Question Home

Position:Home>Philosophy> Do you think that there will be another "Great Depression" soon?


Question: Do you think that there will be another "Great Depression" soon!?
Because of the economic crisis that the USA is currently living, do you think this will happen again!?Www@QuestionHome@Com


Best Answer - Chosen by Asker:
It's certainly a possibility!. This current crisis seems to be mirroring the Great Depression so far!.

Many economists now admit (some grudgingly) that the government's actions to remedy the G!.D!. in all likelihood actually worsened and prolonged it!. Similarly, the economic boom-and-bust cycle is also thought to actually be the result of gov't meddling!. The problem is three-fold:
1!. Those in gov't who propose solutions to economic downturns often are not very well trained in economics, or are too dogmatic to analyze the problem rationally and objectively!.
2!. Gov't takes time to respond, and gov't solutions once enacted take time to take effect!. The result is that the desired effects usually come at exactly the _wrong_ time!.
3!. There is actually a real form of Murphy's law: the law of unintended consequences!. This means that for a variety of reasons, gov't actions often create results that run counter to the desired effect!. And it is in fact not at all unusual for the negative effects to outweigh the desired benefits!.

I strongly suspect that the proposed $700 billion bailout will itself do more harm to our economy than simply letting this crisis sort itself out!. $700B is a HUGE amount of money, and it has to come from somewhere!. That "somewhere" will be our economy!.

There is also the moral hazard created by bailing out failing companies: other companies may take unreasonable risks in the belief that they too will get bailed out if they fail!. Failure is an essential part of a free market economy, it sends signals as to which goals are not worthwhile to pursue!. Not allowing companies to fail is like a teacher who will never give a student an F, no matter how bad or how little work they do!.
Www@QuestionHome@Com

No, I don't!. I have read up on this & there are reasons why what has happened recently differs greatly from the depression of the 1930's!.

For one thing unemployment in the USA is only 6% at the moment!. But in the 1930's depression unemployment was at 25% at that time!. These days only Third World type countries have 25% or more of their population classified as unemployed!.

also the 1930's depression happened at a time when the stock market was unregulated so people could do what they like!. Now there are more restrictions & there is more protection in place so that this will not happen again!.

You can research what economists are saying about the current situation by searching the net!. Most newspaper's websites will have a section called Economy or Business & there is usually a commentary there by a qualified journalist that specialises in Economics, advising what is likely to happen, etc with comments by Banking executives, politicians, economists who work at Universities & have dedicated their careers to studying economics, etc!. That should put your mind at rest!.Www@QuestionHome@Com

I guess it depends on what you mean by "Great Depression"!. What is the definition of depression!? I suppose we could go through a depression!. Even the meaning of what a depression is could be debated!. Most think of a depression as a reduction in the gross domestic product by 10% or more in one year's time!. I don't believe we are in that situation, but I suppose anything could happen!. There's no doubt that the economy has seen it's better days!.Www@QuestionHome@Com

No I don't think so!. There are too many people with too much knowledge of the mistakes last time for this to happen again!. I don't know what the solution will be, but we will get there!. The Depression was made worse by natural disaster which made crops fail and the economy couldn't maintain itself during difficult times!. Our industries are much different these days and in a global economy our prospects are much better!. Www@QuestionHome@Com

Yes!. A friend of mine told me two days ago that he read or heard somewhere that a Wall St!. insider type told someone that the buzz among those who know is that the market is going to crash in a month!. I don't know if this guarantees a depression, but combined with everything else that's going on, I'm sure it won't help!.Www@QuestionHome@Com

Nope!. There is and will always be only one "Great Depression" I think that this economic crisis will be resolved but it will take work and time!. I also think that If we fail to fix the economy we will simply fix the government!. It will be the start of the next world order!.Www@QuestionHome@Com

No!. The economic crisis is about money on paper, not people out of jobs!. By propping up the economy and reassuring lenders, the governments of the World will steer through this one!.
Www@QuestionHome@Com

We are living it right now dear!.Www@QuestionHome@Com

yes
yes
history can only repeat its self because the same greedy ppl run things and they run them into the ground!. tmm about two years i thinkWww@QuestionHome@Com

NoWww@QuestionHome@Com

hope notWww@QuestionHome@Com

I certainly hope not!. I think we may be able to get our act together to avert a crisis!Www@QuestionHome@Com