Lessons From “the Great Depression” Are You Destined to Repeat Them? (The Great Depression Started When 7 Things Combined Together)

The Great Depression in which 25% of people in America were unemployed had their homes reprocessed and faced starvation started when 7 things combined together

1. The economy went into a slower phase in the economic cycle.

2. The Wall Street stock exchange crashed in 1929 as a result of an Insider Dealer Scam (which was small compared to Maxwell or the Enron scams) still wiped out the investment of thousands of people & several banks who had not done due diligence & just hoped that share prices would continue to go up at the same rate indefinitely. Although the stock market only charts the emotional value of a stock it must sooner or later adjust the prices of stocks back to the real value based on the firm’s actual performance (it took over 2 years for the dot com bubble to burst in 2000). Other people seeing a fall in the stock market prices feared they would have a loss so rushed to sell their stock in a falling market, thus creating an excess of supply forcing prices down more to ensure they lost money.

3. The banks made things worse by demanding repayment in full of mortgages & loans at short notice in an attempt to save their business. Banks, like other businesses without Government support, will go out of business because their reduced cash flow can not keep up with their liabilities which naturally increased as the economy slowed. By removing money from economy the banks made the slow down spiral down into economic depression

4. The belief that the Government should not intervene because markets would automatically adjust to benefit a changing society because the economic system always gives people what they are worth & new jobs will appear despite the evidence.

5. The Isolation culture of thinking “if something benefits an individual than society must benefit” regardless of what harm results from that action despite the Indian’s knowing we are all part of one interconnected web of life on our only planet. The Economic system is incapable of serving the public as long as polluters do not have to compensate those who suffer from their actions because governments do not use true accounting.

6. The lack of Understanding of Fundamental Economic Cycle (still not taught in schools) leads businesses facing hard times to downsize to cut costs to hope to wait until better times return instead of looking to increase their income by switching to more profitable products. Downsizing reduces the money flowing in the economy and signals that the business has poor management & may not be trusted to be here for long.

7. The uncertain times and the untrustworthiness of the financial sector led most people to withdraw their money from the banks which the banks could not fund as only 1% of money is held as cash by banks. So more banks collapsed so creating a domino effect run on the banks.

Although FD Roosevelt did manage to halt the downward economic spiral in 1933 by ending the hysteria & restoring hope with the “New Deal” – The Great Depression did not end until full employment was created as a byproduct of the Governments policy of creating world war two with appeasement in Europe & Isolationism (ignoring the consequences of my actions in the USA)

By 1929 the down sides of technology were beginning to become apparent. E.G. the mass production lines that Henry Ford introduced to enable the greater output by braking a process down into steps performed over & over by specialists was dehumanizing people’s work and turning it into a job (just our bodies) so had strikes despite the violent oppression from their owners.

Farm technology was also having a damaging effect on wider society.

Tractors (which developed out of the world war 1 tanks) had got cheaper due to mass production so were replacing farm workers and increasing yields initially and causing an excess of supply at harvest time thereby reducing the income of the smaller farmers who then could not keep up with their mortgages.

Tractors are best for long straight fields without ditches or hedges to provide a home for natural pest controllers like ladybirds, frogs, hedgehogs etc so hedges were removed although they protect crops from the wind and supply the crops with water from deep down where they can not reach. The larger fields of monoculture naturally attracted the pests like aphids to them & with fewer predators to eat the aphids they increased in numbers every year. A couple of dry summers combined with ploughing thin soils & the removal of hedgerows & the abundance of pests led to large areas of the mid west being turned into dust bowls collapsing the income of the area & the rural banks that depended on farmers. Thus triggering the domino effect in the banking sector.

The technological fix to the problem of falling farm production caused by technology was to apply ever larger doses of poisons like DDT until they get banded because of the harm do as they get concentrated up the food chain. The chemical industry needs to constantly come up with new products to sell to farmers like fertilizers (that contaminate our water supply disrupting the reproduction of fish & humans) so they can grow the same crop in the same field year after year; new pesticides because the old ones do not work as spaying is not ever 100% effective as does not go evenly under the leaves (where the pests live) so the pests develop resistance to the poison.

In order to survive the lack of official money circulating during the great depression over 3000 other currencies (LETS) were created to enable the local exchange of transferable skills for mutual benefit to occur.

As Einstein said “Doing the same thing over & over again yet expecting different results is the definition of insanity”

So if you have a problem you need to change your thoughts to find the solution. Why do you believe the lies you are told like “Buy this and you will have women falling for you” when Happiness is an emotion so comes from with in you?

Modern society is geared to those who know how to Make Money Work for You so get to set the nominal value that the people, who will not be able to live in retirement, have to pay for things. Money only has power over your life when you choose to accept the lies you are bombarded with by the TV.


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