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| One thing to take into consideration about the Depression era vs today is that at the time of the Depression government had not taken an active role in "salvaging" the economic problems of the day. Most of the modern programs we have today were started then. Therefore, if they prolonged the Depression with their actions then today's government would be/is compounding the problem. If debt had grown over time relatively consistent with the GDP then this wouldn't be a problem. Starting in the 80s with the all great Reagan debt started to outpace GDP more each year.
Without massive, and I mean cutting the federal budget in half today, changes to federal spending I don't know how we can fix this. Consumers, as a whole, have recognized this and are significantly cutting back on their borrowing/consumption (versus the news saying credit has been restricted). If you have good credit you can borrow, we just don't want to.
The federal government can't/won't do it. I have heard nothing from either party recommending such actions. | |
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For John Burns and others - a non partisan view of our partisan economy
