The Great Depression of 1920-1941 and the Current Sinking Spell

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The Great Depression of 1929-1941 and the Current Sinking Spell.





The beginning of the Great Depression is generally believed to have begun with the stock market crash of 1929 but the seeds of that tragedy had already been sown in the early 1920's. The U.S. economy boomed after World War l but not everyone shared in the wealth that was generated. Farmers and workers incomes were low and remained low until 1941. The rich, as usually happens, got richer. Other events of the 20's that lead to the crash are very interesting but not pertinent to this blog.


The stock market began to rise dramatically in the late 20's until the value of some company stock was more than that company's gross worth. It looked like stocks would keep going up forever. People's good sense and judgment dissolved in a speculative frenzy. Greed took control of the stock market and the inevitable happened. Sound familiar?

In the aftermath, banks failed, scores of busnesses and factories closed and many farmers lost their land. Exactly how many millions were unemployed, how many families were evicted from their homes, the number who literally starved to death and the number of suicides will probably never be known. But the estimated statistics are horrendous enough.

Herbert Hoover (or Hoobert Heever as one befuddled radio announcer introduced him) was the then president. An honorable and capable man under ordinary circumstances he was not equipped to handle the disaster unfolding on his watch. Franklin Delano Roosevelt, popularly known as FDR, won the next election in a landslide. People wanted a change. Anybody except Hoover!

FDR, in the first of the "100 days," made popular by succeeding presidents, inundated the predominantly Democractic Congress with a blizzard of legistative requests leading to 42 new government agencies, many that are still with us: FDIC, TVA, SEC, Social Security and NLRB among others. FDR also included a 10% reduction in the salaries of government employees.

Here's an idea: As a gesture of solidaritywith the electorate, goodwill and sincerity, Congress voluntarily should take a 10% reduction in their salaries. None of them have lost their home(s), health insurance, pensions or other perks. Realistically, this gesture is not forthcoming; It is much too comfortable on Mt. Olympus. In fact, members of Congress got a PAY RAISE in January 2009.

FDR is credited by some as bringing the country out of the Depression. Not so. The Depression lasted until 1941 when the U.S. entered WWll. He did however, help to hold the country together with his optimism and some of the programs he instituted. He was an icon of hope and was revered by the masses. My step-mother thought of him as being next to God and all Republicans as heartless.

In 1929 I was 4 yrs. old. We lived in a small town and I remember we moved to another house but don't recall hearing anyone give the reason. Probably because my dad lost a restaurant and hotel he owned But by and large we were more fortunate than many. My brother and I never went hungry. My dad always had a job of some kind but even so, ocassionally it was necessary for him to supplement that with food from the welfare center. It was a matter of pride with him to provide for his family and he felt ashamed that he had to ask for help. We were poor but so was just about everyone I knew. I only became aware of our situation as I grew into my teens.

Some, but not all, lessons I learned from those days; (1) Stay out of debt. If I can't pay cash for something (other than a house), I don't need it. Delayed gratification. (2) Save money for emergencies, retirement and to be able to help others in time of need. I would rather live under a bridge than to impose on my children in my old age. (3) Recognize that there are things I might want but will never be able to afford. I tell myself, "Don't be stupid. Get over it." See (1) above. (4) Learn early what is really important in life and that it usually doesn't include "things." To paraphrase Carlyle Marney, Baptist minister and author, " There are few experiences more painful in life than those moments of lucidity when we realize we have paid too much. We look at all the 'things' we have accumulated and think of all the time, energy and resources we expended to get them and a keen sense of disappointment and regret settles over us."

The Current Sinking Spell

Obama ("anybody than Bush!") came into Washington riding on the Democratic donkey. Some saw more meaning in this than it deserves. In his campaign, like those before him, he had sprinkled the electorate with fairy dust; that is, with promises he could not keep. He would, he promised, "change Washington." Hello? Does he really think he can get rid of the corruption in Congress? Nobody will change Washington in a positive way until Jesus returns. Since I am remarking about politics you should know I am a registered Democrat, but I think and vote INDEPENDENTLY. Frankly, I'm not devoted to either party. And yes, one can be both a Democrat and a Christian. Back to Mr. Obama. For the sake of our country I sincerely hope he will be the best president we ever had. If Mr. McCain had been elected I would feel the same about him. My concern is for the good of our country. Obama seems to be trying to emulate Lincoln and/or FDR. Worthy goals and I hope he succeeds but he will have to try a lot harder.

Obama is a product of Chicago politics. He did not come into office without strings on him. Gaps have shown up in his shining armor and revealed that, surprise!, ---he is a politician and does what ordinary politicians do! But to his credit, he talks in complete sentences.

He has surrounded himself with the usual Washington/Wall Street suspects, many of whom were involved in the present financial fiasco up to their baby blues. An Axis of Evil joins Washington and WallStreet. The grease that lubricates the axis is pure unadulterated GREED and is driven by uncncontrolled lust for money and power. What has been revealed to the American public is only a whiff of the rot and slime hidden from view. I am not blaming Obama for getting our country into the mess we're in. He inherited the problem but it is his to solve.

Will the current situation in our country deteriorate into a full-blown depression a la 1929? For many of our citizens it already has. But for those who concocted the phony financial instruments that have played a major role in the problem, what would happen to others was never a consideration. They are happily enjoying the bountiful fruit of their deceptions and, it would not be a surprise to me, that somewhere at this moment, a group of them is working on the next "big thing."

A cynic once remarked, "The world is not round, it is not flat. It's crooked."

Come, Lord Jesus; please come soon. God bless you. Please pray for our country.

vil

It's been said that, " The one thing we learn from history is that we don't learn anything from history."