Would Americans tolerate another great depression?

Answer 1

I would......... but then I could/can be self sufficient.

Most could not. Too industrialized and high-tech.

Answer 2

The stock market crash was not the cause of the Great Depression (GD), it was a "leading indicator" that something was very wrong with the economy. So, the government's role under
Dubya will be to make things alot worse because he actually IS clueless...

The GD was a very large credit crisis, much like our current small credit crisis (which may grow very large indeed), and it happened for much the same reasons - huge real estate bubbles in Florida and elsewhere, lots of easy credit (for the times, especially in the stock market, which is why it crashed first !

The stock market could do no wrong, it went up and up, but this rise was fueled by leveraged stock purchases that even Everyman, the average 'Mercan, was convinced to heavily invest in a sure thing.

But when some of the Rich saw this - that even shoeshine boys were giving out hot tips on the market, it was a clear signal to them that the boom times were over - but they stil tried to same their overpriced stocks by buying even more after Black Monday.

Then came the fear and the margin calls - the first major contraction of credit, and Everyman couldn't meet them, so their stock was sold out from under them. Everyman had used the maximum amount of leverage allowed them, like the current housing boom, and when the leverage reversed Everyman was less than broke!.

The Roaring Times was a boom time, until the credit dried up, just like today. The Roaring Twenties was a boom time built on easy credit, and things went along well until a relatively unknown European bank went under because there was a bank run, and it caused concern at the time, but it was the beginning of the great unraveling of that era's credit system.

The last GD was brought to us by the 'Publicans reaction to the stock market crash. U:nder Herbert Hoover, who should have known better - they proceeded to do exactly the wrong things!

They decided that artifical scarcity was the answer, so they passed "Smoot-Hartley", a long string of protectionst measures to raise the price of imports!

The 'Publicans were under a massive delusion that "good times" meant higher prices, so their solution was to destroy **real wealth ** to raise the value of the dollar, Cattle and sheep were slaughtered, milk was poured into the gutter, newly manufactured goods were sent straight to the dump.

The result was Hoovervilles, dustbowls, soup kitchens, social fervor and talk of revolution - and FDR.

The Federal Government is far stornger that in was in 1929, and the damage they can wreak is far, far greater.

The Fed did exactly the wrong things during the GD, and they're at it again! To provide "liquidity" they've injected a repo into the economy - a massive amount of bank credit to to their member banks to keep things going just a little longer - but, the problem is too much credit has caused the fear among lenders that all those IOUs are worth alot less than their face value, never mind profits. The value of a derivative is worthless if it can't be sold - and there's alot of pent-up demand for even more credit on top of what's already happened - which will just make it worse..

There will be a Greater Depression eventually, and civil unrest if the Powers-that-Be screw it up again, and this time they're ready for it - the concentraton camps are already built, the Marines have all ready been well trained in seizing cities draconian presidential directives sitting in the Prexy's desk just waiting for the next bout of terrorism or social unrest.arelying low, waiting to be made active.

Meanwhile the Bush Crime Family and their business partners, the Bin Ladins are busily at work trying to convice the 'Mercan people that Iran is the big bugaboo, but the 17 "...kids who were lured on to planes" in 9/11"as Dubya recently said came fom Saudi Arabia, who he plans to sell weapons to.Tis a crazy world...

Answer 3

Another Great Depression would not happen because the Securities and Exchange Commission did not exsist in Oct. of 1929. Recessions, yes, but not 25% unemployment during the peak of the great depression.

Answer 4

I suffer great depressions at various points in my life, anyway. I'm quite sure I could handle a national one. I think the wealthy tend to suffer the most loss. Those of us who already live below the poverty line, don't have quite as far to fall.

Answer 5

What makes you think they would have a choice? I believe the country is much more diversified today, this is one reason it has done so well economically. Is this economic perpetual motion we are seeing today, I can't say. Many people are waiting for the baloon to burst. I guess, time will tell !

Answer 6

The question is ridiculous...what would we do about it? You propose the question as though people in 1929 suddenly said, "Hey, I got an idea! Let's have a depression..."

Answer 7

I honestly don't know. Last time was bad enough, and our nation was nowhere near as divisive back then. If it happens again, will those who can provide care start favoring certain groups over others? That could cause a lot of problems....

Answer 8

Yes We are Americans try and remember that

Answer 9

It is here already. How many corporate bailouts have there been under W? It has to be a record, and to record proportions.

Answer 10

I worry about the young folks who think deprivation is not having all their electronics and car at their disposal.....they haven't got a clue.

Answer 11

What choice would we have but to tolerate it? I certainly worry about how well most would handle such an event.