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Politics : Formerly About Advanced Micro Devices

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To: TimF who wrote (190553)	6/17/2004 7:00:18 PM
From: tejek	Read Replies (1) of 1575933

The industrial mega-factories had the capacity to generate more goods than the consumers were ready to consume. If too much is produced the price goes down to increase demand and decrease supply. The resources that where producing too much of one thing go to produce another. All of this causes disruption but not a decade long depression. Similar sharp downturns had occurred a number of times before the depression. But there was not a combination of increases in tariffs, higher income taxes, and tighter money in response to the economic downturn, nor was their the vast increase of government control over the economy in earlier "panics" and "depressions". You didn't have the government ordering food destroyed or sending people to jail for providing a discount. Not only where such actions abusive and bad policy they where also ill timed. Destroying wealth and strangling commerce with regulation when things are going bad anyway is a disastrous policy. Your premise is a weak one. First, panics/depressions in the 19th century often went as long as 8-10 years. The Great Depression was not unique in that regard. What made the GD unique was because it hit at a time when the country was fully formed and people were more likely to be working for someone else as opposed to self employed. Unemployment reach new highs while people had no resource to sustain themselves. During panics of the 19th century, many more people were self employed and self subsistent. They weren't as dependent on the national economy. So they did not suffer as badly. However, by the 1930s, the econ. structure of the country had changed dramatically. As for your perennial contention that gov't was the cause of the depression because of over regulation.......I would suggest that the economy is more regulated now with much less ups and downs in econ. performance than occurred all thru the 19th century right up to the 1930s. That gov't has been responsible for making private industry more responsible. Some aspects of gov't regulation may have contributed to the problem but its ridiculous to ignore the fact that a production bubble had developed in the economy not unlike the telecom bubble in the late 1990's due to private industry's poor forecasting of supply and demand. Much like in the late '90s, CEOs in the '20s thought the good times would go on forever. Coinciding with that, was the bubble that developed in the stock markets due to gov't under regulation. Other lesser conditions contributed to the econ. malaise. Its your tendency to blame gov't for all the bad in the world but I would suggest that private industry shares the burden. ted

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