The True Causes Of The Great Depression

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The true causes of the Depression are still with us. Personal debt, workers demanding higher wages (often without producing any more), business cutting corners, employee theft, and speculation. If you want to see how the economy of the future will be, specialists believing that we have to watch the way people as a whole are dealing with each other and how they live their own lives. In other words, are workers producing more, are employee and shoplifting thefts down, are we borrowing less, is the federal economy in the black? The top economists scoffed when he said, on September 5, 1929, "Sooner or later a crash is coming and it may be terrific... factories will shut down... men will be thrown out of work... the vicious circle will get in full swing and the result will be a serious business depression" (John Kenneth Galbraith, The Great Crash, Houghton-Mifflin, 1955, pp. 89-90). Government economists, on the other hand, seemingly clambered over each other to reassure the many paper-thin speculators that such talk was impossible, unthinkable. If you ask top economists about the 1970 situation, you will get every spectrum of opinion from "worst financial situation since 1931" to "What recession? This IS just an 'adjustment period.'" Harvard's John Kenneth has frequently warned of another economic …show more content…

The future crisis could be caused by a poor crop year. Or in the next crisis might result from international causes: trade war, dollar devaluation, nationalizing of foreign businesses, or a run on gold. Today's world economic situation is much different from that in 1930. Presently, inflation, not depression, reigns worldwide. If a crisis strikes in the 1970's, it will probably be an "inflationary depression." But regardless of what the effects are, the cause is the same — improper money, production, and resource management motivated by human greed for

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