Labor Participation Rate Lowest Since 1978 - Yet there are 10 Fold More Working Mom's Now!!!

[Dad2three]

The consensus is the conservatives "hands off" approach and easy credit after WW1 ALLOWED the great depression to happen!!

$10,000 if the liberal liar can prove that. Bet??

Bubba, I can't in good conscious take your food stamps!

People with thinking minds that haven't bought into your psychosis get it!


Conservative ideology requires either ignorance, stupidity, denial or psychopathology….& maybe all of the above

translation: I was lying like a liberal when I said there was a consensus that conservatism had caused the Depression and thought I could change the subject to fool everyone when in reality I only fooled myself.

THE ACTUAL POSIT BUBS:


The consensus is the conservatives "hands off" approach and easy credit after WW1 ALLOWED the great depression to happen under Harding/Coolidge, who CHOSE not to reign in the credit bubble. Like Ronnie's S&L and Dubya's subprime bubble, banksters, allowed by the GOPers caused them!!!!

 

[EdwardBaiamonte]

The consensus is the conservatives "hands off" approach and easy credit after WW1 ALLOWED the great depression to happen !

if true I"ll pay you $10,000. Bet or run away once again with your liberal tail between your legs once again.

 

[Dad2three]

The consensus is the conservatives "hands off" approach and easy credit after WW1 ALLOWED the great depression to happen !

if true I"ll pay you $10,000. Bet or run away once again with your liberal tail between your legs once again.

Gawwwd you are a moron. How do you "prove this" Bubba? It's ACCEPTED knowledge among historians for 80 years, excepting the last 25 the right wing has ATTEMPTED to take blame away from conservative policy. Weird right?

A quick read of history during the First Gilded Age (we are now in the Second Gilded Age) or the Great Depression should quickly dispel any magical thinking regarding free market miracles….”Voodoo Economics,” as the first President Bush said in a moment of truth & clarity.

 

[Dad2three]

The consensus is the conservatives "hands off" approach and easy credit after WW1 ALLOWED the great depression to happen !

if true I"ll pay you $10,000. Bet or run away once again with your liberal tail between your legs once again.

The 1920s Credit Bubble



More and more observers are noting similarities of our housing/credit crunch to the 1920s. Even a diary yesterday was entitled, "The Great Debt Crisis Begins". Sure, you know that investors bought stocks on 90% margin in the 1920s, but are you familiar with the real estate boom, and even moreso the tremendous consumer credit boom, the unraveling of which had so much to do with making the recession worse when it hit in late 1929?

Like the present day, the 1920s was an era of technological innovation (cars, radios, mass production), financial innovation (installment buying), and employer productivity. It also almost exactly matched today's disparity of wealth, as the benefits of worker productivity were hoarded by corporations and the wealthy.

In this economic history diary, I explain the preternatural, eerie similarities of the 1920s credit boom to our own. We have indeed passed this way before.



I. The Great Inequality of the 1920s mirrored our own time

A Statistical Portrait of the 1920s shows a vibrant and expanding continent-wide economy, that represented the largest creditor nation on the planet, but marred by a very unequal distribution of wealth:

While productivity surged over 30% in that period, worker's incomes increased only 11%.

Moreover, over 70% of American families lived in relatively strapped conditions according to the statistical abstract. The financial gains of the 1920s were vaccuumed by the very top strata:

Minimum income deemed necessary for a decent family standard of living: $2500

Percentage of American families with incomes under $2500 in 1929: 71%

Distribution of Wealth

Rise in per capita income for nation as a whole: 9%

Rise in per capita income for top 1% of population, 1920-1929: 75%

Percentage of savings held by top .1% of Americans: 34%

Percentage of savings held by top 2.3% of Americans: 67%

Percentage of American Families with no savings: 80%

[Today, the top .1% once again owns 34% of the wealth; the top 5% owns 60%.]

Or, as more fully set forth in Main Causes of the Great Depression

the rewards of the "Coolidge Prosperity" of the 1920's were not shared evenly among all Americans. According to a study done by the Brookings Institute, in 1929 the top 0.1% of Americans had a combined income equal to the bottom 42%...


Three quarters of the U.S. population would spend essentially all of their yearly incomes to purchase consumer goods such as food, clothes, radios, and cars. These were the poor and middle class: families with incomes around, or usually less than, $2,500 a year. The bottom three quarters of the population had an aggregate income of less than 45% of the combined national income; the top 25% of the population took in more than 55% of the national income.

If, exactly like today, the middle and working classes were not sharing in the huge expansion of overall wealth in the 1920s, from a truly robust and growing national economy, there was another innovation which allowed them to at least think -- again, just like today -- for a while that they were on their way to riches: installment consumer credit.

II. The 1920s Credit Bubble spawned 3 asset bubbles

In a major paper by the Bank for International Settlements, "The Great Depression as a Credit Boom gone Wrong" Barry Eichengreen and Kris Michener (2003) set forth how the dramatic expansion of credit in the 1920s set the stage first for overconsumption, and then the drastic decline of the great depression:

The 1920s was a decade of expansion, reflecting recovery from World War I, new information and communications technologies like radio, and new processes like motor vehicle production using assembly-line methods. Accounts of the twenties in the United States ... emphasize the ready availability of credit, reflecting the ample gold reserves accumulated by the country during World War I, the stance of Federal Reserve policies, and financial innovations ranging from the development of the modern investment trust [i.e., mutual fund] to consumer credit tied to purchases of durable goods like automobiles. Credit fueled a real estate boom in 1925, a Wall Street boom in 1928-9, and a consumer durables spending spree spanning the second half of the 1920s.

Let's examine these bubbles one at a time. III. The 1920s real estate bubble

The 1920s Credit Bubble

 

[EdwardBaiamonte]

It's ACCEPTED knowledge among .

dear you said there was a consensus. Show us evidence of a consensus or admit you lied.

 

[Dad2three]

It's ACCEPTED knowledge among .

dear you said there was a consensus. Show us evidence of a consensus or admit you lied.

lol, You moron

YOUR posit:

"the consensus for free trade started when the lack thereof caused the Great Depression with Smoot Hawley. "




PLEASE PROVE YOUR NONSENSE AND JUST ADMIT (AS WE ALL KNOW) YOU ARE NOTHING BUT A MORON!



Tariff Act of 1930

Long title An Act To provide revenue, to regulate commerce with foreign countries, to encourage the industries of the United States, to protect American labor, and for other purposes.
Nicknames Smoot-Hawley Tariff, Hawley-Smoot Tariff
Enacted by the 71st United States Congress
Effective March 13, 1930

Smoot Hawley Tariff Act - Wikipedia the free encyclopedia



The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939.



Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929. During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929. Besides ruining many thousands of individual investors, this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios. Many banks were consequently forced into insolvency; by 1933, 11,000 of the United States' 25,000 banks had failed.


Almost all nations sought to protect their domestic production by imposing tariffs, raising existing ones, and setting quotas on foreign imports.


At least in part, the Great Depression was caused by underlying weaknesses and imbalances within the U.S. economy that had been obscured by the boom psychology and speculative euphoria of the 1920s. The Depression exposed those weaknesses, as it did the inability of the nation's political and financial institutions to cope with the vicious downward economic cycle that had set in by 1930. Prior to the Great Depression, governments traditionally took little or no action in times of business downturn, relying instead on impersonal market forces to achieve the necessary economic correction.


About the Great Depression

 

[Centinel]

Oh, and you failed to defend the feckless GOP's failed "free markets" dogma either.

I should not think that freedom required any defense.

 

[Dad2three]

Oh, and you failed to defend the feckless GOP's failed "free markets" dogma either.

I should not think that freedom required any defense.

Don't understand the difference with free markets versus freedom, that right wing meme that means exactly what again? Oh right nothing but the rights desire to run roughshod WHILE not paying taxes!

 

[EdwardBaiamonte]

PLEASE PROVE YOUR NONSENSE AND JUST ADMIT (AS WE ALL KNOW) YOU ARE NOTHING BUT A MORON!

dear, changing the subject does help you evade the lie you told!!!!

 

[Centinel]

Oh, and you failed to defend the feckless GOP's failed "free markets" dogma either.

I should not think that freedom required any defense.

Don't understand the difference with free markets versus freedom, that right wing meme that means exactly what again? Oh right nothing but the rights desire to run roughshod WHILE not paying taxes!

If one opposes free markets then one opposes freedom.

 

[EdwardBaiamonte]

that means exactly what again?

it means not having a liberal like Hitler Stalin or Mao with a gun forcing you to do what he wants. Now do you understand why liberals hate America and spied for Hitler and Stalin??

 

[EdwardBaiamonte]

If one opposes free markets then one opposes freedom.

this is true!! The liberals wants to be free to buy from Steve Jobs and then be free to use govt to steal the money back!!.

 

[Dad2three]

Oh, and you failed to defend the feckless GOP's failed "free markets" dogma either.

I should not think that freedom required any defense.

Don't understand the difference with free markets versus freedom, that right wing meme that means exactly what again? Oh right nothing but the rights desire to run roughshod WHILE not paying taxes!

If one opposes free markets then one opposes freedom.

Libertarians are frauds and parasites but unfortunately have been successful in hiding their dangerous disease under war hating, and freedom loving. Sadly their freedom isn't freedom, it is chaos and opens the door to a real loss of democracy.

They unwittingly use the protections, benefits and accomplishments government has to offer to create their fortunes, while pompously declaring they did it all on their own.

Clueless igets, everyone.



(Re-)Introducing: The American School of Economics


When the United States became independent from Britain it also rebelled against the British System of economics, characterized by Adam Smith, in favor of the American School based on protectionism and infrastructure and prospered under this system for almost 200 years to become the wealthiest nation in the world. Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression and again in the 1970s culminating in the current Economic Meltdown.



American School of Economics

Closely related to mercantilism, it can be seen as contrary to classical economics. It consisted of these three core policies:

protecting industry through selective high tariffs (especially 1861–1932) and through subsidies (especially 1932–70)

government investments in infrastructure creating targeted internal improvements (especially in transportation)

a national bank with policies that promote the growth of productive enterprises rather than speculation


Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders

The goal, most forcefully articulated by Hamilton, was to ensure that dearly won political independence was not lost by being economically and financially dependent on the powers and princes of Europe. The creation of a strong central government able to promote science, invention, industry and commerce, was seen as an essential means of promoting the general welfare and making the economy of the United States strong enough for them to determine their own destiny.


American School economics - Wikipedia the free encyclopedia

 

[EdwardBaiamonte]

Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression

of course your cut and paste is stupid
and illiterate and liberal . All agree that Hawley Smoot collapsed free trade and help cause the Great Depression

 

[Centinel]

Oh, and you failed to defend the feckless GOP's failed "free markets" dogma either.

I should not think that freedom required any defense.

Don't understand the difference with free markets versus freedom, that right wing meme that means exactly what again? Oh right nothing but the rights desire to run roughshod WHILE not paying taxes!

If one opposes free markets then one opposes freedom.

Libertarians are frauds and parasites but unfortunately have been successful in hiding their dangerous disease under war hating, and freedom loving. Sadly their freedom isn't freedom, it is chaos and opens the door to a real loss of democracy.

They unwittingly use the protections, benefits and accomplishments government has to offer to create their fortunes, while pompously declaring they did it all on their own.

Clueless igets, everyone.



(Re-)Introducing: The American School of Economics


When the United States became independent from Britain it also rebelled against the British System of economics, characterized by Adam Smith, in favor of the American School based on protectionism and infrastructure and prospered under this system for almost 200 years to become the wealthiest nation in the world. Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression and again in the 1970s culminating in the current Economic Meltdown.



American School of Economics

Closely related to mercantilism, it can be seen as contrary to classical economics. It consisted of these three core policies:

protecting industry through selective high tariffs (especially 1861–1932) and through subsidies (especially 1932–70)

government investments in infrastructure creating targeted internal improvements (especially in transportation)

a national bank with policies that promote the growth of productive enterprises rather than speculation


Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders

The goal, most forcefully articulated by Hamilton, was to ensure that dearly won political independence was not lost by being economically and financially dependent on the powers and princes of Europe. The creation of a strong central government able to promote science, invention, industry and commerce, was seen as an essential means of promoting the general welfare and making the economy of the United States strong enough for them to determine their own destiny.


American School economics - Wikipedia the free encyclopedia

You seem to be opposed to free markets, so I assume you also oppose freedom. I hold that my fellow man ought to be free to act as he wishes so long as he doesn't violate the borders of anyone else's person or property.

 

[EdwardBaiamonte]

Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders

of course thats a stupid liberal lie. We can all look up the commerce clause and see exactly what was intended, and learn it was next to nothing.

 

[Dad2three]

Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression

of course your cut and paste is stupid
and illiterate and liberal . All agree that Hawley Smoot collapsed free trade and help cause the Great Depression

Dunmmy goes friom THIS posit:

"the consensus for free trade started when the lack thereof caused the Great Depression with Smoot Hawley."


To this:


"All agree that Hawley Smoot collapsed free trade and help cause the Great Depression"



YOU MORON

Attention all proponents of the “invisible hand” panacea for every socioeconomic problem: It does not work! AND IT'S BAD PUBLIC POLICY, AS HARDING/COOLIDGE/REAGAN AND DUBYA SHOWED WITH THEIR BANKING COLLAPSES!

 

[Dad2three]

Oh, and you failed to defend the feckless GOP's failed "free markets" dogma either.

I should not think that freedom required any defense.

Don't understand the difference with free markets versus freedom, that right wing meme that means exactly what again? Oh right nothing but the rights desire to run roughshod WHILE not paying taxes!

If one opposes free markets then one opposes freedom.

Libertarians are frauds and parasites but unfortunately have been successful in hiding their dangerous disease under war hating, and freedom loving. Sadly their freedom isn't freedom, it is chaos and opens the door to a real loss of democracy.

They unwittingly use the protections, benefits and accomplishments government has to offer to create their fortunes, while pompously declaring they did it all on their own.

Clueless igets, everyone.



(Re-)Introducing: The American School of Economics


When the United States became independent from Britain it also rebelled against the British System of economics, characterized by Adam Smith, in favor of the American School based on protectionism and infrastructure and prospered under this system for almost 200 years to become the wealthiest nation in the world. Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression and again in the 1970s culminating in the current Economic Meltdown.



American School of Economics

Closely related to mercantilism, it can be seen as contrary to classical economics. It consisted of these three core policies:

protecting industry through selective high tariffs (especially 1861–1932) and through subsidies (especially 1932–70)

government investments in infrastructure creating targeted internal improvements (especially in transportation)

a national bank with policies that promote the growth of productive enterprises rather than speculation


Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders

The goal, most forcefully articulated by Hamilton, was to ensure that dearly won political independence was not lost by being economically and financially dependent on the powers and princes of Europe. The creation of a strong central government able to promote science, invention, industry and commerce, was seen as an essential means of promoting the general welfare and making the economy of the United States strong enough for them to determine their own destiny.


American School economics - Wikipedia the free encyclopedia

You seem to be opposed to free markets, so I assume you also oppose freedom. I hold that my fellow man ought to be free to act as he wishes so long as he doesn't violate the borders of anyone else's person or property.

I'm sure YOU do Bubba. It's nothing but a fantasy that's been disproved over and over. Ayn Rand wrote fiction, when you graduated high school you should've grown out of the fantasy stage of life!


HOW DID THE "FREE MARKETS" work out in the latest example of the world wide credit bubble and bust again?

 

[EdwardBaiamonte]

Attention all proponents of the “invisible hand” panacea for every socioeconomic problem: It does not work!

dear Smoot Hawley collapsed the free trade invisible hand and helped cause the Depression. Do you think Smoot Hawley
prevented the Great Depression.

See why we say the liberal will be stupid??

 

[Dad2three]

Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders

of course thats a stupid liberal lie. We can all look up the commerce clause and see exactly what was intended, and learn it was next to nothing.

Don't understand the difference of the commerce clause and the actual constitutional convention? I''m not surprised Bubba! ;