Recent class discussions and the evening news keep alluding to the decline in value of the US dollar and other marks of economic recession which may be signaling a crisis. Our upcoming study of the Stock Market Crash of 1929 and the Great Depression will certainly lead us into discussions on the question which you will focus on for this week's blog: Is the US headed for another Great Depression?
Directions:
1. Read any two of the following articles that offer varied perspectives on this weeks topic:
B) "A New Great Depression? It's Different This Time", by Michael A. Hiltzik.
LA Times, March 20, 2008.
http://www.latimes.com/news/printedition/front/la-fi-depression20mar20,1,1097237.story
C)
"Are We Headed for Another Great Depression: Talks with Elaine Meinel Supkis" by MikeWhitney. Dissident Voice Newsletter, May 12th, 2007.
http://www.dissidentvoice.org/2007/05/are-we-headed-for-another-great-depression/then
2) Summarize the key points of both articles and state your opinion on the framing question posted for this assignment, are we headed for another Great Depression? Be sure to refer from facts from the article and class to support your response.
Posts must be at least 200 words and include a response to at least one peer.
Due Friday 3/28
15 comments:
From the Frist Article.“Are We Headed for Another Great Depression?” by by Mike Whitney. Matt had interviewed Eliane Meine Supkis. Eliane had told Matt about the Great Depression. It started in 1929, only two great empires exhaust their finances. World War I was involved with two of the biggest power's in massive death-struggle that didn't destroy their industries but had reacked their currencies, and beggared their workers. Russia had been one of the major empire but was an industrial power, when workers were the revolted, and loss of their sector's industrial base, it had a less impact than the collapse of Germany's currency and its hudge war debts.Germany had spent $3.9 billion less than England, since the 1913, this would of had represented well over several trillion dollars in todays currency. From what I read from the article there is no nation the can take a financial hit and would have spent big. Europe's industrial production fell 30% and the United States,had lost billions of dollars of loans to all the parties in Europe. during the 1920's.The Second Artlice I have read is "Depression, You Say?" by Charles Duhigg. In this article the stock markets have increased. he nations largest financial institution has flirted with bankruptcy and the former Federal Reserve chairman Alan Greenspan had invoked the ghost of past, calamities. When he wrote the current economic turmoil it had became the most wrenching since World War I. The nations economic health agreed that a recession has probably already begun, it would have long and sere, for the odds to become a full- blown depression are almost nonexistent. In the beginning of the Great Depression, American policy makers began actively managing the economy with a handful of things. It had included interest rates and using massive government spending to spur growth. From the second article I think that the government had hustled many people. Like they said in the article Government hustled would have been unthinkable" I guess the people who didn't think very much about the government, and how the distinction between a recession and a depression didn't matter, because turmoil in the economy was often taken for granted.
Ashley Cifu
Block F
Cherricka
The thought of another great depression is shocking and scary. Imagine a world where more than half the population is without a job. Imagine people losing their homes and some living on the streets. A thought like that can almost hurt you inside. In the New York Times article "Depression, You Say? Check Those Safety Nets" it is believed that there could be another depression, but it won't be that bad. I agree with this article because our economy is very strong. We have way too much going on for it to just fall apart. "home foreclosures are at their fastest pace in at least 30 years and in a survey conducted by USA Today and Gallup, more than half of respondents indicated that they had fears the downturn could become a depression." Foreclosures is becoming a huge thing right now for most middle class people, who are buying homes. This is very frightening to New Yorkers. In the second article from the Los Angeles Times entitled "A new Great Depression? It's different this time", proves that there will be another depression. There were percentages that would outrage you and important dates that reveals how we are moving in growth. "Then, like now, stock prices were highly volatile. The S&P 500 index, which fell more than 56% from 1928 through 1940, nevertheless recorded four up years in that span, including a 46.5% gain in 1933." I honestly don't think we will face a depression. We are living through a time where nothing is steadied. Everything is moving up and down. In a few years you may read papers speaking on the growth of our country.
Yasmeen Sweatte
F Block
3.38.08
Blog Post:"Depression,You Say? Check Those Safety Nets" by Charles Duhiggy was basically about,how the stock markets are spiraling, and how Alan Greenspan wrote that the economic turmoil is becoming the "most wrenching" sne World War I. It is said that, recession has already began to take place in the nation economy, and could be long and severe. Also, that the "ods of a full blown depression are almost nonexistent". That is because, so many people has spent the majority of time studying the Great Depression and trying to figure how to react if things turn out for the worse. The article, also stated, "during the Great Depression, American policy makers began actively managing the econonmy". The second article "Are We Headed for Another Great Depression" by Mike Whitney basically talks about, the Great Depression of 1929, he interviewed a lady by the name of,Eliane Meine Supkis and she talked aobut, how World War I destroyed industries, currencies, and workers in many countries during the Great Depression. Russia was one of the two empires who was effected greatly by the Great Depression, BUT had industrial power so, it has a less impact on Russia than it did on Germany. I personally think that we as Americans living in America are "HEADED FOR ANOTHER DEPRESSION" I feel this way because, just like during the Great Depression of 1929 our economy is suffering very badly and, we're losing more and more from our government each day. So soon or later, YES we will be heading for "ANOTHER DEPRESSION".
Response: I agree with Cherricka, that we're living unsteady at the time and, that is mainly because, everything is UP and DOWN nowadays...
Shaun Quinto
A common problem that will become and interesting topic in the presidential election is the fall of the US economy. The stock market has been spiraling around all over the place, foreclosures have gone up, successful corporation have faced bankruptcy. After reading these articles, in my opinion, another depression is bubbling and waiting to explode. There are so many connections and similarities between the conditions today and the conditions leading to the Great Depression. In the LA Times article, "A new Great Depression? Its different this time" by Michael Hiltzik offers these conenctions. Major asset bubbles are popping. First the stocks, and now real estate. Also, similiar to the problems banks faced, huge corposratiosn such as Ameriquest Mortgage Co. are facing bankruptcy face to face. Now, every economic shadow that is casted over America, will only add to the fear of another depression. The US needs to act now, and protect the future of this country. We can't let our power decrease, as it will lead to a vulnerable America. Depression is a serious threat, as it is backed up with statistics and trends that must be turned around quickly and efficiently. Durign February, when I traveled to London and used pounds and Madrid and Paris and used Euros, the problem was obvious. For every dollar we gave, we got back just about half of the new currency. The US dollar is declining mroe and more and we will soon start to lose other country's interest in America. In response to Cherricka, I hope she is right. There are definetly unsteady trends, with inflation and deflation, but lately the threat of the decrease in value of the US dollar has shrunken to all time lows.
Conor McGinn
The first article, "Depression, You Say? Check Those Safety Nets" by Charles Duhigg admitted that an economic recession may happen, or even have begun, but another depression as that from the early twentieth century is very highly unlikely. He states that the Great Depression in 1929 has been studied and examined so much that if the American economy even came close to another depression, action would be taken to counteract the depression.
The second article, "Are We Headed for Another Great Depression: Talks with Elaine Meinel Supkis" by Mike Whitney, was an interview in which Elaine Meinel Supkis gave the reasons she felt the U.S. economy was leading to a new depression. She stated that the government is misusing money that should be put into protecting the American economy.
I do not feel that America is headed for a new depression. I agree with the first article that too much has been and can be learned from the mistakes of the Great Depression for such an event to happen again. The fact is that we as a notion are at war. This gives people the choice of higher taxes or higher inflation. This does not mean that the nation is about to go through another great depression. "We learn from our mistakes" is one of the most repeated cliques in America, and it is too valued to allow the nation go through another great depression.
I agree with Shaun that going to other countries really shows how much the American dollar has lost value, but the dollar value has always changed, and after the war in Iraq, the American dollar will come back totally strong.
tarina meaders
3/27/08
f block
The current uncertainty that continues to surface in today's U.S. economy has provoked the alarming question, “Is the U.S. headed for another Great Depression?” The article titled "A New Great Depression? It's Different This Time", by Michael A. Hiltzik addressed this concern by exposing similarities in addition to highlighting differences among the current U.S. economy and the Great Depression. The destruction of extremely large and vital asset bubbles and the disorder of the financial system are alarming similarities. However, differences include a lower unemployment rate, the booming state of the industrial economy, and the proactive role of the government. Although a recession is possible, a Great Depression of the same length and intensity is high unlikely to emerge in today's economy.
The article "Depression, You Say? Check Those Safety Nets" by Charles Duhigg also states the unlikelihood of the U.S. returning to another Great Depression. The government has evolved from the depression and, as a result, has created many policies that provide security and will prevent such a reoccurrence. The government is now equipped and capable of preventing the economy from even entering another depression of such intensity. For example, rapid government intervention was able to prevent to borderline collapse of Bear Stearns. This article reflected the same conclusion that the U.S. will not face another Great Depression.
After reading both articles, I do not believe the U.S. is headed to another Great Depression. Although the economy is experiencing a period that reflects patterns of a recession, especially in the housing market, I feel the likelihood of experiencing another depression is unlikely. The economy is extremely diversified internationally, possesses a federal policy that provide security, and excels in government intervention. As a result, the U.S. economy will not face another Great Depression of the same length and severity.
Is the US headed for another Great Depression?
Yes, I believe the US is headed for another great depression. I think the US is spending so much time at war now. bUt then with new technology and renewable resources it is going to help save the economic situation of the war.
in the first article check the safety nets by charles duhigg he says that during the depression 25% of americans were unemployed and now unemployment is high again.
during the great depression policy makers began managing the econpmy with tools like interest rate adjustment and using government spending to spur growth.
Jobs have increased but peopl;e are not taking them because they are lazy.
In the other article a new great depression? by Michael Hiltzik, he says similar things but talks about more financial stuff. he talks about the banks and the bonds and the influence of the foreign exchange.
A fall of Economy is always questionable, especially in time of war. Prices increase while products decrease. The LA Times article, “A new Great Depression? It’s different this time” by Micheal Hiltzik explains the connections between today’s economy and the Great Depression. During the great depression stocks, land and food were very scarce. There were hardly any jobs available. It was bad to the point that people were starving. Although, it isn’t as bad to the point of mass starvation today, there are still some people who are left without food. Business/ companies are as well going bankrupt due to the lack of money and equipment. All of these aspects only show evidence towards another Great Depression. Depression is a very serious event, because it can set America back in the future, even when the Depression is over. It is the government’s job to make sure that the people are taking care off. America must look back at its past, and try to learn form it; the causes, the affects and how could it have been avoided. It is very interesting the way Shaun realized how the American dollar was declining. The Euro weighs more than the American dollar but in places like Africa and South America, The American dollar is weighs more hefty.
Ama Kwakye
Block F
The Great Depression took place around the 1920's. It was a decrease in stock market and a decrease in everyone's salary which was a drastic change because during the time people salary was very low. IN the "Depression, You Say? CHeck Those Safety Nets" by CHarles Duhigg, basically says that the United States is about to start another depression but however we can fix it . The author Supkis sayed that it can be considered a depression because the economy is sinking. I think if the Drepression was starting to happen right now , then people would actually try to stop it but just like global warming and everything else its not important until something happens. A great example of that is September 11. Why didnt we already have tight security but not to teh point taht we have no privacy. Once something traggic happens it gets taken to the extreme because its America "The Super Power". But day by day our dollar decreasing. Hopefully our new president , whoever ic choosen will make a change in our economy.As Cherricka said it is scary thinking about The Depression and of it probabaly happening now. But I dont think it will happen since America is such a powerful and strong nation. Together we can all slide away from the term Great Depression and any other crisis that is close to occuring. I really stress teh importance of the president that gets elected we need a new president for the better; and not for the worse because our world is really changing.
Melissa Coughlin
Depression is a scary thought for Americans right now. Times are getting tough with the United States' economy. I read "Depression, You Say? Check Those Safety Nets" by Charles Duhigg and "A new Great Depression? It's different this time" by Michael A. Hiltzik. Both articles explan the current economic problems that are reflected from the past. In the 1930's, occured The Great Depression. IT started with the stocks falling dramatically and people lost their jobs in a snap. The U.S. economy crumbled under itself and the American people suffered dramatically. It seems as though this could happen again in the near future of America. I believe that it will not. This is simply a recession. I do not believe it will get any worse. Although, Duhigg had a point that the same thing is happening that did happen prior to the Stock Market Crash, what was happening to the stocks is now happening to the housing market, "But as the Internet boom and recent housing bubble demonstrate, even relatively stable periods can be part of a cycle of extreme ups and downs". The second article had an interesting view, "Economists and historians say the most important difference between today's economic environment and the old days is the government's role". That is very true. Now that we have seen what caused The Great Depression, we know how to stop it. Lot's of historians focus their lives of studying The Great Depression, so they know everything about it. By knowing everything about it, we can stop another one from happening. When the company Bear Sterns was in great trouble, the U.S. government stepped in and helped them out. This is how the government would work if we were to see the begining of another depression. So, obviously I disagree with Jeff. We will not go into another Depression, it is only a small recession. Everything has it's ups and downs. Also, people are not too lazy to find jobs!
Karmila Saulong
Block F
The Articles, "Depression, You say? Check those Safety Nets" and "A New Great Depression? It's different this time" both discuss how America may be leading into a new Great Depression. The article by the times describes how America can have another Depression. Even though everyone hopes that this will not happen, many do not have a secure way of preventing this catastrophe.The value of home have gone down and one of the leading stock markets almost went bankrupt. Without the interference of the government the Bear probably would of been broke. If this trend continues more people will be laid off. With programs such as social servies and food stamps, many Americans take advantage and abuse the benefits the government offers. This regression can impact the economy of America. The LA article, points out the involvement in the economy today. This article believes there is still a possiblity that America can have a ups and down but there is a small chance that a depression will occur. But depending on the government everytime the economy is down, isn't always a great idea. Although income for Americans have been stable according to the LA Times, there has been a decline in other things such as homes. We may be headed for a Great Depression, but there is a chance that the economy can improve. The economy goes up and down and is unpredictable.Having one compant practically go bankrupt is a sign that if something isn't done now, the future of America can turn for the worse.
Short Response. I disagree with Melissa. Hopefully America doesn't go into a depression but with the economy failing like it is, there is a chance that there will be a depression. Stocks can go down.
The Roaring Twenties seemed to be a time of lasting prosperity with economic depression being the last thing on people’s minds. There were significant increases in consumption, gross national product, and stock market. However, the great depression was foreshadowed within several factors. During World War I, farmers bought land, tractors, and other machines to meet the extraordinary crop demands. They were in debt from banks and the instantaneous drop in crop demands only added to their struggle. Also, corporate workers grew exceptionally rich from the work input of industrial workers, while the workers only became less poor. More factors leading up to the great depression were credits, allowing people to pay over the course of months or years to build up more debt, and the Stock Market Crash of 1929, which resulted in the loss of billions of dollars.
Similarly, there is evidence of the US heading for another great depression. In an interview article with Elaine Meinel Supkis by Mike Whitney, “Are We Headed for Another Great Depression?”, Supkis discussed that our nation was definitely struggling with economic issues. The poor working class is unable to work their way up toward the middle class, the nation’s Federal Reserve is a mere $66 billion and dropping, Bush and the GOP are running up debts up to trillions, and people are simply having trouble paying back loans to the point of bankruptcy. “And so it is today: our empire won’t retreat from its distant borders but these same borders are bankrupting us for we never recovered from the Vietnam War, we literally papered over the mess which remained and continues to poison our nation.” However, the article, “Depression, You Say? Check Those Safety Nets” by Charles Duhigg explains the possibility of another major depression being nearly nonexistent. Though the country may be suffering from a possible recession, we have learned our mistakes from the past to not let the depression happen again. The Federal Reserve is very cautious about the nation’s economic stability along with more stable incomes of Americans.
I strongly agree with Conor that our nation has learned from our mistakes from the past. Though we are at a war and there may be slight signs of recession, it is very unlikely that economy would spiral out of control to the point of another great depression.
Loretta Au
In the early 1900s an abundance of money was being poured into stock speculation. In 1929 the stock market the stock market crashed, causing US in a depression. During the Great Depression, the economy faltered and many were unemployed. Banks were collapsing, businesses were closing, and unemployment was rising.
Today, economists agree that recession has began, but they also agree that a depression like the one in the 1930s is nonexistent. The first article, "Depression, You Say? Check Those Safety Nets" by Charles Duhigg states that the Great Depression could never happen again because of the regulations that emerged from that crisis. According to the second article, "A New Great Depression? It's Different This Time", by Michael A. Hiltzik, compared to the Great Depression, incomes are more stable now. Also, there’s social security, unemployment benefits and food stamp programs. In contrast, today’s society is more flexible.
I do not believe that America is headed for another Great Depression. After visiting Europe, I am clearly aware that an American dollar is worth far less than one Euro. Our economy is no longer the strongest like after the first world war. Despite this, there are many keys that led America to the Great Depression in 1929. Many of which can be avoided and prevents in today’s society. Some believe that the depression resulted from a contraction in the money supply. Others would disagree that it was because of the government interference in the economy. The Great Depression cannot happen again because America is stable and aware of the aspects of the first depression.
Response to Conor
I agree with you that the Great Depression is impossible to occur again because economists know more than enough to prevent another one to occur.
Ciara Gonzalez
The article “A new Great Depression? It’s different this time” focuses on the idea that America has the potential to fall into a second Great Depression. It compares the time of the Great Depression to modern times, and shows how there are many similarities in the economy. Currently the stock market prices are very unstable, and the American citizens are becoming very scared as a result. Also similar to the great depression is the fact that large companies are facing chances of bankruptcy. These, among other things, are repeats of the Great Depression of the 1930s. Although the article states that the government has stronger control than they did in the 1930s, it does not seem like the government is using it correctly. When a scare as serious as another Great Depression comes along, the government should have started making strict and immediate changes as soon as possible. There still is time to fix the issue, but the government must start quickly to make an impact before it is too late.
Response:
I agree with Shaun that we definitely have to act now before it is too late. As he said if we wait too long to act, other countries might see us as vulnerable. This definitely may lead to other countries losing interest in America, and the effect of this could only be negative.
Ashley- G+ Thoughtful, analytical and informed!
Cherrika - G+: Logical and well supported.
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