Recent class discussions and the evening news keep alluding to the decline in value of the US dollar and other marks of economic recession which may be signaling a crisis. Our upcoming study of the Stock Market Crash of 1929 and the Great Depression will certainly lead us into discussions on the question which you will focus on for this week's blog: Is the US headed for another Great Depression?
Directions:
1. Read any two of the following articles that offer varied perspectives on this weeks topic:
B) "A New Great Depression? It's Different This Time", by Michael A. Hiltzik.
LA Times, March 20, 2008.
http://www.latimes.com/news/printedition/front/la-fi-depression20mar20,1,1097237.story
C)
"Are We Headed for Another Great Depression: Talks with Elaine Meinel Supkis" by MikeWhitney. Dissident Voice Newsletter, May 12th, 2007.
http://www.dissidentvoice.org/2007/05/are-we-headed-for-another-great-depression/then
2) Summarize the key points of both articles and state your opinion on the framing question posted for this assignment, are we headed for another Great Depression? Be sure to refer from facts from the article and class to support your response.
Posts must be at least 200 words and include a response to at least one peer.
Due Friday 3/28
7 comments:
After reading the first page of the article called "Depression, You Say? Check Those Safety Nets" the author talks about the current stock markets that are spiraling and the recent increase in forclosures. He also says how many are becoming worried about a future depression and they are gathering facts about the previous depression to figure out how to deal with"the future one".Then again he speaks about all the facts and how there really could not be a future depression becuase he writes "Even if consumer confidence hit rock bottom, that most likely would not be enough, by itself, to cause a depression. For things to become really dire, the nation’s financial institutions would have to fail at the same time that unemployment began significantly rising. Only if banks suddenly closed, or it became impossible for companies to access short-term lines of credit, would things begin spiraling out of control". The second artcle I read tells us again that there will not be another depression because even though employment percentages are dropping and the dollar is slowly becoming less of what it use to be worth, we would never go back to how the rates were back then. Personally I feel the same way as the other authors tell us. We would never get as bad as it was back then, because even though gas is high and the dollar is decreasing in value, it seems to juss keep on bouncing back.
Ian Murphy
History
Block A
Recent studies seem to imply that the U.S. economy is beginning to sink into an economic depression (or, more specifically, a decline). In fact, some people are convinced that this slump could very well escalate to a critical level similar to that of the Great Depression, the greatest economic crisis the world has ever known, which lasted from 1929 to 1939. Of course, it is because of past experience and mistakes that some people believe that such a crisis can be adverted, or so they believe. Many feel confident as we are developing a global boom in employment; the rate of unemployment today is roughly 5%, whereas it was roughly 25% in the early 20th century. And then there are funds that the economy keeps in reserve in times of need--over $800 billion are produced each year today. Because such times of depression can lower the value of the corresponding area's currency, it is wise to keep enough in reserve. With these facts in consideration, people are confident that another Great Depression can indeed be avoided. Perhaps this, in addition to past experience provided by the original Depression, we truly can avoid such a grave error; we can only hope.
A new great depression? it;s different this time, was interesting and made me realize that things that are happening everyday, liek Bearn Sterns for example, are things that can lead to a depression. Many things that are happening intodays economy are looked over by many people, teens included and some times we just dont realize how bad things can get. It is scary thinking about being in a depression this day in age.
In Dissident voice, Elaine Meinel Supkis says that depressions occur after empires exhaust their finace. The United States finance is used on the war on terror in Iraq, and if the nations could just agree on somekind of peace, or agreement, the chances of having a depression coudl decrease.
In a way I agree with Tiffany that the chances of the United States going into a depresson now is small, becuase althought prices of soemthign are extremly high, we do bounce back, and with todays advancemetns and ways of life that were not the same as almost eighty years ago.
Recent studies and proof from the reading “A new depression? It’s different this time”. This reading as has helped me realize that being in a depression at this point in life is a very serious problem. Many people have studied about the problems that are going on today, and people should be more aware of it no matter what their age is. Agreeing with Samantha, going into a depression can make life in the United States very hectic. In my opinion I do not think that the U.S will go into a depression, because right now things aren’t good because we are in war, but most likely when the war ends, and the soldiers come home gas prices will go down and hopefully our dollar will be worth more.
Over all the reading has helped me be more aware about how serious going into a depression is and how much it can hurt our economy.
-mike orr
Quelmi Johnson
Block A
History
Are we headed for another depression is a question many people ask? According to the article from the New York Times website written by Charles Duhigg there are many issues today that could prove the United States is headed for another Depression. The article “Depression, You Say? Check Those Safety Nets” not only discusses the issue of recession or depression but focuses on where the United States stands today economically. In accordance with the stock markets being unstable economists concluded that a depression is unlikely.
After reading the articles I don’t think The United States is headed to a depression due to today’s society .Many people feel like the U.S. is headed for a depression because the U.S. dollar is worth less more than some other currencies and also because we are not a stronger in technology and economically as we once were.
Unlike the first article the second article “A New Great Depression? It's Different This Time" discusses how many economists believe that the U.S. will find it almost impossible to avert a recession, if one has not started already. I agree with karmila that depending on the government every time the economy is down, isn't always a great idea.
Hey, This is an extra Credit AP US History Blog Posting.
Summarize the key points of both articles
The article “A New Great Depression? It’s different this time” by Michael Hiltzik provides similarities and differences between the Great Depression of the 1930's and today. Thousands of banks in the Great Depression failed, and today banks such as Bear Stearns Cos have failed. House values continue to decline, and in South Carolina for instance “home values could plunge 40% from their peaks last year,” Michael states. Also, “Then, like now, stock prices were highly volatile,” Michael said. The article points out key difference though. For instance, unemployment rates are around 5% today compared to 25% during the Great Depression. Moreover, the government had little power to “save banks during the 30's. However, today, because of the New Deals, the government does have more power to save banks and to interfere in other areas. “Among the most important was the Home Owners Loan Corp., or HOLC, which is one of several models for homeowner relief being considered by Congress,” Michael stated.
The article “Depression You Say? Check Those Safety Nets”, written by Charles Diuhigg, describes why a full blown depression like that in the 30's is unlikely. New regulations that emerged from the crisis strengthened the overall stability of the market and economy. For instance, the government saved the bank Bear Stearns from bankruptcy. Bank reliabilty has increased since the 30's. “Much of that stability, economic historians say, stems from reforms designed to calm consumers during downturns, like the Federal Deposit Insurance Corporation, which guarantees most checking and savings accounts up to $100,000 if a bank fails,” Charles states. “Moreover, there are safety nets that can be traced to the Great Depression, like Social Security, unemployment benefits, food stamp programs. Therefore, a domino effect raising unemployment rates caused by the continuity of lowering house prices to record highs is unlikely.
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state your opinion on the framing question posted for this assignment, are we headed for another Great Depression? Be sure to refer from facts from the article
No, we are not headed for another Great Depression, but we are headed for harder times. “Today, we have a lot more flexibility and we can prop up banks and the economy to give us enough time to let things stabilize,” Professor Temin added. There are too many regulations made out of lessons learned from the Great Depression that will most likely stop another of the same degree from occurring. However, many regulations taken will only stall the problem most likely, and a depression to a lesser extent is likely.
Response to another students post
.................I’m so used to answering another student’s question.................
“I agree with karmila that depending on the government every time the economy is down, isn't always a great idea,” states Quelmi.
This is absolutely correct. Depending on the government in harsh times will only make times worse. Though, it is the responsibility of the people to improve their situations vastly when the government is trying to stall and fix economic problems. For instance, let’s say the government gives money to all citizens to spend, then they should spend and not save it. The government is doing this for a reason after all. Demand is diminishing which will lead to deflation and a depression if the people don’t follow government policies correctly.
In the first article the writer talks about the stock markets and how many stocks are dropping and the drastic increase of homes being foreclosed. Many people believe we are going through a recession right now and pretty soon a depression. This is a result of bank giving out loans to people who weren’t able to pay it back. Be he believes it wouldn’t come to that. I agree with the authors as well as Tiff, I don’t think that it can get as bad as it did back then. In the first article she states “Even if consumer confidence hit rock bottom, that most likely would not be enough, by itself, to cause a depression.” We have more knowledge about it then they did so we can prevent it from happening, we know how far this can go and we also how what we can do so we won’t go into another one. The second article basically said they same as the first. Although gas prices are skyrocketing and the dollar is worth less we cannot possibly go back to what happened years ago. The employment rate isn’t nearly as high as it was in the 1930s so we wouldn’t have a major problem with the amount of people who are unemployed. Even though I do believe that we won’t go into another depression we will experience a rise in prices of everything.
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