Friday, February 27, 2009
Chuck Cooper - Dreams of my Father's Depression
Unfortunately, things aren’t that rosy. You can do without stuff, but not without a job. Consumer demand collapses, businesses lay off workers, and scared people reduce “needs” to the real basics. That is the downward spiral you are reading about now. People aren’t going to start buying what they don’t need until something arrests the spiral. How do we do that?
For the various reasons Gordy lists, this could be the big one. Bigger than 1982. Maybe more like the 1930s. We know what it took to end that one. Or like the panic of 1873, which if you read about it, sounds very familiar. Or the panic of 1893. Over expansion and bubbles. Each of those depressions lasted the better part of a decade, and ended only with events that led to large infusions of capital. Huge farm exports and the Klondike gold rush, respectively, were major factors in turning the corner.
A little history study might quiet the critics of the massive deficit spending now getting under way. Dreams of our fathers.