Recessions and Depressions have been around since the beginning of time and will continue even after this one is considered over. That’s the nature of markets. Unfortunately our elected officials DO NOT UNDERSTAND that the market has to re-set itself after experiencing an extended period of prosperity because resources and capital end up being allocated in unwise ways in the later stages of a prosperous times.
Henceforth the depressions prior to 1929 were quick & decisive events that proved to be VERY efficient in correcting bad decisions by our public & private sectors by re-allocating capital and resources to more productive uses. Just look at the events of 1920 – 1921! Google it up folks! By 1923 unemployment had gone from high double digits to under 5%. There is no better example than this of how our markets can efficiently correct themselves if the Government will GREATLY reduce their roles during these events.
The Great Depression - World history
Why don’t you write about the fact that our Nation has experienced several depressions prior to The Great Depression in 1929 of which were in fact VERY devastating for the Nation, but they only lasted on average about 2 years. Banks went broke, business closed and unemployment was high in each of these occurrences. The only difference was that our elected Officials REFUSED to stick their noses in these events until 1929.
It was a very difficult time in the United States
One thing you hear all the time is that protectionism caused the Great Depression. I’ve always seen this as an attempt at a Noble Lie; there’s no good reason to believe that it’s true, but it has been used to scare governments into maintaining relatively free trade.
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Congress created The Works Progress Administration (WPA) which offered work relief for thousands of people.
The end to the Great Depression came about in 1941 with America's entry into World War II.
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But the truth is quite different, as a by Barry Eichengreen and Doug Irwin shows. Protectionism was a result of the Depression, not a cause. Rising tariffs didn’t even play a large role in the initial trade contraction; like the spectacular trade contraction in the current crisis, the decline in trade in the early 30s was overwhelmingly the result of the overall economic implosion. Where protectionism really mattered was in preventing a recovery in trade when production recovered.