Bick
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Posts: 6,901
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Post by Bick on Apr 2, 2020 3:43:57 GMT -8
Scary as it may sound, we may very well be at the beginning of the next depression.
In looking back nearly 100 years ago to the great depression, there doesn't seem to be a consensus as to the causes of it.
The current 2T bail-out seems like an attempt to stave off an economic collapse. At first blush, I was against it, but am warming up to the idea it may be a necessary move. Is it?
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SK80
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Post by SK80 on Apr 2, 2020 6:22:40 GMT -8
Lets enjoy the recession first.....  |
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davidsf
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Post by davidsf on Apr 2, 2020 7:42:36 GMT -8
The Great Depression was basically caused by the widespread panic of the average joe... much like our great Toilet Paper famine of 2020, oh, and our Stock Market drop too, I guess...
One of the remedies Roosevelt applied was an infusion of Government cash, but he took it too far: Keynsians would advocate, as Roosevelt and, also (by the way) Obama did, the cash keeps coming, but Friedman argued for small, and incremental infusions of government money and that too much flow into the money supply causes inflation which we saw from both Roosevelt and Obama, although Obama quit talking about inflation so it was not in the public eye as much.
In mo opinion, although it came along after the Great Depression, one of the best remedies was thought of by Truman (I believe) but enacted by Eisenhower: The construction of the Interstate Highway system. It infused government cash back into our economy, but did it by increasing employment and production.
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MDDad
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Post by MDDad on Apr 2, 2020 7:49:53 GMT -8
Let's not kid ourselves. The three main reasons we came out of the Great Depression were Hitler, Mussolini and Hirohito.
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davidsf
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Post by davidsf on Apr 2, 2020 7:51:25 GMT -8
Let's not kid ourselves. The three main reasons we came out of the Great Depression were Hitler, Mussolini and Hirohito. Well, yes... It is difficult to perpetuate an economic malaise when you are the sole remaining producer in the world. |
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RSM789
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Post by RSM789 on Apr 2, 2020 20:40:38 GMT -8
Let's not kid ourselves. The three main reasons we came out of the Great Depression were Hitler, Mussolini and Hirohito. War in & of itself does not drive economic progress. If it did, we could end every recession by building a bunch of battleships and sinking them in the Pacific. As Dave correctly wrote, what ended the Great Depression for us was that we were the sole remaining major manufacturer in the world following the war. Government infusion of cash into an economy is like priming a carburetor. You need some to get the engine started, but if you continue for too long, you flood it. |
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