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Few people remember the Hard Times
of
the Thirties. Fewer
sti/1 understand the root CAUSES
of
depression- or inflation.
Many critica/ money problems are sti/1 with us today! This
article explains the seriovsness
of
today's volatile economic
situation and the possible consequences for tomorrow.
by
Gary A lexander
R
EMEMBER,
the Great Depression?
Probably not unless you're about
fifty years old. "The crash" as
it's called occurred in
1929.
That means,
if you are
51
years old
NOW -
you
were only a boy of
len
when it
occurred.
Since about half of the population is
currently under twenty-seven, it means
most people have only read about the
erash.
To young people the Great Depres–
sion ís ancient history. What they do
not know is that the
calfJeJ
of this long–
forgotten "crash" are still with us
today. These causes threaten once again
to assert themselves, not necessarily by
a depression, but
po11ibly
by runaway
inflation.
It's time we took a criticallook at the
Depression - at both the causes and
the effects - and asked ourselves how
Keystone Photo
vulnerable we are to a new kind of
economic shipwreck.
Worldwide Repercussions
The consequences of the Depression
were worldwide. Then, as now, "When
America sneezed, the world caught
pneumonia." In
1970,
this is evident in
worldwide
inflation,
exported to the
world in the form of weak U. S. dol–
lars. In
1930
it was evident
in
an
exported depression, partially caused by
the huge drop in U. S. imports, exports,
and foreign aid.
World unemployment (in industrial
countries) shot up from a "near nor–
mal" five million in
1929,
to a cata–
strophic total of
20
or
25
million just
one year later.
Unemployment was only one