# Great Recession VS Great Depression what are the similarities



## thomasdangerpowers (Mar 2, 2012)

The world will not fall into a economic collapse just the U.S. and maybe Europe. producer nations are lending money to consumer nations to buy the producer nations goods, when they stop doing that their purchasing power will rise and they producer nations will consume their own good, you can't spend your way to wealth. Lots of false claims are out there about the great depression first of all only 2% of bank deposits were lost unlike that they make it out to be, the reason we have the FDIC to insure bank deposits, so banks make reckless loans with our deposits for high interest if it doesn't work out who cares, the government prints the money or ads credit adding to inflation problem. 25% of the population was unemployed (today 22% they DO NOT people unemployed after their unemployment's benefits run out or independent contractors because if you were never officially hired you can't be fired and more companies look to independent contractor due to cost)so the remaining 75% that had jobs experienced deflation in prices so they could buy more with their money (like today's prices to silver and gold but up in fiat money) the problem was every thing was rationed so you could only buy so much anyway. Their were many families in one house sometimes 1 family per room (today multigenerational homes are on the rise as people moving back in with parents and elder parents with their children as the cost of living goes up)and people kept everything nothing went in the trash. There were several depressions in the past before the great depression they usually were mild and lasted between 6-18 months like the depression of 1920. The gold confiscation illegal and wasn't a confiscation like door to door, they asked people to turn it in for $20 an ounce and you were fined and/or did jail time if you got caught. 1933 coins are NOT EXEMPT they executive order said rare or collectable coins but never specified what that meant intentionally so they could take anything they wanted(today their are 38% capital gains taxes to try harder to use metals and not let metals compete with the dollar as the dollar is only fiat and works as long as people trust it if prices go down or stay steady with metals more people would realize the dollars has no real value). The reason we have all these old rare coins now is because people didn't turn them in to be melted down. The "new deal" was alot of government spending that actually wasted resources that prolonged the problem. Roosevelt is seen by Austrian Economist as one of the worst presidents in history, because of uncontrolled spending, starting S.S. knowing it wouldn't work but would create a breadbasket of voters for the Democratic party like student loads (that are actually driving up the cost by using a 3rd partiy payer-the taxpayer and eliminating market the need for competitive pricing)and S.S. even if they know they can't deliver on the promise, think about it the slaughtered lots of cattle raise the price of meat to help farmers but is it a good idea when people can't afford to buy meat at the price before the rise, or pay farmers subsidies NOT to grow too much corn or wheat so the price doesn't fall? The 1929 "great depression" was make "GREAT" by government intervention it started as a small recession in 1927 Hoover refused to listen to his Andrew Melon his Secretary Treasurer to not try and prop up the economy. Roosevelt ran against Hoover criticizing Hoover on all the government spending then won and increased the same programs he criticized making the Depression so bad. It seems there was a small depression arising president Hoover acted to intervene in the free market and then Roosevelt continued the process that prolonged and make the depression worse like Bush starting the "stimulus" after the housing bubble and then with Obama's even bigger debt spending for "quantitative easing" New Deal = QE 1 & 2 thats is why we are still in a recession or as Austrians economics call it an inflated depression and that is why it is lasting so long and getting worse. in 2008 Zimbabwe went thru hyper inflation they were all trillionaires could not buy a soda, during hyperinflation in Germany it took a wheel barrow to buy a newspaper don't be fooled by stock market gains or dollar values going up, it is the value of the dollar going down so we need more to buy the same goods. all fiat "currencies" in the past have failed only silver and gold are "money"


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