I continue to think about the similarities between the Great Depression and the economic situtation today. First, too much can be made of the comparison. Some people would have us believe that it has never been as bad as it is now. They have forgotten Jimmy Carter. We don’t have the “stagflation” that occurred during his years. Neither do we have the 20%-plus unemployment of the Depression.
There are valid comparisons, though. One is the government’s role in each, particularly the Federal Reserve’s easy credit policies and Congress’s reaction to the crises. Congress tried to “help” recovery in the 1930s by erecting the largest tariff in American history and doubling the income tax rate on the highest earners. Today, Congress [and the administration] are trying to “help” by taking more and more control over the private sector. Yet Obama continues to say:
It’s almost amusing to see congressmen and senators huffing and puffing over the outrageous actions of corporate CEOs while they themselves are largely to blame for creating the crisis. They investigate others, while desperately attempting to distract the public from their own bad policies.
This would be far funnier if it weren’t so disastrous for the country. It’s important that we keep a sense of humor—along with our faith. Too many have a misplaced faith in our elected officials. The more I watch how government operates, the clearer it becomes that there is only One who can solve our problems.