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Comparisons are regularly raised nowadays regarding America during the Great Depression of the 1930s and the current economic crisis affecting America and the rest of the world. I'm interested in hearing comparisons and contrasts as to the similarities and differences between the two eras.
We'll have to wait a couple of years to have the answer. At the beginning of the Great Depression only those with money in stock market were impacted. A few years later 1/3 the nation lacked jobs and thousands had to stand in soup kitchen lines to eat. Hopefully in this depression things won't get so bad.
I think this is going to end up worse than the great depression. I am afraid that it is going to get much worse before it gets any better. The world economy is in line for a huge correction that is barely getting started. It will probably take us ten to fifteen years to get past this one and I am very curious to see how this will all pan out. the calls for some kind of socialism will only get more strident as the crisis continues.
I would argue that the underlying economic forces of the world are still strong and that the current situation would otherwise play itself out without too much delay. Problem is all the socialist moves made on the part of governments as means to artificially manipulate the economy. The government would do well to let dying businesses die….and also to avoid spending money on “green” programs.
I agree, but arguments like ours fall on deaf ears. Those in power and the idiots that get elected think throwing good money after bad is the way to go. I wonder if the Dollar will get as worthless as the Confederacy's did. The current effort to monetize the debt will do nothing but undermine the foundations of the dollar. Printing money is not the answer. I am waiting for someone in congress to seriously propose reintroducing either the silver or gold standard as a way of guaranteeing the dollar's stability.
I think Nixon was the last president to take us off the gold standard, some economist predict precious metals will be the next bubble to bust. I'm hearing lumber and farm products will be the best investment looking ahead. One difference between the Great Depression and today's crisis is that the stock market wasn't regulated so guys like Joe Kennedy could manipulate the market, all for personal gain. In a stark contrast today, the market and commodities are strickly regulated, so guys like Barney Frank can manipulate the financial markets, all for political gain. Uh Hmm >:(
Investopedia Says:The use of the gold standard would mark the first use of formalized exchange rates in history. However, the system was flawed because countries needed to hold large gold reserves in order to keep up with the volatile nature of supply and demand for currency. After World War II, a modified version of the gold standard monetary system, the Bretton Woods monetary system, was created as its successor. This successor system was initially successful, but because it also depended heavily on gold reserves, it was abandoned in 1971 when U.S president Nixon “closed the gold window”.from answers.com
Here is a short article and interview with Marc Faber, he was screaming about Greenspan lowering intrest rates in 2003! http://www.tuccille.com/blog/2009/02/marc-faber-calls-stimulus-package-path.html
Similarity: the same propaganda used against the rich that was believed by the masses during the early 30's is being used again now.I'm waiting for the Obama administration to come up with a new slogan that is equivalent to “soak the rich.”
Seems to me that the WPA was meant to help boost morale while engaging in public works that were at least somewhat beneficial to the public at large. Today, I don't know that the stimulus is based on this mentality. Rather, it's something like – give gobs of money out to select businesses and organizations and citizens who will hopefully spend it and spur economic growth. So in the 30s the government still expected something in return for its payments; today, there is no such expectation of anything in return (other than spending money). Could this recent effort be extremely dangerous by creating large-scale dependency on the government – one that would continue after the recession/depression is over?Am I wrong in my analysis?
You're not wrong! The things they are doling money out to now are not sustainable on their own, just like in the Depression. I think you said in another thread, the markets control the economy not the government.
Perhaps creating dependency on government payments is the goal rather than stimulating the economy. Also, would the currently unemployed actually work for something like the WPA? Lets not forget the average person's aversion to physical labor, that is why the Illegals are flooding the country and doing a large percentage of the manual labor in America. The average American feels that hard physical labor is beneath them.
Could someone please explain to me how summer jobs created by the stimulus actually help the economy?
Short term help, like a tourniquet. But once a tourniquet is removed the victim rapidly bleeds to death, the same will happen with the economy.
I don't even think it's short term. All this is is jobs created (allegedly) to help kids who have the summer off. Yeah, those high paying minimum wage jobs are sure going to help our nation's GDP grow. ::)
I don't even think it's short term. All this is is jobs created (allegedly) to help kids who have the summer off. Yeah, those high paying minimum wage jobs are sure going to help our nation's GDP grow. ::)
Might, however, instill some pride and apply a bit of work-ethic to our youth. Something that is often missing today (hint; I'm a former teacher)….
