Well that’s the belief of 60% of 1,000 Americans polled by CNN. Those polled cited their shabby memories of grade school American history class as their primary reason for fears of breadlines and Hoovervilles.
According to the report from CNN, those fears may be just a teensy bit overblown. The unemployment rate in the 30’s reached as high as 25%. Today, however, that rate stands at 6.1%. Though, according to “experts contacted by CNN,” that rate could reach as high as 12% next year. Also, bank failures have not been as widespread as in the 30’s, but there have been some high level bank snafu’s. That’s enough to freak anyone out. Never-the-less:
Part of the reason for the far less severe economic pain expected this time is there are many social safety net programs not in place at the start of the Great Depression, including Social Security, unemployment insurance and insurance on bank deposits.
And experts on the Depression believe that the Federal Reserve and other officials made many policy mistakes that are not likely to be repeated. In fact, the Fed at that time kept lending tight, while today’s Fed is pumping hundreds of billions of dollars into the banking system to try to restart lending and spur economic activity.
Well, anything CNN can do, we can do better! What do you think, Blogtownies? Hit the Mercury/Assface & Johnson Research Associates poll below and weigh in! And by the way, you can find stories from our Depression Themed Food Issue on-line. Some great tips for eating cheap!
ARE WE HEADED FOR A DEPRESSION?
I’ll hedge a bit…A depression? Yes. A depression on the scale of the “Great Depression”? No.
Oh, we are on our way. Anyone who is in small business is aware. Times are bad and we haven’t even touched the edge of the iceberg. Wait until there is no “retail” recovery in December.
Why do you think we are immune from the same greed that brought the “Great Depression”. Listen to people. Hear their words. We have met the enemy and it is us.
This is the way the world ends
This is the way the world ends
This is the way the world ends
Not with a bang but a whimper.
“Remember one thing about democracy. We can have anything we want and at the same time, we always end up with exactly what we deserve.”
Edward Albee
Do not doubt it. We are on our way. If we do not understand our history, we are doomed to repeat it.
Overlook Julie