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Victor Davis Hanson: Depression, Recession, Downturn—Whatever
pajamasmedia.com ^ | February 17, 2009 | Victor Davis Hanson

Posted on 02/18/2009 5:04:58 AM PST by Tolik

Ancient Wisdom

My grandfather once said something to me around 1970 that I have never forgotten. He was born in my house in 1890 (or rather, I in his)—twenty years after his grandmother built the present home. He farmed continuously without a day lost to sickness from 1908, when he graduated from the local high school (the same one my children and I went to—but, of course, not the same school either [but that is an entirely different story]), until 48 hours before he died in 1976.

He had plenty of stories about the Depression. It started for farmers, he said, really in the early 1920s, when the boom prices and easy credit of the immediate post-Great War years led to rapid expansion in the planting of trees and vines, more debt, and—well, we all now know the familiar story. By 1933 he said sixteen relatives were living in the house, and another ten or so in various barns and sheds (the farm was only 120 acres).

They ate, he said, communal meals, worked a communal garden and met up in the evening after completing assigned “chores.” (I remember as a child a canned fruit storage room with concrete walls in the shed with old jars with tape on them labeled ‘freestone peaches—1933′, red plums 1936′).

Sometimes he would get a telegraph message delivered to go down to the local train station to pick up another jobless second cousin or sister-in-law. This was pretty much standard, he told, me until 1941 and the onset on the war when the bad times abruptly ended, and suddenly non-perishable items like raisins were needed overseas, labor was short, and nearly all his male relatives, from 18-40, disappeared into uniform and went off to Europe and the Pacific. (My uncle Beldon was injured on the Philippines, Holt died right after Normandy (I saw his grave at Hamm), another uncle went to Alaska, my father and his cousin to the Pacific, and so on).

My maternal grandfather was a rather eccentric farmer (in the 1940s he re-mortgaged his farm, right at the tail end of the Depression, in order to send his daughters to Stanford University). As I look back at some 55 years on his land, I confess I’m beginning to think that I haven’t met too many wiser souls, who combined abstract learning with knowledge of the stars, winds, smells in the air, flight of birds and geese, natural sense of barometric pressures to predict weather or compare climate with years past. In any case, back to the Depression.

He would drive me around in the late 1960s and early 1970s in his1946 international pick-up and point out the grand rural Victorian homes, built around 1918-19 that had bankrupt the farmer-owners, point out the farmers and packers who in reprehensible fashion sorta, kinda stole Japanese land during the war (and those fewer who had helped save the farms for their interned owners), and explained how some farmers on very poor soil had survived the Depression, while others on rich loam had gone under (yes, of course, character and industriousness and acceptance of tragedy with both resignation and determination were the keys, he said to survival).

In whispers, he also mentioned on our rural drives the names of local grandees (this was, again 1970) whose fathers in the late 1920s had burned down their majestic homes or barns (and even their wooden raisin trays) to garner pre-Depression insurance cash coverage. (I though of Balzac’s “Behind every fortune lies a great crime”.)

But back to that one quote. He said—and although it has been almost 40 years ago I remember it verbatim—“I guess the Depression was not all that bad if you had a job”. Of course, he didn’t mean farming raisins, whose prices had crashed from around $300 a ton to about $30 (he later told me he had not made a profit from 1924 until 1942). Rather, he knew Post Office workers, teachers, and railroad people who had secure jobs with steady income. And as he tried to explain, while his income had dived by 90% and most of the packers and shippers had gone broke, others employed perhaps only took a 10% cut. And because suddenly everything from gas to food to rent was dirt-cheap, the 75% who had jobs survived in good fashion (“good” meaning far better than current conditions in the former Third World in Africa and Latin America). Of course, he mentioned that no one had any of the opportunities present in the 1970s, but his point was that there was more to the Depression than one thinks; and while he had suffered terribly not all those in town had.

I was reminded of all that the other day. I rode a bike by dozens of MacMansions in Fresno—all up for sale for about $400,000, way down from their original $700,000, and thought “They are still too high—who can come up with $80,000 cash for a down payment, and another $2,000 plus per month payment?”

Things seemed pretty bad as I counted over 100 ‘For Sale” signs in a mere five mile stretch. I collated my own status. The equity on the farm is way down. I figure I lost about the last 5 years of 401(k) contributions— omnis effusus labor as Virgil says of Orpheus in the Georgics or as my favorite singer Mark Knopfler sings: “And if it’s all for nothing. All the road running it’s been in vain.” The Tribune Media outlet for whom I write a weekly syndicated column has declared bankruptcy, and some of the payments have been reduced and metered through a federal bankruptcy judge. Invitations for both public speaking and free-lance writing are way down, and compensation is reduced. Book advances in New York are either nonexistent or depressed. We are facing many cuts here at the Hoover Institution, given the natural reduction in the endowment. Until recently I was up to well over $10,000 in owed money by various groups for whom I have written or spoken for, but who have not paid. Farm prices are going back down, and the rent (I now lease out my 45 acres) scarcely covers the taxes, irrigation fees, insurance, and infrastructure maintenance. Some members of my family are either out of work or worried they soon will be. So in some sense, whatever we call the downturn is very real.

Yet like 93% of work-age Americans I still have a job, and thus, as my grandfather reminded me of others in town, things for those still working are not catastrophic. Gas is way down—indeed the country is saving hundreds of billions of dollars in reduced oil importation fees as a barrel crashed from $150 to below $40 (some stimulus!). Interest rates are coming down. Food is lower. Propane and natural gas are cheaper. For those who can meet a $500 or so monthly payment, there are real steals on cars. I get phone solicitations to buy everything from washers to frozen steaks in bulk. I saw a used boat the other day on the way to the mountains whose ridiculously low price did not seem real? If any young people have jobs, housing is finally affordable—and getting cheaper.

So what are we in? Mostly a time of psychological depression and waiting—but hardly a depression as my grandfather knew it, when he once bragged to me that for two years they had eaten everything—poultry, eggs, milk, vegetables, fruit, juices—but bread and coffee from what they grew and raised.

What we are talking about is a reduction in excess, not mass deprivation. Our worries over foreclosure are really about that 5-10% of the home owning populace that came into their own, when ownership rates rose from about 58% of the population to over 62%, and who often bought homes too large under dubious circumstances, predicated on expectations of always rising equity.

So fat is the United States, that things can get a lot worse before we are back to 1933. My grandfather’s final advice as we would end these drives? “Be sure to get a job in town—or better yet two—just in case those times come back…”


TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: depression; recession; vdh; victordavishanson
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1 posted on 02/18/2009 5:04:58 AM PST by Tolik
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To: All
Don't miss Hanson's brilliant article from yesterday:  The Audacity of Irony “Hope and change” meet reality. The ironies bring us back to the unlamented days of Jimmy Carter.
 
2 posted on 02/18/2009 5:08:24 AM PST by Tolik
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To: neverdem; Lando Lincoln; quidnunc; .cnI redruM; SJackson; dennisw; monkeyshine; Alouette; ...


    Victor Davis Hanson Ping ! 

       Let me know if you want in or out.

Links:    FR Index of his articles:  http://www.freerepublic.com/focus/keyword?k=victordavishanson
                His website: http://victorhanson.com/
                NRO archive: http://www.nationalreview.com/hanson/hanson-archive.asp
                Pajamasmedia:
   http://victordavishanson.pajamasmedia.com/

3 posted on 02/18/2009 5:08:54 AM PST by Tolik
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To: Tolik
Great read. I have been thinking back to the 1930s Depression myself (although way before my time) -- and one obvious fact must be stated: it was a different world back then.

People knew how to do with less, people knew how to improvise, people looked out for each other.

If this downturn (or whatever it is) continues, in today's world, and if people start going hungry (they already are, of course) -- we will be in for a mess on a grand scale. To state the obvious.

4 posted on 02/18/2009 5:17:28 AM PST by Jerrybob
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To: Tolik

is there a better link? Thanks


5 posted on 02/18/2009 5:18:49 AM PST by RDTF (BO smells and eventually people do what's necessary to avoid it)
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To: Tolik

Bumperoo


6 posted on 02/18/2009 5:21:26 AM PST by roaddog727 (BS does not get bridges built - the funk you see is the funk you do)
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To: Tolik

I see it now, thanks


7 posted on 02/18/2009 5:21:54 AM PST by RDTF (BO smells and eventually people do what's necessary to avoid it)
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To: Tolik
Good article, but one fly in the ointment, we are a whole lot more interdependent today than back then. My Dad's father had a similar farm, 800 or so acres. He and his large family could live forever there if unmolested. He was self sufficient to the end. I spent many a day on gramps farm, and it was a wonderful place.

But now we have factory farms, and the people have all moved to the city.

These days, who could live if a large bunch of terrorist put holes in the local substation transformers, or caused some other mayhem. If the deliveries to Walmart stop, then what? Look what happened to the people after Katrina.

So isn't the real question today, what would happen if the Walmarts of our country, stopped selling. And that would spell disaster to the city dwellers, and then they would head out of town.

Small disruptions to modern society, with all it's interdependency's, and it's just in time delivery system, can easily turn into unstoppable disasters, we just can't grow our own food anymore.

8 posted on 02/18/2009 5:23:15 AM PST by Tarpon (If you don't stand on principle, you stand for nothing at all.)
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To: RDTF

Thanks, something went wrong with the main link:

http://pajamasmedia.com/victordavishanson/

to this article: http://pajamasmedia.com/victordavishanson/depressions-recession-downturn%e2%80%94whatever/


9 posted on 02/18/2009 5:23:51 AM PST by Tolik
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To: Tolik

Just so!

“. . . character and industriousness and acceptance of tragedy with both resignation and determination . . . are still the keys. . . to survival.”

And then, we’ll throw the Bastards out, and sendsomeofem to prison!


10 posted on 02/18/2009 5:27:55 AM PST by Taxman (So that the beautiful pressure does not diminish!)
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To: Jerrybob

I agree with you. I grew up on a farm where we grew pretty much everything we ate. Today I am in charge of a small community garden where I try to teach city people how to grow vegetables.

You would be surprised at the number of people who quit the minute they discover they might get their clothes and, heaven forbid, hands dirty and totally freak out when they find a worm or grub in the soil. Somehow they think I am responsible for getting rid of all those things before they arrive.

My worry is that if there is a depression those who do know how to grow their own food will have it stolen by those who don’t so for the first time in my life I am seriously thinking of buying a guy and learning to use it.


11 posted on 02/18/2009 5:35:40 AM PST by when the time is right
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To: Tolik
"Farm prices are going back down, and the rent (I now lease out my 45 acres) scarcely covers the taxes..."
12 posted on 02/18/2009 5:37:36 AM PST by HowlinglyMind-BendingAbsurdity
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To: Tolik

Tolik,
I’d like to placed on the VDH ping list. Thanks a lot.
RU88


13 posted on 02/18/2009 5:39:13 AM PST by RU88 (The false messiah can not change water into wine any more than he can get unity from diversity.)
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To: when the time is right
Yeah, if it really, (really) hits the fan, I think productive people will have some ability to grow food and fix existing equipment -- but that a lot of the other folks will just try to steal and dominate in order to survive.

Now, I think I know how that will work out. A lot of the productive people understand self-defense very well and will be able to resist beign dominated by looters.

But I see tragedy even in that because a lot of good, hard-working people might be driven to the idea that a whole lot of people just need killin'. I can see that happening and I think it would taint our nation much as slavery did.

14 posted on 02/18/2009 5:42:48 AM PST by ClearCase_guy (American Revolution II -- overdue)
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To: RU88

Added to the VDH ping list. Thanks.


15 posted on 02/18/2009 5:47:09 AM PST by Tolik
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To: when the time is right
Thank you for the laugh:

"for the first time in my life I am seriously thinking of buying a guy and learning to use ..."

I am not a spelling police and made worse mistakes, still, this one is good one

:^)

16 posted on 02/18/2009 5:50:27 AM PST by Tolik
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To: Tolik

VDH is a brilliant thinker/essayist whose message should be on the FRont pages of every newspaper in the Western World. Likewise, a Cliff Notes summary of his essays should be the opening statement of every TV and radio news program.

He writes very persuasively, and if given wide coverage, could perhaps win FRiends and influence people to view the world in a different, more reasonable way.

Sadly, I fear that his thoughts are not receiving the sort of exposure required to make a real difference.

HST, it is up to us to see to it that his ideas are spread far and wide. We need to somehow get his ideas out of our conservative community and into media the LIEberal/Socialist/Marxsts pay attention to.

Perhaps enough of the hangers-on will be persuaded that the Obamamaniacs have got it wrong and turn on them.

After all, that is the objective, is it not? Defeat the enemy on the field of battle and win their hearts and minds over to our cause?

Isn’t that why we do this?


17 posted on 02/18/2009 5:55:02 AM PST by Taxman (So that the beautiful pressure does not diminish!)
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To: when the time is right
seriously thinking of buying a guy

Sorry. I'm not for sale! ;^)

18 posted on 02/18/2009 5:58:22 AM PST by RepRivFarm
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To: Tolik
“my favorite singer Mark Knopfler”

This about seals the deal. Mark Knopfler is one of the finest musicians I've ever heard. Some of his guitar work is nothing short of phenomenal.

19 posted on 02/18/2009 5:59:38 AM PST by RU88 (The false messiah can not change water into wine any more than he can get unity from diversity.)
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To: when the time is right
first time in my life I am seriously thinking of buying a guy and learning to use it.

It's not that hard. The owners manual is only about 5 pages long.

L

20 posted on 02/18/2009 6:08:48 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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