah but he did

0:16:41.449,0:16:46.430
do a really really good job and also too

0:16:43.370,0:16:49.339
I want to look into who like his

0:16:46.430,0:16:54.620
economic team was because these a lot of

0:16:49.339,0:16:56.209
the new changes in the laws that help

0:16:54.620,0:16:59.000
stimulate the economy are really

0:16:56.209,0:17:00.500
brilliant and I am intrigued as to why

0:16:59.000,0:17:01.810
they didn’t think about like

0:17:00.500,0:17:07.669
implementing things like this before

0:17:01.810,0:17:09.110
yeah but on the bright side a lot of

0:17:07.669,0:17:10.850
really good things that we have today

0:17:09.110,0:17:12.679
came out of the Great Depression so even

0:17:10.850,0:17:17.419
though the Great Depression was like

0:17:12.679,0:17:19.130
hell on earth I think that good things

0:17:17.419,0:17:20.900
come out of it and I hope that with our

0:17:19.130,0:17:23.449
current situation good things also

0:17:20.900,0:17:25.130
continue to come out of this such as

0:17:23.449,0:17:28.760
maybe like health care reform and all

0:17:25.130,0:17:30.400
the problems that were uncovering but to

0:17:28.760,0:17:35.840
go into a little more detail about

0:17:30.400,0:17:38.120
Franklin dough knows like new deals he

0:17:35.840,0:17:39.650
had two new deals so the first one it’s

0:17:38.120,0:17:44.000
called like his hundred days

0:17:39.650,0:17:45.290
yeah the first hundred days yeah yeah so

0:17:44.000,0:17:48.020
that’s when that was like the premise of

0:17:45.290,0:17:50.570
how he got elected and when which was in

0:17:48.020,0:17:54.169
1933 he beat Herbert Hoover whom

0:17:50.570,0:17:56.419
everyone hated and then yeah so when

0:17:54.169,0:17:57.830
Franklin Delano came and Franklin

0:17:56.419,0:18:03.200
Roosevelt I’m gonna walk home Franklin

0:17:57.830,0:18:05.450
Delano yeah FDR that’s a better one okay

0:18:03.200,0:18:07.820
so F here comes in and within those

0:18:05.450,0:18:09.860
first hundred days he basically passes

0:18:07.820,0:18:13.179
all these executive orders and gets

0:18:09.860,0:18:16.100
these laws passed to Congress to

0:18:13.179,0:18:18.350
stimulate the economy really quickly one

0:18:16.100,0:18:20.150
of which was the emergency Banking Act

0:18:18.350,0:18:24.110
which was really important as a banking

0:18:20.150,0:18:25.040
reform so when they reopen they have to

0:18:24.110,0:18:30.020
be monitored

0:18:25.040,0:18:32.210
I the federal Treasury which is a it’s

0:18:30.020,0:18:35.930
really good because I don’t know how

0:18:32.210,0:18:37.160
these banks were not getting monitored

0:18:35.930,0:18:40.310
by that because that was a problem they

0:18:37.160,0:18:44.260
were loaning out to people money that

0:18:40.310,0:18:46.490
like over loaning yeah and that’s why

0:18:44.260,0:18:49.310
that was kind of like over stimulation

0:18:46.490,0:18:51.260
of the economy so before the New Deal

0:18:49.310,0:18:55.010
there was like virtually like no

0:18:51.260,0:18:57.320
restrictions on banks or like it was

0:18:55.010,0:18:59.780
just maybe not I think very little

0:18:57.320,0:19:01.400
restrictions on banks and how they were

0:18:59.780,0:19:03.800
loaning out and they weren’t being

0:19:01.400,0:19:05.600
monitored so the way I’m understanding

0:19:03.800,0:19:08.630
it is that banks for being our

0:19:05.600,0:19:10.430
businesses but now they’re monitored by

0:19:08.630,0:19:15.110
governments as well because it’s like

0:19:10.430,0:19:16.490
wealth management but yeah thanks I

0:19:15.110,0:19:17.900
guess we’re kinda just like run by their

0:19:16.490,0:19:20.750
own rules there’s very little laws

0:19:17.900,0:19:24.980
winning what they couldn’t could not do

0:19:20.750,0:19:28.010
and then the next thing was the

0:19:24.980,0:19:31.040
Securities Act of 1933 which he passed

0:19:28.010,0:19:33.230
and so it was in order to help the

0:19:31.040,0:19:35.510
prevent the stock market like another

0:19:33.230,0:19:38.540
stock market crash so like I said

0:19:35.510,0:19:40.520
earlier um everyone thought that the

0:19:38.540,0:19:43.040
stocks were just gonna keep going up up

0:19:40.520,0:19:44.360
and up when really companies who were

0:19:43.040,0:19:47.720
being publicly traded weren’t being

0:19:44.360,0:19:50.510
honest with their like the figures and

0:19:47.720,0:19:53.660
so it was more of an illusion that

0:19:50.510,0:19:57.980
everything was doing really well so the

0:19:53.660,0:19:59.780
Securities Act of 1933 like required

0:19:57.980,0:20:02.840
that publicly traded companies had to

0:19:59.780,0:20:04.520
provide accurate information so this is

0:20:02.840,0:20:09.860
an example of how the government started

0:20:04.520,0:20:11.300
to get more involved in businesses which

0:20:09.860,0:20:13.700
I’m someone I know that way people have

0:20:11.300,0:20:15.140
like even today right like you have

0:20:13.700,0:20:17.030
these big corporations like Amazon

0:20:15.140,0:20:22.190
Google and a lot of them are against

0:20:17.030,0:20:23.990
government involvement for reasons of I

0:20:22.190,0:20:27.560
don’t know if it’s like Red Scare like

0:20:23.990,0:20:29.390
communist scares or whatever but you do

0:20:27.560,0:20:31.100
I think that you do need some government

0:20:29.390,0:20:32.750
involvement and that’s how we see like

0:20:31.100,0:20:34.430
the biggest churn of the Great

0:20:32.750,0:20:36.500
Depression of my eyes was that the

0:20:34.430,0:20:38.740
government got more involved with

0:20:36.500,0:20:41.559
protecting the people

0:20:38.740,0:20:45.720
and yeah and monitoring businesses like

0:20:41.559,0:20:48.970
that so and then you were right about

0:20:45.720,0:20:50.200
the Public Works Administration the

0:20:48.970,0:20:51.640
civil Conservation Corps it’s

0:20:50.200,0:20:55.150
agriculture just in administrations

0:20:51.640,0:20:59.920
these are all initiatives that FDR

0:20:55.150,0:21:03.400
passed to help stimulate jobs for people

0:20:59.920,0:21:05.470
and so with that like the civil Civilian

0:21:03.400,0:21:07.030
Conservation Corp did a lot of good work

0:21:05.470,0:21:09.070
with like planting trees and

0:21:07.030,0:21:12.340
environmental conservation which helped

0:21:09.070,0:21:15.100
with the Dust Bowl so that was an

0:21:12.340,0:21:17.980
increase in like our care for the

0:21:15.100,0:21:20.620
environment and just like developing

0:21:17.980,0:21:22.390
rural parts of America they’re all these

0:21:20.620,0:21:25.000
jobs to build roads and bridges and

0:21:22.390,0:21:28.120
schools and hospitals so and even dams

0:21:25.000,0:21:33.460
which helped with like small generations

0:21:28.120,0:21:35.170
of energy for places like Tennessee and

0:21:33.460,0:21:36.280
then this one because you know I’m in

0:21:35.170,0:21:39.220
the middle of like shopping for houses

0:21:36.280,0:21:41.170
there’s a administration it’s called the

0:21:39.220,0:21:43.330
Federal Housing Administration and the

0:21:41.170,0:21:45.160
homeowners Loan Corporation so that

0:21:43.330,0:21:47.800
helps people refinance their mortgages

0:21:45.160,0:21:50.470
and keep their homes and today the FHA

0:21:47.800,0:21:52.690
still exists for low-income people we

0:21:50.470,0:21:55.170
want to take out loans so they offer you

0:21:52.690,0:21:57.940
like lower down payments on houses and

0:21:55.170,0:22:00.720
it like gives more people an opportunity

0:21:57.940,0:22:03.190
to actually like have a mortgage

0:22:00.720,0:22:06.090
yeah and that’s still exists today so

0:22:03.190,0:22:06.090
that came out of the Great Depression

0:22:06.210,0:22:10.990
mm-hmm and also to like Federal

0:22:08.980,0:22:13.090
Emergency Relief Administration came out

0:22:10.990,0:22:15.100
of it and that would just provide help

0:22:13.090,0:22:17.650
for like the unemployed and education on

0:22:15.100,0:22:21.040
how to get jobs soup kitchens came out

0:22:17.650,0:22:24.850
to that like blankets for donation all

0:22:21.040,0:22:27.460
these things like more social policies

0:22:24.850,0:22:28.929
of like helping the poor came out of the

0:22:27.460,0:22:31.690
Great Depression because people are

0:22:28.929,0:22:32.980
suffering so badly oh yeah yeah yeah

0:22:31.690,0:22:35.640
like we’re there I don’t know if you

0:22:32.980,0:22:38.320
know like like what am I like a

0:22:35.640,0:22:39.429
Salvation Army like all these like

0:22:38.320,0:22:41.140
charities although I don’t know if

0:22:39.429,0:22:43.960
though it’s like necessarily originated

0:22:41.140,0:22:48.990
in the US but yeah I don’t know I don’t

0:22:43.960,0:22:51.879
know if they let’s check it out but yeah

0:22:48.990,0:22:53.589
yeah I feel like like in my head like

0:22:51.879,0:22:55.179
like my impression is that like kinda

0:22:53.589,0:22:56.709
before this like everyone is kind of

0:22:55.179,0:22:58.419
like every man for themselves and then

0:22:56.709,0:22:59.709
like after the Great Depression or like

0:22:58.419,0:23:01.179
during the Great Depression and it was

0:22:59.709,0:23:04.329
kind of like oh we need to like help our

0:23:01.179,0:23:09.999
fellow Americans and like focus more on

0:23:04.329,0:23:12.129
that agreed yeah I think that it

0:23:09.999,0:23:14.529
definitely which like not to get into

0:23:12.129,0:23:17.319
like capitalism versus communism but I

0:23:14.529,0:23:19.179
do think that the Great Depression when

0:23:17.319,0:23:23.379
like the country is suffering you have

0:23:19.179,0:23:25.359
to change the way that government is

0:23:23.379,0:23:28.259
involved and you have to take care of

0:23:25.359,0:23:32.109
the people because everyone’s suffering

0:23:28.259,0:23:33.809
when you let like the majority of people

0:23:32.109,0:23:41.229
stay unemployed you know what I mean

0:23:33.809,0:23:45.159
yeah so yeah lots of good things came

0:23:41.229,0:23:49.649
out yeah hopefully good things will come

0:23:45.159,0:23:49.649
out of what’s going on right now and

0:23:50.009,0:23:54.639
yeah oh and then it’s part of the second

0:23:52.899,0:23:56.229
new deal so he had to we had like

0:23:54.639,0:23:57.639
one-year deal in the second new deal

0:23:56.229,0:23:59.859
the first new deal and the second new

0:23:57.639,0:24:01.929
deal and the first new deal actually

0:23:59.859,0:24:04.509
it’s kind of unfortunate but his new

0:24:01.929,0:24:06.699
deals didn’t really do a lot to help

0:24:04.509,0:24:08.619
would be kind like I obviously in

0:24:06.699,0:24:10.719
hindsight they did a lot with moving us

0:24:08.619,0:24:12.999
forward as a developed nation but as far

0:24:10.719,0:24:16.029
as getting people out of poverty not a

0:24:12.999,0:24:18.369
lot happy with that which is why he had

0:24:16.029,0:24:21.039
to pass a second new deal and that was

0:24:18.369,0:24:23.440
where we had social security and that

0:24:21.039,0:24:26.609
would help like assist the elderly and

0:24:23.440,0:24:26.609
like orphans

0:24:28.469,0:24:34.599
Wow so social security wasn’t

0:24:31.869,0:24:36.069
established until the New Deal I didn’t

0:24:34.599,0:24:38.169
realize that yeah the second year deal

0:24:36.069,0:24:41.679
not even the first new deal what looks

0:24:38.169,0:24:44.109
like the time period in between so the

0:24:41.679,0:24:47.339
first New Deal was launched in 1933 and

0:24:44.109,0:24:50.020
then the second New Deal was launched in

0:24:47.339,0:24:51.910
1935

0:24:50.020,0:24:55.030
and then a lot of the second New Deal

0:24:51.910,0:25:01.090
handled more with like the fair labor

0:24:55.030,0:25:02.620
acts FDIC like Federal Deposit I say

0:25:01.090,0:25:04.270
there’s a lot of terms in here and I

0:25:02.620,0:25:06.880
wish I could explain it why I feel like

0:25:04.270,0:25:08.980
Great Depression is such a big topic no

0:25:06.880,0:25:12.580
it’s a pretty complex subject also like

0:25:08.980,0:25:15.880
at this time is there so is there any

0:25:12.580,0:25:17.470
laws in place for like child labor or

0:25:15.880,0:25:18.280
like insuring like safety in the

0:25:17.470,0:25:20.550
workplace

0:25:18.280,0:25:24.010
anything on the sort I don’t know yeah

0:25:20.550,0:25:26.470
well so I mean like in this time like

0:25:24.010,0:25:30.160
today of course there’s a child labor

0:25:26.470,0:25:33.100
lies well yeah yeah but they did start

0:25:30.160,0:25:35.770
like in 1938 so that was the Fair Labor

0:25:33.100,0:25:37.720
Standards Act and then that limited

0:25:35.770,0:25:39.850
workers to like a maximum workweek

0:25:37.720,0:25:41.840
created a minimum wage and hour law

0:25:39.850,0:25:44.779
child labor

0:25:41.840,0:25:47.270
Wow oh and then even you know not a

0:25:44.779,0:25:49.970
United States Housing Authority in 1937

0:25:47.270,0:25:52.070
tore down slums built new better housing

0:25:49.970,0:25:56.799
for the homeless a lot of socialists I

0:25:52.070,0:25:58.970
think FDR was a socialist with me let me

0:25:56.799,0:26:01.909
policies feel like it but a lot of

0:25:58.970,0:26:05.659
socialists like reform kind of came out

0:26:01.909,0:26:10.840
of this I feel like me oh yeah what

0:26:05.659,0:26:13.669
after you maybe yeah they it says I

0:26:10.840,0:26:15.080
think it’s debated I don’t think he like

0:26:13.669,0:26:16.730
claimed him I don’t think it was a

0:26:15.080,0:26:18.590
self-proclaimed socialist but I think

0:26:16.730,0:26:22.370
they’re saying that a lot of his

0:26:18.590,0:26:28.520
policies were like more progressive and

0:26:22.370,0:26:33.770
yeah interesting but yeah that’s kind of

0:26:28.520,0:26:36.740
like overarching what good came out of

0:26:33.770,0:26:39.110
it yeah that’s like yes I think it’s

0:26:36.740,0:26:40.940
good to learn about the good stuff that

0:26:39.110,0:26:42.679
comes out about it cuz whenever I think

0:26:40.940,0:26:44.720
about the Great Depression like whenever

0:26:42.679,0:26:46.159
we learned about it in class I feel like

0:26:44.720,0:26:48.320
we just watch documentaries about like

0:26:46.159,0:26:49.429
all the suffering and and then it’s like

0:26:48.320,0:26:51.200
they’re they’re like all here’s a new

0:26:49.429,0:26:53.270
deal but like I feel like I didn’t

0:26:51.200,0:26:56.659
really look into the specific policies

0:26:53.270,0:26:59.090
and I don’t know it’s I think it’s

0:26:56.659,0:27:00.799
encouraging to see like how much we

0:26:59.090,0:27:03.770
learn from our mistakes and how we were

0:27:00.799,0:27:06.260
able to like quickly implement like all

0:27:03.770,0:27:08.779
these new laws and regulations to help

0:27:06.260,0:27:11.480
prevent something like this from

0:27:08.779,0:27:13.279
happening again so you know even though

0:27:11.480,0:27:17.390
right now we’re entering a recession

0:27:13.279,0:27:19.250
like I don’t know hopefully we’ll be

0:27:17.390,0:27:20.779
able to implement like change quickly

0:27:19.250,0:27:22.309
and likely at least like it’s

0:27:20.779,0:27:26.690
encouraging to see like how we learn

0:27:22.309,0:27:29.240
from our mistakes before I agree and

0:27:26.690,0:27:33.409
it’s like unfortunate but really hard

0:27:29.240,0:27:34.820
times do promote change faster right

0:27:33.409,0:27:37.130
like we’ve been having issues with the

0:27:34.820,0:27:38.990
environment for a while we’ve been

0:27:37.130,0:27:43.399
having issues with like our health care

0:27:38.990,0:27:45.140
system for lord knows how long yeah yeah

0:27:43.399,0:27:48.169
now it’s like forcing it forces everyone

0:27:45.140,0:27:50.419
to like face the realities and like sit

0:27:48.169,0:27:53.450
down and all have a discussion and yeah

0:27:50.419,0:27:55.740
definitely and then there’s one more

0:27:53.450,0:27:57.690
thing Oh universal basic income

0:27:55.740,0:28:02.730
that’s been like a debated topic have

0:27:57.690,0:28:03.510
you heard of that um not really okay

0:28:02.730,0:28:07.159
yeah that’s fine

0:28:03.510,0:28:09.840
so Andrew yang who was one of the

0:28:07.159,0:28:12.539
candidates for the Democratic nomination

0:28:09.840,0:28:16.140
was that was like his whole premise was

0:28:12.539,0:28:17.580
a universal basic income so basically

0:28:16.140,0:28:20.789
it’s just that the government will

0:28:17.580,0:28:23.190
provide and like X amount of money to

0:28:20.789,0:28:26.610
every single person within the country

0:28:23.190,0:28:28.409
and so the theory of that and like Mark

0:28:26.610,0:28:29.940
Zuckerberg supports this as well the

0:28:28.409,0:28:32.880
theory of that is that it will allow

0:28:29.940,0:28:35.010
people to be more creative and take on

0:28:32.880,0:28:37.710
different pursuits because they have

0:28:35.010,0:28:39.840
their basic needs met with basic

0:28:37.710,0:28:43.080
Universal income and so with the

0:28:39.840,0:28:44.669
stimulus check that got passed and

0:28:43.080,0:28:47.700
everyone’s getting like their $1200

0:28:44.669,0:28:49.200
checks that’s supposed to be like it’s

0:28:47.700,0:28:50.610
like it’s kind of like a test of like a

0:28:49.200,0:28:53.669
universal basic income it’s like the

0:28:50.610,0:28:55.860
government providing us with our basic

0:28:53.669,0:28:58.049
needs and when those are met then you

0:28:55.860,0:28:59.730
allow people to be more creative and

0:28:58.049,0:29:01.950
innovative and possibly start more

0:28:59.730,0:29:03.390
entrepreneurial things which opens up

0:29:01.950,0:29:06.179
the doors for more jobs and innovation

0:29:03.390,0:29:10.380
for the country so that’s like the

0:29:06.179,0:29:10.950
theory behind it Wow yeah it’s really

0:29:10.380,0:29:13.289
interesting

0:29:10.950,0:29:17.460
yeah and that could be how things change

0:29:13.289,0:29:19.529
too with this situation also health

0:29:17.460,0:29:21.510
standard I think New York finally shut

0:29:19.529,0:29:25.169
down to like clean their subways

0:29:21.510,0:29:27.029
overnight yeah well now did that take so

0:29:25.169,0:29:30.059
long like the health standards are so

0:29:27.029,0:29:31.529
low that’s okay that’s like one of the

0:29:30.059,0:29:35.309
things I’ve been learning about like

0:29:31.529,0:29:37.140
even like washing my hands like I I was

0:29:35.309,0:29:39.000
like wow I I mean I wash my hands

0:29:37.140,0:29:41.010
frequently before this but now I’m like

0:29:39.000,0:29:43.230
I wasn’t seeing you like happy birthday

0:29:41.010,0:29:46.919
like every washing my hands and then

0:29:43.230,0:29:49.679
yeah you think about like bleh I guess

0:29:46.919,0:29:52.110
like restaurants and like oh like food

0:29:49.679,0:29:53.940
services and yeah public transportation

0:29:52.110,0:29:55.970
and now I’m just like anytime I step

0:29:53.940,0:29:58.350
outside I’m just like hyper aware of how

0:29:55.970,0:30:00.450
Jeremy everything is and so it’s like

0:29:58.350,0:30:04.049
maybe you reflect and be like how how

0:30:00.450,0:30:06.179
did we service like before yeah no I

0:30:04.049,0:30:08.429
agree I feel like I wasn’t watching my

0:30:06.179,0:30:09.510
hands properly like I didn’t know how to

0:30:08.429,0:30:12.570
wash my hands

0:30:09.510,0:30:14.340
something I’d like yeah one like all

0:30:12.570,0:30:15.690
these videos like surface but like how

0:30:14.340,0:30:17.040
to properly wash your hands I’m like oh

0:30:15.690,0:30:18.240
my gosh how do people not know how to

0:30:17.040,0:30:21.330
wash your hands and then you’re like oh

0:30:18.240,0:30:23.730
I definitely like I’m not I was not

0:30:21.330,0:30:26.580
watching you for as long as I am now all

0:30:23.730,0:30:29.910
right I’ll just like weird like basic

0:30:26.580,0:30:32.010
hygiene and my hygiene will increase and

0:30:29.910,0:30:35.340
like also just like the way we work to

0:30:32.010,0:30:37.260
like work from home yeah there’s so many

0:30:35.340,0:30:39.420
jobs that you can do from home and real

0:30:37.260,0:30:39.930
estate is so expensive that’s right

0:30:39.420,0:30:42.480
everyone

0:30:39.930,0:30:43.710
yeah I’ve been talking to a lot of

0:30:42.480,0:30:47.430
people about that too about just how

0:30:43.710,0:30:49.170
like the whole office situation will

0:30:47.430,0:30:51.570
like change in the whole workplace will

0:30:49.170,0:30:53.130
change because like you don’t like there

0:30:51.570,0:30:55.650
are so many jobs or you don’t need to be

0:30:53.130,0:30:57.090
in a physical office and like you could

0:30:55.650,0:30:59.820
be working from home and then yet you’re

0:30:57.090,0:31:02.750
saving so much I’m real estate and yeah

0:30:59.820,0:31:05.820
yeah lowers commuting costs as well

0:31:02.750,0:31:09.720
we’re entering a new era know it’ll be

0:31:05.820,0:31:11.430
really interesting to see and optimistic

0:31:09.720,0:31:14.780
felt like a lot of good things will come

0:31:11.430,0:31:14.780
out of it yeah