That's a stadium of people....
Today alone, 70,000 people lost their jobs. 70,000 people are going to have to file for unemployment. 70,000 people are going to be looking for other jobs. 70,000 people have no idea what is going to happen in the future.
In one day....
Despite what your hearing, despite what is being said, this didn't happen in the 80's....this happened during The Great Depression.
Doomsday me til my eyes turn blue. I don't know about you, but my ass is getting educated on the happenings of that time in history. So here's a little lesson:
Effects of depression in the United States[39]:
- 13 million people became unemployed.
- Industrial production fell by nearly 45% between the years 1929 and 1932.
- Homebuilding dropped by 80% between the years 1929 and 1932.
- From the years 1929 to 1932, about 5,000 banks went out of business.
- By 1933, 11,000 of the US' 25,000 banks had failed.
- In 1933, 25% of all workers and 37% of all nonfarm workers were unemployed.
- Between 1929 and 1932 the income of the average American family was reduced by 40%.
Here is how it was solved:
In the United States, the massive war spending (WW2) doubled the Gross National Profit, either masking the effects of the Depression or essentially ending the Depression.
Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts.
Productivity soared: most people worked overtime and gave up leisure activities to make money after so many hard years. People accepted rationing and price controls for the first time as a way of expressing their support for the war effort.
Cost-plus pricing in munitions contracts guaranteed businesses a profit no matter how many mediocre workers they employed or how inefficient the techniques they used.
The demand was for a vast quantity of war supplies as soon as possible, regardless of cost. Businesses hired every person in sight, even driving sound trucks up and down city streets begging people to apply for jobs. New workers were needed to replace the 11 million working-age men serving in the military.
These events magnified the role of the federal government in the national economy. In 1929, federal expenditures accounted for only 3% of GNP. Between 1933 and 1939, federal expenditure tripled, and Roosevelt's critics charged that he was turning America into a socialist state. However, spending on the New Deal was far smaller than on the war effort.
So, there you have it. In order to solve the Economic Crisis, all we have to do is start World War III.
One Love,
Jamie
