Posted on 12/22/2008 9:07:58 PM PST by jazusamo
I also see parallels with the huge inflation and unemployment of Germany during the Weimar Republic.
And we all know what and WHO that led to over there.......
Well get ready for the Greatest Depression!
In 1924, Calvin Coolidge’s son got a blister on his foot after playing on the White House tennis court without shoes and died after it became infected. The death took its toll on the President and he declined to run in 1928. If he had, I wonder if the depression may not have been “Great.” Coolidge never cared for Hoover’s interventionist tendencies much...”for six years that man has given me unsolicited advice—all of it bad.”
Agreed...Dr. Sowell makes it very clear the government interventions are not the thing to do and I’d take his word over anyones.
I would say the weeds were already choking the garden, but instead of spraying weed killer, he used Rapid-Gro®.
We already have double digit unemployment in this country.
Most folks don't understand that unemployment numbers didn't exist until 1941. These numbers were divided into 7 levels - with "U7" being the broadest indicator of unemployment, and the one that compared directly to the numbers during the 1930's.
In fact, U7 numbers were the "official" numbers that were reported for over two decades.
Then the government got their hands into the mix and began reporting U3 numbers so that unemployment didn't look so bad.
The Bureau of Labor Statistics reformulated the unemployment measurement in 1995 and condensed everything into 6 levels instead of 7. The goverment reports the U3 level as being official.
If we want to measures "apples to apples" with the Great Depression then we need to quote U6 levels of unemployment.
The November level of U6 was 12.2%, up from 11.1% in October.
One could argue we've been a quasi-socialist state since the days of Woodrow Wilson.
The difference between then and now is that america actually had manufacturing and a labor force then. Now we have trade deficits and undocumented workers and american owned factories all over the planet.
I wouldn’t argue with that at all.
>> ... but politicians’ attempted “solutions.” Is that the history that we seem to be ready to repeat?
“solutions” or the opportunity to implement an agenda?
TS provides, once again, reason backed by historical perspective. I pray the controlling Democrats/Liberals temper their ambition during these vulnerable and opportunistic times.
NAFTA trade with Mexico has really elevated both of our economies. /s
One sad thing is that the federal budget analysis is screaming with warnings about this...yet they just get ignored.
Why do we think Roosevelt's spending on the economy worsened the depression, but the war spending helped lift us out? What's the difference between spending on roads and spending on planes and bombs when they both create jobs and are paid for by the government? I'm under the impression that we weren't paid a lot of money by other countries even with lend/lease, etc, so wasn't the money coming out of our coffers?
Hmmm...the “Bleak Depression”? The “Horrible Depression”? The “Most Depressing Depression”? The “Awful Depression”. The “Miserable Depression”?
Nah, none of those resonate.
Wait...the “FDR Depression”? Yes, that has a nice ring to it. Let’s go with that. The new one we’ll call the “BHO Depression.”
Teleprompter Boy will sooth us via fireside chats. In high definition.
I’m surprised Thomas Sowell would write an article on The Great Depression without mentioning the fact many now consider the most damaging of all: the Federal Reserve, through their tightening policies, shrunk the money supply by 30% over about three years. That led to many of the bank failures and a slow down of all aspects of the economy.
Bernanke is a big believer that the Fed mostly caused the GD, and, of course, now the approach is to “flood the streets with money” when a serious recession or depression is possible. That’s what happening now, though the toxic debt problem complicates things well beyond any recent recession.
Sowell makes good points, but leaves out the factor many now believe was the most damaging.
I think it would be greatly beneficial to both north america and central america if we could use this economic crisis to try to persuade more manufacturing in central america and import less from asia. Also to lower taxes and knock down labor unions a peg or two. Actually, I really like to see imports from asia reduced to ZERO. Excluding japan of course. But I don’t consider them asia.
This would be my strategy if I were king of america.
I’m contemplating retirement in 8 or 10 years having lost 50% of my equity value and another 50% or more through inflation. I figure in real terms, I’ll have about 25% of what I had forecast and planned to retire on. I’m not sure what to do now except work until I drop dead...if I can find something useful besides being a greeter at Walmart.
Also agreed. Unfortunately Dr. Sowell is validating my fears about all these interventions.
For some, my parents saved enough to start a business and build a new 2,400 sq. ft. home in the Silverlake Highlands of Los Angeles and have me after they had completed the first 2 during the depression.
They also taught me from the time I could sit up in a high chair never borrow for anything but a home and that if you don't have the cash you don't need it.
I've lived by those rules and I thank them for teaching them to me.
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