Wednesday, June 24, 2009

The Great Depression, Again

My favorite commentator, John Silveira, has written an article about a subject that is on nearly everyone's minds lately: financial depression. Here is an excerpt:

In 1921, we had a severe depression. It’s no longer part of America’s collective consciousness because it only lasted about a year and was followed by a time of then-unprecedented prosperity that we remember as the Roaring 20s. In 1930 another depression began. That one lasted over a decade and only “ended” because World War II broke out.

What caused one to pass so quickly and the other to drag on until it left a scar on the American psyche?

* In the depression of 1921, the government did nothing.
* In the Great Depression of the 1930s, the government did everything.

Read the rest of the article.

1 comment: said...

The article has some very interesting points and observations.

However, I might add that the REAL cost of using hydrocarbons (gas and oil) to power the economy is much higher than simply what we pay at the pump (Exxon Valedez anyone?) Not to mention all the other problems polluting the world is causing such as increased health care needs etc.

Indeed, when the true cost of oil is factored in, alternative energy sources are actually a bargain.