13 Responses to “The Great Depression – Now and Then”

1. Shauna Kaner on December 3rd, 2008 7:04 pm

   But what about Obama’s bailout plan for homeowners. That is something that will help all of us.

   My brother and my sister-in-law bought a small house in Palo Alto two years ago and can hardly make their monthly mortgage payments. What is your proposed solution to this very day-to-day problem? Do you seriously want them to move out with their newborn?

   I think that what you forget about in all this are the people. Having a sound economy is not everything.

2. Nima on December 4th, 2008 3:47 am

   No, the people are precisely what I am concerned about. Did you actually read what I wrote above? Because your comment has really nothing to do with this article.

3. Hilo on December 21st, 2008 11:32 pm

   Sounds like your brother and sister-in-law bought a house they couldn’t afford. The solution is to leave the house to the bank, and get a cheap apartment in South San Jose. In 2 years, they can buy their old house back at 50% today’s price.

4. Ebony Alford on March 16th, 2009 11:58 pm

   I just wanted to leave a quick comment to thank you for your post! I really like your blog site!!! Would you mind terribly if I put up a backlink from my site to your site? Keep up the great work!

5. Nima on March 17th, 2009 12:20 am

   Thanks Ebony. Feel free to link to any article in my blog that you like.

   Best,
   Nima

6. Burton Haynes on February 12th, 2010 11:16 am

   Great post.

7. Tim on February 20th, 2010 10:03 pm

   I am studying the Great Depression in history, and find it exceptionally odd that the only mention to FDR is that he continued Hoover’s “New Deal” policies (”New Deal” was coined by FDR, not Hoover, during the 1932 election campaign). FDR created 600′000 jobs through the Public Works Administration, helped 2.5million with the Civilian Conservation Corps. Along with other important pieces of legislation like the Tennessee Valley Authority, FDR helped lessen the effects of the Great Depression. He did not solve the problems, but he reduced them. Unemployment steadily decreased from 25% to 14.5% in 4 years, and it only started to rise again because he mistakenly attempted to balance the budget my cutting the New Deal budget. FDR did a lot to help the economy during the Great Depression, but what really solved it was when the US entered WW2, when all of a sudden mass production was required (of ammunition, weapons and food), and the economy started suddenly again. Obviously this won’t work this time because the US is already embroiled in two wars (Iraq and Afghanistan)

8. Nima on February 22nd, 2010 2:16 am

   Thanks much for your comment, it is a great example of what people are taught these days when they “study” the Great Depression. I find it interesting with how much certainty you simply repeat that hilarious story that Americans are told in school and that we are all told every night on Fox News and CNN, assuming that it would be something new to me. Good luck to you in your journey …

9. Koichi on February 28th, 2010 1:33 pm

   If the New Deal did prolong the economic crisis, then why did annual GDP recover after 1933? (Annual GDP posted 8 years of double digit growth between 1934 and 1944, period when FDR was in office). Is it solely because of the massive wartime orders from Europe? If that is the case then is it fair to say that US today, assuming the government continues to exacerbate the economy via intervention, will recover at a slower pace than it did after WWII barring major aid from countries outside?

   On the contrary, according to your most up-to-date “True Money Supply Change (YoY)” chart, the money supply change has not hit negative level as it did during the Great Depression. Not to mention, it looks a lot more stable. Does this mean that the current crisis is not as bad as the Great Depression? Or do you foresee a big spike down in the near future?

   Thanks in advance for your thoughts.

10. Seb on August 4th, 2010 10:17 pm

    “The US economy remains in a miserable state with above double digit unemployment until 1938 and with a horrible war lasting from then through 1945 during which people are forced to ration consumption and pay up to 90% taxes.”

    I’m not sure quite what you mean by this. The US didn’t enter the war until 1941 (remember pearl harbor?), and didn’t begin rationing consumption until 1942.

    Overall, though, a lot of good point and astute observations, but if I were you I’d be careful about making the same sort of reactionary and shortsighted judgments that you notice others making.

    Good Luck.

11. Nima on August 5th, 2010 12:42 am

    I sure remember Pearl Harbor and I also remember the sea blockade enforced by the US government which was one of the main reasons as to why the Japanese government ordered the suicide attacks.

    Thanks for the historical corrections on my dates. I do appreciate them!

12. forex on August 24th, 2010 1:43 pm

    Thanks for the historical corrections on my dates. I do appreciate them!

13. Remaley on January 13th, 2011 5:51 am

    love blog very much

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