How can America avoid a Great Depression?
The Great Depression was not only an economic one. There was a major drought that devastated much of our farmland. What has been devastated today is confidence in the system. If you think about it, what has changed in real material terms in America in the last few years? Answer: Not much. We have as much water as we did before. We have as much food as we had before. Our natural resources have not vanished over night. In fact, on our worst day we live better than 95% of the world. Our free market system can easily correct the financial mess if the Government will get out of the way. The tax burden on our businesses is a huge dead weight around their necks. Take it off and they will run like the wind. Every time the government over steps their bounds they only make things worse in the long run. A Free Market and a Free People is what made U.S. great. Don't let people scare you into giving up your freedom for fear of a few hard months or years in your lifetime. Americans are the most resourceful people on earth. If you don't believe me then ask the Nazis who we defeated and the Jews and the French who we saved. God Blessed the American people.
- SarahLv 61 decade agoFavorite Answer
When the American economy enters a downturn, you often hear the experts debating whether it is likely to be V-shaped or U-shaped. Today, the American economy may be entering a downturn that is best described as L-shaped. It is in a very low place indeed, and likely to remain there for some time to come.
And as we coast along the bottom of the “L”, every decision made and course of action initiated will have a critical and possible long lasting affect. Most of us are not old enough to remember America’s Great Depression which actually became a worldwide economic downturn or recession starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries.
It was the largest and most important economic depression in modern history, and is used in the 21st century as a benchmark in how far the world’s economy can fall.
As you read this approximately 3.6 million of American homes have been given up for foreclosure. The banks and other financial institutions that own these mortgages face stunning reverses; a few, such as Bear Stearns, have already gone belly-up. Long time business are closing their door leaving millions of people unemployed.
To prevent America’s $5.2 trillion home financiers, Fannie Mae and Freddie Mac, from following suit, Congress authorized a blank check to cover their losses, but even that generosity failed to do the trick.
This social catastrophe has severe economic effects.
Market economies work only when there is a system of accountability, but C.E.O.’s, some of our elected people in Congress and creditors are walking away with billions, while American taxpayers are being asked to pick up the tab. (Freddie Mac’s chairman, Richard Syron, earned $14.5 million in 2007. Fannie Mae’s C.E.O., Daniel Mudd, earned $14.2 million that same year.) This is a disgress.
We’re looking at a new form of public-private partnership, one in which the public shoulders all the risk, and the private sector gets all the profit.
How Did We Get into This Mess?
A hundred experts in related fields will give you a hundred different answers. And how can we trust the answers given by those that have a vested interest in the decisions made.
Henry Paulson, Secretary of the Treasury since 2006 asked, without blinking for a $750,000,000,000 check to bail out somebody. That’s right….SOMEBODY!
When asked who he reply was that it hasn’t been decided yet and when asked why that amount, his reply was that, “I wanted a big enough number to be taken seriously.”
WHAT DOES THAT MEAN?
I am sure that most Americans wanted to believe that the powers in Washington would set aside party politics and self interests due to the seriousness of the problem.
Many speeches were given promising that partisanship would be left out of the recovery process. And what happened?
The very first opportunity they (Congress) had to test their resolve….THEY FAILED!
Partisanship means: an inclination for or against that inhibits impartial judgment. So how can we trust the same people that were suppose to safeguard us against exactly what happened when they had the hubris to add $100 billion to the $750 billion initially asked for.
As America attempts to work its way out of the present crisis, the danger is that we will listen to the same people that got us into this mess in the first place. We can not trust them but have no other choice.
And though I personally hate any regulation of any kind. it takes a back seat to the lessons I learned from our Founding Fathers.
You see, they took into account the foibles and shortcomings inherent in all of us as they penned and signed the documents that are the foundation of our democracy. They were well aware of greed and self-interest and sought to protect us from ourselves.
That is exactly what is needed today. We need, as we restore our economy back to health, to design a system of protection built on the same “checks and balances” we use between the three branches of government.
Then and only then will will have a fighting chance against avoiding another Great Depression.Source(s): www.thelangreport.com/economics/avoiding-another-great-depression - Cached
- SashaLv 51 decade ago
First, they need to have the Auto Companies file Chapter 11. That will kill the Union. Would be non voided. The Union charges a lot of money, and they get way to much from the Auto Companies. Then, let the Credit Companies give Credit Debt Forgiveness. They offered a few days ago. But, the ones in Washington said No! Then, make the Banks lower the Mortgage Rates for at least a year. Don't Tax Corporations for a limited time. Without Corporate, we will suffer with small Businesses. Give small Business a tax break also, for about a year. Have all States, Re evaluate the Property Taxes. Cut them fairly for about 2 years. Either do a flat Tax or The Fair Tax. Don't raise Capital Gains, or Death Taxes for 2 year minimum. Make a law for Medical Insurance to go to a percentage, starting with a Family of four. 2 adults and 2 children. If one has more kids, give them a percentage within reason for extra. What some don't get, is some families just keep popping out the kids. They need to be accountable for that. Especially, get the illegal's out of our Country. Secure the Border. Do trade with Columbia, and faze out trade with China. Some ideas for a start.
- kaththea sLv 61 decade ago
Unfortunately, too many of our population have apparently converted to the do-nothing-positive attitude of the libs, who figure if the government doesn't do it, it won't get done right. When, in actuality, if the government does it, the odds are it'll be majorly effed up. You have no doubt heard that an elephant is a mouse built to government specifications. Enough said.
And if they don't find some sense, or God does not bless us in ways He has already heard from me. we're doomed, because the only thing Dems know how to do is tax--everyone, they don't care! And that is the worst thing you can do while trying for an economic recovery. But you can't tell them that, because most of them have already stashed their 'golden learjet.' And, apparently think that common folk like the bulk of their tax target just don't feel the pinch like real people.
- 1 decade ago
1. America needs the jobs that have been sent abroad.
#2. Cut the Congressional pork.
#3. Reduce the high wages of most government employees, especially those we elect.
#4. Let these companies that get themselves in trouble get themselves out. Let the automotive co.s go into bankruptcy.
#5. Redo the tax rules. The more you make, the more you pay. A flat tax on a percentage basis.
Eliminate tax loopholes.
#6. Revamp the welfare system. If they aren't disabled, they can work. Many just spend it on drugs anyway.
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- 1 decade ago
Honestly, the government is so screwed up it has no idea what it's doing. This bailout thing has completely morphed into something far worse than was originally proposed. Which I was against. I have absolutely no confidence in anything they do. Why should I? Sadly, I am not sure America will survive Obama. If it does, it will not be better for it.
- PatriciaLv 61 decade ago
in practical terms, the only way to effect immediate results is to
institute a CONSUMPTION tax and abolish the old tax codes and return to the gold standard.
a sales tax only is actually the only fair way to tax. it would also be a psychological sop for those that dislike and/or don't understand ratio & percentages.
1 - the knowledge that Mr & Mrs. More Prosperous, who can afford to purchase an expensive car, will also be paying a hefty sum in taxes while the average J. Q. Public, who can afford only a cheaper car, will pay less in taxes on their purchase should satisfy the disgruntled and ignorant among us while not overly penalizing the 'rich'.
2 - if tax revenues depended entirely on J.Q. Public's purchases, our legislators will be less likely to institute programs that affect purchasing power.
- 1 decade ago
its pretty obvious that the credit crisis could have easily been prevented if not for rampant deregulation. it was actually lack of government intervention that got us into this mess. pure capitalism, like pure communism, has never existed and never will. also, the government who freed the jews and saved the french was the one that brought keynsian economics to the forefront and set up the systems which, until this current era of rampant deregulation and government lazy-faire, if you will, prevented other depressions from happening.
- canamLv 71 decade ago
If washington would make a decision not based on their own personal pork, we could come out of this economic problem just fine. We are not alone. The whole world is having economic problems.
- 1 decade ago
Impeach or otherwise "Correct" the Obamination that is taking over the White House in January.
- Anonymous1 decade ago
Government intervention caused the great depression to last several more years than if they let the capitalist system recover on its own.