Another Great Depression?
Barack Obama stated in a speech on May 14th concerning the housing crisis that, "There are some similarities, though, to what happened back in the late 20s and early 30s and what's been happening now, and the biggest similarity is how we've been dealing with Wall Street and what's happening in the financial markets." Today he stated that after the Lehman Brothers crisis and the buyout of Merrill Lynch by Bank of America that we are in "the most serious financial crisis since the Great Depression." On the other hand, John McCain is much more cautious stating today that "There's been tremendous turmoil in our financial markets and Wall Street and ... people are frightened by these events. [However] the fundamentals of our economy are strong. But these are very, very difficult times." How did the Great Depression start? It began with the stock market crash of 1929 followed by the failure of over 3,000 banks in the 1930s. Americans stopped purchasing across the board. Further, America's policy with Europe and the drought conditions that existed in middle America just added to the events of the day. Understanding this, the answer to whether we are entering another Great Depression lies in part with how Americans react to the latest news. If individuals fear for the future, they might not purchase as much. Obviously with less being purchased, there will be less to manufacture. This will result in a loss of jobs. If consumer confidence stays high then we might experience a serious recession but hopefully we will be able to avoid the worst of the Great Depression.
Comments
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oh, ok cool, thanks for info
Monday September 15, 2008
Barack Obama stated in a speech on May 14th concerning the housing crisis that, “There are some similarities, though, to what happened back in the late 20s and early 30s and what’s been happening now, and the biggest similarity is how we’ve been dealing with Wall Street and what’s happening in the financial markets.” Today he stated that after the Lehman Brothers crisis and the buyout of Merrill Lynch by Bank of America that we are in “the most serious financial crisis since the Great Depression.” On the other hand, John McCain is much more cautious stating today that “There’s been tremendous turmoil in our financial markets and Wall Street and … people are frightened by these events. [However] the fundamentals of our economy are strong. But these are very, very difficult times.”
How did the Great Depression start? It began with the stock market crash of 1929 followed by the failure of over 3,000 banks in the 1930s. Americans stopped purchasing across the board. Further, America’s policy with Europe and the drought conditions that existed in middle America just added to the events of the day. Understanding this, the answer to whether we are entering another Great Depression lies in part with how Americans react to the latest news. If individuals fear for the future, they might not purchase as much. Obviously with less being purchased, there will be less to manufacture. This will result in a loss of jobs. If consumer confidence stays high then we might experience a serious recession but hopefully we will be able to avoid the worst of the Great Depression.
Top 5 Causes of the Great Depression
Republicans are to blame for causing the Great Depression and the current economic collapse by favoring monopolies, big business and the wealthy. These policies squeeze the masses between relatively low wages and high taxes and prices. The Federal Reserve is forced to try to maintain the standard of living by expanding the money supply, which produces unsustainable credit-driven booms. Eventually, consumers’ credit runs out, especially since the debt financing from the savings of the wealthy is at high interest rates. When markets fall, brokerage firms, that lend money on the margins (e.g., several dollars for every dollar an investor deposits), call in loans, which cannot be paid back. Banks fail as debtors default on debt.
Democrats make sure depressions continue until world war. They believe in a nationally planned economy including higher taxes on corporate profits, increased federal government control over the economy and money supply, intervention to control prices and agricultural production, complex social programs and wider acceptance of unions. Interference in the economy help cause depressions, and government efforts to prop up the economy after only makes things worse by delaying the market’s adjustment. We need a new political party that favors free markets, small business, the middle class and antitrust.