Has Anyone Even Heard Of The Depression Of 1920?
Is there anyone out there that has read about, or even heard about the depression of 1920? No, that is not a type-o. We all have heard about the 1929 depression, the one that lasted for over 12 years, but not too much is known about the depression we had in 1920, which lasted from January of 1920 to July of 1921. There are many that say it started as severe, or more severe than the depression of 1929. So why did the depression of 1920 last for 18 months, while the depression of 1929 lasted for over 12 years? Well, for one thing we had a Republican President that believed in the free market system, his name was Warren Harding.
President Harding did little in the way of Government interference, he did it by cutting Government and expanding the tax base. He immediately put together a committee which consisted of members of industry, banking and labor to come up with a solution. They came up with a plan, which was supported by the Republican Party and conservatives and generally opposed by the Democratic Party and liberal progressives. By the way, President Harding was involved each time the committee met, he wasn’t playing golf, traveling around the country on fundraisers, or visiting Hollywood celebrities. The point is, Government participation was small, capitalism and the free market took care of the rest.
At the start of the depression of 1929, we had a Republican President by the name of Herbert Hoover, but he turned his back on his party and free market principles and started Government interference, like quantitative easing and public works projects.(hey, where have I heard that before?) Well things got worse and he was defeated in the next election. In comes a Democratic President by the name of Franklin D. Roosevelt. His approach was the complete opposite of Harding’s, he, like our current President believe that Government is the answer, F.D.R. was wrong then, just like Obama is wrong today. F.D.R. left the private sector out, and the Government started to invest heavily, in what he thought was the answer to the problems of the country. Well his solution took over 12 years.
Over 70% of this country think we are still in a recession, even though the Government is telling us it ended in 2009. When are these Liberals going to learn that Government is not the answer, Government is the problem. We need to learn from history, when Capitalism is unleashed the country grows and everyone benefits. Of course, that is not what Liberals want; they want Government taking care of everyone. Just as F.D.R.’s policies prevented the economy from growing, Obama’s policies are doing the same.
The C.B.O. or the Congressional Budget Office, says that if things do not change, the unemployment rate could hit over 9% in 2013. We have all heard the definition of insanity, “Doing the same thing over and over and expecting different results.” Well the only conclusion I can come to, is that Obama is insane, how else do you explain why he continues with his proven failed policies. There is no doubt about it Obama is inept, he is a boy in a man’s job, he never should have become President. If he were running a private company, he would have been fire after the first year.
Instead of following in the footsteps of Harding, he has chosen to follow the footsteps of F.D.R. That only means one thing, if he is re-elected, we can expect higher unemployment, more job layoffs, and a lousy economy. The only bright spot is that unlike F.D.R. he can only serve two terms, but by then, it might just be too late for our country, if it isn’t already.
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This is one man’s opinion.
Chris, This has to be one of your best articles, The 1920 depression is something I knew nothing about. Obama should read it.