Comments on: Not Just Another Recession – How This Economic Crisis Stacks Up

By: Chris

Chris — Tue, 07 Apr 2009 15:24:44 +0000

There are plenty of arguments to support that FDR’s programs that everyone loves so much did little more than prolong the depression and delay the recovery. The problem is and was too much and too easy credit. When overlevered business and people fail, the economic drop is breathtaking. Though it is politically palitable to “make it stop”, throwing a bunch of money at failed businesses and people does little more than kick the proverbial can down the road.

By: Dan

Dan — Tue, 07 Apr 2009 14:29:36 +0000

The Federal Reserve was created in 1913. Many people believe that its role in expanding the money supply during the 1920s played a significant role in creating the depression. It is fine if you disagree with that, but it is factually incorrect to say that the Fed didn’t exist in 1929.

By: Asa

Asa — Tue, 07 Apr 2009 13:50:14 +0000

The reason we ended up in the same mess is that a majority of people had no clue as to the histroy of how the Great Depression was created. Few knew that the environment before the GD was a Free market, concentrated wealth, trickle-down, supply sided economic theroy, and it failed horribly. There were no unions, no regulation, no reresentation for the working classes and you worked 15 hour days for less then a quarter.

It took 50 years of careful planning and policy to have such a stable economy that it seemed like nothing could take it down. Then in less then 20 years we dismantled every safe guard (Glass Sewall act) Deregualted every industry, Union busting, and returned to the same free market ideas that caused the GD and somehow expected things to go differently, and they didnt. The only thing that is keeping us from the bottom this time is the Government and the various safeguards put in place under FDR that were not yet removed. But of course we all work now 15 hour days with no over time for pentance of what we create, sound familiar??

By: Asa

Asa — Tue, 07 Apr 2009 13:33:20 +0000

Umm
A few points to clarify. One the X generation is not going to retire in a few years more like a decade and in my case probably 20 years or more. I am only 33 so I was not around during the great depression my grandmother was shes 90 the “greatest Generation”. Also the current people carrying on with this current economic condition are the “Baby Boomers”, bulk of them are in their late 50’s! The Baby Boomer generation has quite frankly created this mess with their “live for today” attitude. Spend everything, horde anything, and screw you, mentality. My fellow x-gens and I have never wanted to accumulate personal debt, and I have gone to great lengths to prevent it. But its difficult as most people our age are wildly underpaid.

By: Rich

Rich — Mon, 06 Apr 2009 20:08:09 +0000

Do you not find it odd that we still ended up in a similar situation to 1929 DESPITE all the new government agencies (Fed, SEC, FDIC, etc) created since 1929?

Government agencies don’t seem to be the solution and neither does “free market” seem to be the solution so what are we left with?

By: the weakonomist

the weakonomist — Mon, 06 Apr 2009 18:18:53 +0000

Andrew,

I know it’s fun to attack people on the internet, I’m certainly guilty of it, but it’s wise to make sure you’ve read the post carefully. I never said anything about national debt. This is personal debt. Maybe I should have clarified that better in the post.

I am guilty of trusting the Columbia professor, so if his numbers are wrong on personal debt please let me know. I will be happy to inform him of the error.

By: Andrew

Andrew — Mon, 06 Apr 2009 17:40:48 +0000

Just a quick problem I have with this post. The GDP has exceeded national debt more than just now and in 1929, but in the 1940s also. That deficit spending helped get the nation out of the great depression and helped to win World War II, and was followed by years of relative prosperity (as the nation chipped away at the imbalance through growth of productivity and increased taxes).

Please, tell your guest posters to fact check next time.