The upcoming depression

These are some comments on the upcoming depression. This is not to say the depression is inevitable, but rather that the current direction of society it toward a depression, and I see more people defending the courses of action which lead to depression than trying to understand why.

This depression can be compared to the depression of the 1930's. In both cases the cause of the depression is the same. That is, people want to get something for nothing, and are willing to believe other people when they are told it can be done. In the 1920's it was the stock market - "the price of stocks can never go down" so people borrowed money to buy stocks thinking they could pay back the loan with the money earned. Some could, but it became a big Ponsi scheme.

In fact, the term "Ponsi scheme" originated during this period of extravagance.

The current attitude of people is the same, they believe the people who tell them they can get something for nothing. In this case, the statement is "tax cuts will stimulate the economy." I have already written a page showing this is not the case. But just as in the twenties the people still believed the stock market could not go down despite a few small downward turns before the big one, so now people want to believe the government can continue to supply services without anyone paying for it even as services such as education are being cut.

There is one major difference, however, which will likely cause the upcoming depression to be much worse.

In the 1930's congress made some window dressing attempts to solve the problem. In reality, they attacked the symptom in a big way, adding regulations on the stock market. That is, congress used this as an excuse to take powers which they had never before had. Rightfully or wrongfully, people allowed the congress to assume the power of regulating the stock market. And congress has always enjoyed taking more powers.

However, the upcoming depression is caused by the government. Even the symptom above is a governmental problem. The only way to solve the problem will be for congress to face the real issue head on, and solve it. Or, much rather, congress will have to either face the real issue, or give up power - the power to push the United States into debt. I have already written a page suggesting a solution to the symptom. On this page I point out that the solution is for congress to give up the power to borrow money.

To a large extent the real problem cannot be solved by congress. Greed requires a change in the attitudes of the people that congress cannot really change. It is possible, however, for congress to point in the right direction by stopping the rewarding of greedy people.

When is the last time congress gave up a power it has assumed? I think I can safely say it is rare (although not unheard of). In any event, it was difficult.

This is further complicated in that the people of the United States has chosen to allow congress to become a career. That is, some people have a career of being congressmen, and these people are some of the greediest around. This being the case, it will require congress to give up some of their money. Since congress will be hesitant, as most selfish people are, to give up the power, the solution will be long in coming.

Meanwhile, the economy will continue to deteriorate. There are two forces at work, and the big question is which will take longer, the selfish congressmen, as I mentioned above, or those people who would be willing to overthrow the government by force if needed.

The latter option may actually cause congress to act. If their cushy positions are going to end anyway, they might be spurred to action despite their financial stake in the outcome. Most people would choose to live over choosing to be rich.