Nine Reasons to be Concerned

by Jack West

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Drawing comparisons to the Great Depression is a valid analysis of our current economic state, but where this current crisis diverges from recent history is much more ominous. These nine factors will make the Great Depression look like a cake walk compared to what we may be facing.

1. The United States operated within a budget up until that time. At the beginning of the Great Depression there was no budget deficit. Even Democrats didn't expect to pay for their government and borrow on the backs of future tax payers. We ran a balanced budget or a surplus, and we weren't spending billions to finance our debt. We couldn't just print money. If we were inclined to print money we had to sell bonds to finance those expenses. Generally accepted accounting principals were used to run our government finances. NOT SO TODAY!

2. The United State had a trade surplus. In 1929 we were exporting far more goods and supplies than we imported. Other countries bought our products and our willingness to accept their currency created world stability in financial markets. Those other markets needed to be stable in order to purchase our products, and our products were a necessity. Made in the USA was the standard for quality. Today 95+ percent of the products we buy are imported.

3. The world economy wasn't dependent on US foreign aid. Countries that traded with the US did so because they had something to trade. Countries that traded with the US or anywhere around the world were required to have some economic output in order for them to have something of value to sell and give some stability to  their local currency and economy. Today the world is buying foreign goods(primarily oil and Chinese products) with US foreign aid which we never expect to be repaid. It has become an open wound hemorrhaging billions away from US families and devaluing our currency.

4. No one in the United States lived on government largess. There was no welfare, aid to dependent children, food stamps, public housing, social security, medicare, or unemployment compensation. Everyone fared for themselves and when people were overcome with hardships, their family or faith based charities provided relief. When a person was out of work, it was incumbent on them to get employed, as soon as possible. When they did accept charity, it was always understood to be temporary relief. As long as a person was able to work, he or she worked. Disability was truly only for someone on their death bed. Being productive was expected, being nonproductive was a public shame. Today being nonproductive is a badge of honor. Today people expect the government to take care of them, and they are not ashamed to ask for it, even demand it.

5. In 1929 there were no credit cards. When a bank loaned money it was to finance a new business, or buy a house. Nobody borrowed money to buy nonessential junk. People didn't live on credit in 1929. Even during the Reagan years we were not inclined to use credit the way we have since that time. This is a total 180 degree opposite of how this economy has run for the last 25 years.

6. In 1929 we were on a gold standard. Even though we experienced a set back, our currency was backed by gold. Our coins were silver and had value. In spite of the depression, gold, silver and real estate retained value, even though it was depressed, our currency retained value, although FDR took us off the gold standard in 1934 and made it illegal to own gold. This paper money and electronic funds poofed into existence by our new President will have repercussions.

7. People had faith in God. Churches provided family support, hope and comfort. Community churches were an integral part of the community. Personal hardships brought on by reckless living provided an example for others, and humility for those who found themselves in need. Today there is no humility. There is very little faith.

8. In 1929 the majority of Americans still lived on small subsistence farms. Even in spite of the Great Depression they were able to feed themselves and provide some sustenance. They even had some to share. Only in the cities were soup lines necessary. Today people don't know how to provide for themselves, and they don't care. They will demand someone to feed them, cloth them, and house them, and if that is not forthcoming they will descend into anarchy.

9. Unemployment compensation. As more and more people become displaced from their jobs, a never ending spiral will begin as the country prints more money to pay their unemployment benefits. Backed by nothing but good intentions our currency will collapse.

Today there is no humility, there is no faith, there is no willingness to work, there is no shame, there is no soul left for America, only a reckoning to set this nation back on a course we long since abandon. This will be exciting. Brace yourself for what's coming.