Nickolai wrote:
So a progressive democrat is a communist ?? You are partly right mostley wrong. The Nation did not fall into depression because of the Federal Reserve It fell into depression because productivity increased 65 % in the 1920's with no corresponding increase in wages. Mass production was piling goods up on the loading docks and small farmers and factory workers did not have money to by so manufacturers sent salsmen around with a new idea Buy now andpay later. by 1929 House hold debt and reached 128 % of income. It was massive debt caused the depression. The Federal Reserve excercated it by tightening credit and Congress passed a protectionist Smoot Hawley Tarrif Act futher worsening the problem and spreading the depression to Europe, hitting Germany especially hard and helped Hitler and the nazi party's rise to power. When the bsnks begsan calling in loans no body clould pay banks closed swollowing the peopoles savings as they had five times in the 19th century. A 160 acre farm in my home state of Oklahoma fell from $8,000 to $1,000 in a couple years. The stock market did not recover it loses untill 1952-53. And the great compression of the early 1940's reduced the wealth gap b 1952 to 25 to 1 the narrowest in our history and after 15 years of depression and war the National debt in 1945 was 120 % of GDP by 1979 it had been reduced to 32 % of GDP even with the cost of the Korean and Vietnam wars. Yes BJ the Texas Conservative democrat did borrow from the SS trust fund to help fund his Vietnam war but it was Reagan that was a really big dipper he doubled the FICA to accomodate the baby boomers then bowrrowed the funds to pay for his trickle down tax cuts to the rich. In his eight years the National debt jumped from 32 to 56 % of GDP and the trajectory of borrow and spend was cast
So a progressive democrat is a communist ?? You ... (
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You history lesson, though including some of the facts, leaves a little to be desired. In the first place the Great Depression started in 1929 and was over by the time WWII was over. The stock market recovered quickly. It was the economy as a whole which took longer. But its recovery was during WWII and by the end of WWII the economy was in great shape. The years preceding the Great Depression were known as the Roaring 20s. That name did not come about because people were struggling to get by. It was a time of massive stock market speculation by everyone from millionaires to janitors. People were rolling in dough. What seemed like non stop partying, buying of luxury items, and world travel were common. One of the effects was a DECLINE in production. NOT an increase. Unemployment increased as production decreased and the prices of consumer goods dropped. Those getting rich on penny stocks didn't look for work or think they needed it. So the high life continued despite unemployment and low wages. Many must have thought the money would never stop pouring in to judge by their actions.
Then a drought hit and along with the drop in food prices (went with the drop in prices of consumer goods generally) the farmers were dealt a double whammy. The banks had given many loans which couldn't be liquidated. A mild recession hit during the summer of '29. Consumer buying slowed and goods began piling up which in turned slowed factory production even more putting more people out of work. Yet the stock market continued to rise and by the fall of that year had reached stratospheric levels that could not be justified by expected future earnings.
On October 24, 1929, as nervous investors began selling overpriced shares en masse, the stock market crash that some had feared happened at last. A record 12.9 million shares were traded that day, known as “Black Thursday.” Five days later, on October 29 or “Black Tuesday,” some 16 million shares were traded after another wave of panic swept Wall Street. Millions of shares ended up worthless, and those investors who had bought stocks “on margin” (with borrowed money) were wiped out completely. This was the crash which began the Great Depression.
As consumer confidence vanished in the wake of the stock market crash, the downturn in spending and investment led factories and other businesses to slow down production and begin firing their workers. For those who were lucky enough to remain employed, wages fell and buying power decreased. Many Americans forced to buy on credit fell into debt, and the number of foreclosures and repossessions climbed steadily. Many people blamed the world wide fixed currency exchange (gold standard) as the reason the disaster spread economic woes from the United States throughout the world, especially Europe. Although in my opinion it would have been the same no matter what currency exchange system had been in place. But this blame gave the excuse which led to abandoning the gold standard and the creation of the Fed.
Herbert Hoover was President at the time of the crash and believed if left alone the market would correct itself (but not without a time of great hardship). But in the mean time, the country’s industrial production had dropped by half. Bread lines, soup kitchens and rising numbers of homeless people became more and more common in America’s towns and cities. Farmers couldn’t afford to harvest their crops, and were forced to leave them rotting in the fields while people elsewhere starved. Runs on banks followed. In the fall of 1930, the first of four waves of banking panics began, as large numbers of investors lost confidence in the solvency of their banks and demanded deposits in cash, forcing banks to liquidate loans in order to supplement their insufficient cash reserves on hand. This banking situation repeated over the next few years and by early '33, thousands of banks had closed their doors. We will never know whether the theory Hoover had exposed was accurate or not as he went against his it when he tried bailing out the banks. He believed if the govt helped the banks, the banks would begin loaning money to businesses again which would then hire again. But Americans had had enough and had lost confidence in Hoover and in the '32 election FDR was elected.
Immediately following FDR's inauguration he ordered all banks closed for a "Banking Holiday". He order reform and created the FDIC and SEC to prevent a recurrence of the stock market and banking bubble. {Bill Clinton undid much of the safeguards initiated which allowed the several banking and stock market bubbles and bursts since he was elected.}
FDR's programs which he claimed would lead to a returned prosperity included the Tennessee Valley Authority, the Works Progress Administration, and the Social Security Administration. The IRS and Fed were created with the 16th amendment despite it never being ratified and its direct contradiction in the constitution. The promised prosperity didn't occur but the decline temporarily slowed and even halted and there was even some degree of recovery. But it was dependent on government (tax payers) propping up the economy and subsidizing work. It was not sustainable. {Obama did the same thing during his presidency}
The depression also hit Europe and Germany was especially hard hit due to their reparations they were forced to pay for their role in the Great War. This led to the rise of Hitler. In the US we went from a conservative leader to a progressive socialist leader with strong liberal leanings. In Germany they went from a conservative leader to a national socialist leader who used hatred and blame. Both were socialists but while FDR was primarily a progressive socialist and even a liberal socialist, Hitler was national socialist. Hitler's socialism was anti-communism, anti-semite, anti-gay, anti-rom, anti-(any non white race), and anti-capitalist. I'm sure I've left out some anti-s.
The war he started swept Europe and eventually we entered. The gearing up of production for the war, and the enthusiastic patriotism and confidence of Americans ended the depression and resulted in real prosperity again. One of the reason's it led to prosperity is our country was under producing before the war. The increased production (at first of war goods but later civilian goods) increased profits and jobs, which increased revenues. And these were sustainable not propped up by the taxpayers.
I hope this very brief history lesson will enlighten you. I've tried my best to chop it down to the bare bones.