What 'should' the role of the government in Great depression?
- Posted:
- 3+ months ago by BunnyCook...
- Topics:
- great, government, depression
Answers (2)
It must reduce any panic that set in due to large sections of population rendered unemployed. It must keep strict vigil on law and order and allow no disruption of
communication and distribution of goods. It must assure people that essential services like water, electricity, municipal work will be continued.
Wherever businesses are shutting down it must delay the laying off of people by a few weeks and help people find alternatives. Also it must give information on retraining and assistance for businesses to employ newer technology. All assistance should be only for those upgrade their skills to increase productivity.
Creation of the Federal Reserve in 1913 led to the excesses we call "roaring twenties". Prices approximately doubled, and the price of a cigar went from five cents to ten cents. The austerity imposed in the 1930s under the slogan "What this country needs is a good five cent cigar," caused unemployment, and the value of the dollar was restored. It is the only known example of any government trying to restore the value of the money after the introduction of paper money almost ruined it. Consumption of meat and butter increased during the so called depression, and so did donations to charities, all indications of prosperity. But people only remember the unemployment. Here is an article about a famous picture. Please notice that MOST people were doing quite well, and just didn't want the drifters hanging around.
www.cnn.com/2008/LIVING/12/02/dustbowl.photo/index.html
Here are some essays by an economist analyzing stories from that period:
www.shtfplan.com/category/howard-katz