and 1920 depression ended by a great devastating war so that means if we continue with the crashing of the stack market today only a new war could save us
One of the biggest contributing factors you didn't mention was the fact that it was legal and practiced for general banks to invest in stocks...so when the stock market collapsed, it wiped out most people's savings overnight.
@@basedcousinbalki8664 but the guy forgot to make it so that the banks would be held accountable if they fuck something up. So basically, invest in stocks but if you cause a crash, The government will bail you out
You didn't mention the issue where banks would basically give huge loans to nearly anyone (which obviously were never paid back). This caused them to be in such bad fiscal states that they would forclose on people that were actually making their payments on time, as the banks basically demanded that everyone pay them back in full.
MegaZeroX7 meanwhile, rich bankers stole everyone’s savings to stop the first crash of 1929- by using the stolen savings to buy stocks, to keep their prices from plummeting.
Those who dont learn history are doomed to repeat it. People care for the now, potential what if's without looking at previous "oh shot" moments in time
They also took that money and put it in the stock market so when it crashed the bank lost the money, which was the money people put into it for storage. The laws ment to stop that are sadly in the process of being undone or are already gone.):
Sadly people in my country see history as a pointless topic and shouldn't even be taught in schools. Now look at the Philippines, my beloved nation. It keeps repeating it's same mistakes because people don't want to learn from their past mistakes.
Easy to say when your country isn't being bombed to the ground and your kids aren't on fire because the enemy keeps dumping napalm on you to convince your leaders to give up. Why do you think so many vets are traumatized by war, it's fucking horrible.
@@dylanhaugen3739 dude America is going to pay back like all European nations who invaded and killed innocent they are going to crash and burn hell WHY do you think America and other countries imperialism are full of retarded snowflakes citizen and gay guys and etc etc etc This nations is worser than Germany Nazi it was better any way don't flow them and let them being snowflakes and retarded now they come to our land they dead to the last snowflakes
What was crazy about the dust bowl is that in a lot of those areas in my home state of Oklahoma we had only recently fully recovered from the depression. The great depression changed our politics by making us SUPER DEPENDENT on federal money and made us a very prison and military base dense state.
there probably wouldn't be a ww2. because of the great depression, the dawes plan american loans had to be called in short from germany and it crippled it's economy that just recovered under stresemann. because of these events the nazi party gained a lot of seats in the reichstag.
The answer to that question would be : if great depression did not happen 2+2 would be equal to 5. Great depression was mathematically and logically inevitable consequence of free market and capitalism.
A lot of people are in love with bitcoin because it’s not government issued because, hey, the gubbmint can’t do anything right! Yet there is a reason cash has outlasted all other contenders.
YoloBagels paper and coins have the backing of the US government. I don’t consider myself a “radical communist socialist” by any means, but I honestly would take the backing of the US government over many a private entity. And I also believe that the government issuing currency actually makes commerce far simpler with a centralized currency instead of having to change currency every time you cross a state line.
lukepyung 1 Isn't all money temporary? Money is just a means to get what you need and/or want. You can't just hoard it unless you intend on not surviving in this world.
Well from the Ferengi perspective, they're never the ones at war. They just sell to both sides of some other way. So it would always be good for their business.
cloudkitt until one side finds out about their scheme and annihilates them for such treacherous behavior, the Federal Reserve bank should never have been created, and the gold standard should never have been abolished, because now the dollar is losing its value, and it's prestige
On the precipice, looking at the beginning of the Great Depression 2: Electric Boogaloo in 2020... There are many things to learn from history about our path forward.
The Depression was created by Capitalism because it was Capitalism that caused the crash. The New Deal alleviated the worst aspects of capitalism and regulated it which allowed for stability. Unrepentant capitalism caused massive homelessness and insecurity. Unions, government regulation and economic growth with regulations like Glass Steagall kept banks from getting too big and acting too risky. Social Security allowed for a guaranteed socialized pension which lifted millions from absolute poverty in old age.
Javier Alicea Actually, it was a trade war (done by the government) and monetary deflation (also government) that caused the crash and depression. Not capitalism.
My ancestors were all farmers in Oklahoma and such owned quite a bit of land and were comparatively successful, and if the great depression hadn't hit. That is probibly where I would be living, but with the collapse my family lost all their land though supposedly I have relatives who still live there. It's strange to think of things like this have wide and long lasting effects. I live in Wyoming as opposed to the south largely because this issue my ancestors had to deal with.
4:29 - "It didn't help that he approved a tariff increasing prices from European importers. This attempt to boost American business only angered foreign nations and led to less overall business, so everybody was seeing less trade." Trump and China be like...
You couldn't call the new deal completely useless. FDR was voted in again twice by huge landslides in 1936 and 1940 due to his polices. The New Deal didn't fully succeed as it was most of the work done was temporary (As you said). What it did was bring hope to a disheartened US after 4 years of neglect under Hoover and brought in someone that was willing to get the US out of the depression by all means nessacary.
Well I mean that is how a democracy works. Whether for the right or the wrong, the will of the people must be heard, otherwise you will have a rebellion.
+Alex Turlais Ah yes, because voters never know what's in their best interest and what has worked. Everything's a better judge of success than voter support.
Hoover did do many things to try and get the U.S out of the depression. www.econlib.org/library/Enc/HooversEconomicPolicies.html FDR even campaigned saying he was doing too much. en.wikiquote.org/wiki/Franklin_D._Roosevelt I really don't know why people say this. Also, it was useless unless you care only for votes, which in result, has turned our nation into a mental pro welfare state. In Burt Fulsom's "New Deal or Raw Deal" he covers how FDR spending to win in the game of politics. You look at any major study covering the the creation of departments or programs and see if it has shown improvement in the last thirty years and you'll see that education, drugs, poverty, healthcare cost, etc has not improved in any way. object.cato.org/sites/cato.org/files/pubs/pdf/pa746.pdf www.heritage.org/marriage-and-family/commentary/the-war-poverty-50-years-failure www.countthecosts.org/sites/default/files/Economics-briefing.pdf mises.org/blog/how-government-regulations-made-healthcare-so-expensive
WW2 leaving the factories of Europe and Japan as smoldering craters didn't hurt American industry after the war either 🙂. This helped us gain a production advantage in manufacturing at the end of WWII.
That is too simple thinking. The British car industry was alive and well at the end of WW2. The German car industry, like the rest of Germany and its other industry, lay in ruins. Then there was the German Wirtschaftswunder (economic wonder), helped by the Marshall Plan and also other Allies' contributions because nobody wanted Germany to become weak again and fall prey to communism. The German car industry had one major advantage on their British rivals: no aging machinery (no machinery at all) so no expensive replacing and reforming of the industry. The enormous destruction of WW2 allowed the Germans to kick start their car industry (and other industries, like pharmaceutical) with a clean slate. A few decades later and German car production and brands were expanding and getting infinitely better. In Britain, the exact opposite occurred. Even today, anyone can name a few German top car brands: Mercedes, BMW, Volkswagen, Audi... And the British: Rolls Royce (only for the well-to-do), Jaguar (idem), Lotus (niche market). Oh yeah, they had a major success with the Mini Cooper. But it earned them next to nothing because they sold those Mini Coopers below the price it cost to manufacture...
Except we rebuilt Japanese factories after destroying them in ww2. Then with their new factories Japan built better machines than we could and became the best selling cars in America.
The Great Depression was caused by the Roaring '20's. Real, strong, sustainable economic growth does not roar. It's not fast. It's long term. The Roaring '20's were caused by a speculative bubble in the entire Stock Market.
The lesson here is to avoid speculative bubbles. If a stock price is soaring, it might look like an incredibly good deal, but this actually means it's about to plunge and take all the investors who just bought into it down with it. This is what happened in 1929 with the _entire_ stock market. This is what happened in 2002 with the _tech._ market. This is what happened in 2007 with the _housing_ market. If all you can tell about a stock price is that it is moving up unbelievably fast, _don't buy into it!_
It's easier to say than done. Most of the financiers don't recommend timing the top and the bottom of the market. Heck, most of the financiers don't see it coming (or they think they can sell the assets before the price drops). You can find people telling that market is going to crash every year. But after all, you can sill try to short it...
My father was born in Australia in 1932 and so I grew up with stories of his childhood in Bondi during the Great Depression. As I see what is now occurring around me (inequality, lack of liquidity, shares at all time highs, etc.) I now understand why he was always so aversive to personal debt, stressed the importance of a steady job and the importance of saving over borrowing.
You should do a video on the German depression post WWI and how it kinda started WWII. It is in my opinion one of the most important events of the 20th century.
That isn't enough to fix the economy. What's really needed is sustainable capital investment, to increase real wealth (goods and services), not merely more money moving faster.
Gov't printed money all the time during GD. It didn't help at all. Jobs are created by market, not gov't. When gov't were taxing 80% of key market participants, nobody could have any job because every business was unprofitable under that taxes.
I could've replied to all these comments, RUclips. Why didn't you notify me?! Ahem, *That isn't enough to fix the economy. What's really needed is sustainable capital investment, to increase real wealth (goods and services), not merely more money moving faster.* If no one buys those well-invested goods and services (because no one wants to lose money because Depression), how will that help solve the economic depression? Anyway, that's still spending money since you're taking money off of you to fund a business. *Gov't printed money all the time during GD. It didn't help at all. Jobs are created by market, not gov't. When gov't were taxing 80% of key market participants, nobody could have any job because every business was unprofitable under that taxes.* Well, obviously. Printing money is only viable under very special circumstances. Economic depression isn't one of them. Both the market and the government creates jobs. Your soldiers, police officers, firefighters, etc. are being paid by your taxes, you know? And yes, high taxes tend to drive away businesses. You want to know what drives businesses away more? No customers. Even if the tax rate was 10%, no customers mean no business. And that's assuming businesses want to create jobs during an economic depression. (Which they should, btw. Even if they don't think it's a good idea) *Go home, Zimbabwe, you're drunk! (Or, Weimar Germany/Venezuela/et. al.)* I'm not sure what you mean by that but if that means 'government spending money' is bad, then that was not my point. I'm telling the average joe to spend his money. Government injections can help but ultimately, the spending must come from average joe whose spent money can help pay employees who can then spend that money as average joes. I'm also telling businesses to spend money. Don't pocket them government injections and don't lay off employees to save money during an economic depression as that will only contribute to the depression.
He also didn't mention that one of the principle reasons for the depression was the crazy levels of inequality. Most of the capital in the country was owned by a fraction of the population so that when they had a bad day at the casino, ie. the Market Crash, they pulled their investments in almost everything. Most people had little to no money and were financing their lives on credit, so the consumer alone couldn't counteract the withdrawal of capital. And the house of cards collapsed. He also didn't tell us that the sharp contraction in 1937 was because Roosevelt had swung conservative that year. Worried about the growing debt, he tried to balance the budget by cutting back on the public works projects with the result that the recovery stalled. As to Hoover, he tried every "Free Market" solution he could. His secretary of the Treasury Andrew Mellon, pushed tax cuts, created voluntary bailout groups and urged the liquidation of any and all failing business. He also advised against any intervention in the economy as he believed depressions were a necessary and natural corrective to market inefficiencies. He, and Hoover blocked giving bonuses to WWI vets on these grounds. Of course he had been born into a wealthy family, never missed a meal in his life and was sitting on a $200,000,000 fortune, that's about $4 billion in today's money, so he could view the misery of the vast majority of his fellow citizens with a certain detachment....
I've heard that he was actually more involved with the economy. Freezing wages to prevent them from going down and the like. This requires more investigation.
Great video! I would like to add that though the New Deal did not end the Great Depression it was very important because it helped alleviate the worst of the suffering. Stuff like Social Security and Medicare came out of it and helped create a safety net for any future recessions.
yes the big short but if you don't want to watch it what happened was that banks were giving out mortgages to people who couldn't pay it back, and eventually it came back to bite them. Long story short, Bush gives a 3 trillion $ bailout to the banks.
The Big Short is a pretty good film about it, but if you want to know the actual details, I'd recommend a documentary called "Inside Job". It does a good job of explaining the specifics in an easy to follow manner, and without dumbing it down too much.
I heard that Inside Job wasn't so great of a documentary because it ends up trying to spin a narrative instead of looking of looking at the crisis as a whole.
King Of The Bees I would love to see a video covering the 2007/8 Global Financial Crisis. how lenders gave money to ppl who couldn't afford it. how policies with Clinton/Bush loosened the wall street market. etc... it will be nice to see who also profited the most from the GFC
@Chibiel Well, over 100 likes clearly disagree with you that no one wants to get it. As for memes being for morons, I appreciate the heads-up. I'm sure we all care so very deeply about your opinion.
The restriction on Germany after ww2 made sure they'll never rise into World Power Status ever again. Even though Germany is europe's leading economy, I doubt they'll ever be patriotic, let alone nationalistic anymore. Not sure if true but I heard people say they don't even allow Germany to be proud of their own country.
We better hope so then, or not. Depending on your perspective. We don't need another crazed leader like Hitler that's for sure but we do need a powerful, highly developed, sweet uniform and genius tactical and strategic Wehrmarcht army to bring down the Invaders. I'd never been to Germany but from the things I'd heard from my friends, most of them are very ashamed of their history and not the proud Germans we know from WW1 and WW2
Why should we find honour and pride in something of the past that we get shamed for everytime? Shit, even we are not the topic, someone is bashing us with our past (Erdogan for example). We are getting reminded day after day that we are the sore loser of the war... still today... by people living in the germany, taking advantage of the wealth... but we are still the Nazis to them.
What many people still don't understand is, including you by the way you made the video, though this did effect the American public greatly, these effects still were NOT immediate. Most researches I've seen for when stuff started to get real bad for us all was about March of 1930, but I'd say there's a sound argument for even the summer. Many industries were able to stay afloat also nearly perfectly well for up through 1932 such as Radio, Record, Film, and others.
"Don't forget the 34th Rule of Acquisition: _Peace is good for business"_ "That's the 35th." "Oh... right. What was the 34th?" *_"War_*_ is good for business."_
Hungary wanted to diverge from Soviet-Centered Warsaw Pact and wanted to go it's own Independent Socialism, like Yugoslavia had. Soviet Union didn't like that and struck the People's Hammer down upon them.
Firstly, I personally wouldn't mind listening to you for a very, very long time as you covered the global depressions. Secondly, you have just made me seriously worry that in my lifetime I will see a similar crash in the market and have to worry about both that and the threat that war will be the only way out.
I had honestly completely forgotten about this, and I'm kind of surprised to be sitting here in this position again because, for reasons completely disconnected to this video, I have come around to believing there will be another similar crash shortly (I'll admit I've been taken in a bit by conspiracy theories). I guess you're right about the war part, though to be fair I expected a war *after* the crash.
The biggest reason was because of the treaty of Vassille (definitely spelt it wrong) it caused Germany to be in economic ruin way before the Great Depression and saw Germany having factories forcefully taken over by french soldiers and french soldiers also killed many civilians.
Thank you for doing something that 90% of the people that talk about the depression don"t do and that's mention how the farm economy of the U.S. was in the shitter in both the 30's AND 20's. By the time WWII started American farmers and ranchers had lived through roughly 20 years of economic depression.
George Mosidze the Kingdom of Ireland merged with the Kingdom of Great Britain in 1801, making the flag we recognise today. St. Patrick's saltire represented Ireland at the time.
So I wake up in the morning, and I put on youtube, the very first thing in my recommended is a video titled THE GREAT DEPRESSION Well, congratulations, now I am happy youtube?
My great grandparents never got hit by the 1929 stock market slump, and it's weird cause now with 2020 slump I'm still not affected. It's weird because I never thought I was privileged guess I was wrong
I'm confused. If I pay X for say, Jimmy to go to war, that improves the economy. But if I pay X for Jimmy to improve infrastructure, build roads, to be a teacher at a public school, to be a social worker, or to be a cop, that does not simulate the economy? He's still getting the same amount of money. He still has the same purchasing power. What's so economically special about war spending that allows it to dramatically improve an economy more so then spending on any other government service regardless of cost difference? What value does war provide outside of fighting actual imminent threats(which none exist of right now)? Atleast, the social programs provided use items and skills like buildings, roads, education, job training, healthcare. A bomb is just a bomb that doesn't economically help anyone outside of the producer. Especially in the current wars. Please correct me here, because I'm honestly really baffled.
Your read is correct in my opinion. The war just allowed for incredibly low unemployment. The US went into staggering debt and the economic boom after the war has something to do with the fact that all of the competitive nations had been destroyed to some degree while we were unscathed and ready to exploit the opportunity. There's a reason why the US could sustain such high tax rates in the 50s without stifling the economy, and it ain't Keynes.
While the other replies are very credible, the exact reason as to why war improved the economy isn't quite addressed. Think about what a teacher needs; textbooks, supplies, etc. Those things are relatively cheap compared to military equipment. The army needed expensive equipment, and corporations were ready to supply it. In current day, soldiers wear about $17,500 worth of equipment each. Compare that to the roughly 3 million soldiers we have ( I am probably wrong on the size of our military) plus all the planes, tanks, and other vehicles, causes huge demand for war products. That's the "war machine" so commonly referenced in the media. Teachers might have the same spending power, but they don't contribute to the economic value anywhere near the amount a war does
Gavin I see whay you mean but in summary you're basically saying because it costs more. In that case the government just needs to spend more! If it's not teachers then build roads, trains, cars, hospitals, scientific research, etc etc. You can find things to build and always find ways to spend money, so there is more to it than that. What exactly I don't know either, I was wondering the same question as Dalym. I was to speculate an answer it's just that it goes to show how fragile our economy is. The weakness, the flaws, in the methods to handle mass trading and production. Organising millions of people into doing meaningful work, and distributing the resulting production fairly is an impossible task. That's why the distirbution of wealth has always been uneven. Even today we rely on an unfair and illogical society when it comes to workforce, production, and wealth distribution. You could argue that in a perfect world, money wouldn't exist. We would all go out and work hard for the good of humanity, and then distribute the results fairly to everyone. We all know that's never going to happen, because we're not perfect people and it isn't a perfect world. The way our economy does work - debts, stocks, shares, investment, etc; is all messed up. People spend money they haven't got, wealth is poorly distributed, people are selfish and competitive. It's only by some bizarre evolution of trading and production that it all hangs together. When something upsets the balance it goes horribly wrong. The fact that it was improved by something that should've been devastating goes to show just how much people can achieve when they work together towards a clear common cause; but without a clear and unified goal it's much more difficult to get everyone to work hard and decide who gets the most of the goods and services produced by that work. Might be wrong, but that's my initial speculation.
Despite the fact the work did help, and the impact of those projects, such as connecting rural Amarika up with electricity, there still exists some that want to discount his programs as much as possible. Hence why the work provided is only 'temporary' solution to a long term problem, even though they still rpvie work for those in need, which leads to them getting paid, which means they will spend money, and so on. The same argument can be made for millitary spending, which only lasted untill the war was over. For that matter, taxes during,and shortly following the 2nd World war climed upwards of 90% of income, which was also not detailed in the video. Even into the 1970's, taxes still went up tp 70%, even though with inflation the mean income was higher, and unepmlyment was lower. Its simply an attempt to minimalise the credit due to FDR for his efforts. Fact remains that if the Glass Steagall act had nod been repealed, we would not have had the banking crisis we did in the arl 21st century. What he did had a great did of good for the US, and for parts of the US, the impact is still being felt.
WorthlessVids uhhh, the glided ages had some of the lowest taxes in US history, that wasn’t why friend. We saw the most stable growing economy (golden age of economic expansion) between 1950-1970 with higher taxes. It’s a common misconception though
But the military is doing just fine, and it invades Manchuria. And the League of Nations is like ♪"No don't do that if you're in the League of Nations you're not supposed to try to take over the world."♪
I'm sorry KnowledgeHub but I'm going to have to disagree with the ending of the video here. The video was great all up until the end. The Great Depression was NOT concluded by WWII. It's actually a fallacy to make such an assumption. (See the Broken Window Fallacy) It's common for people to attribute the ending of the great depression to WWII, but this is almost factually incorrect. The reason why people tend to make such claims is a dramatic spike in employment and government spending around the early 1940s. However, while the number of workers declined by 7 million, the number of those employed by the military rose 8.5 million. In fact, investments continued to decrease and the economy under performed during WWII. There a bunch of influences that saved the economy, I won't go over them, but it was NOT the war. www.econlib.org/library/Enc/GreatDepression.html
My grandmother, born in 1927, oldest of four, married an Irish ex-Marine (yes they do exist), a living lesson on how you CAN learn from history. Love you Grandma. And she *will* survive the Chinese Bat Flu, damnit!
Wow! There's a lot wrong with this. They left out how the Federal Reserve inflated the money supply in the twenties. Obviously government interference by Hoover and FDR made the depression longer than any other. War doesn't help an economy (Frédéric Bastiat's broken window falicy). The best economy comes from real saving and investing in production, not consumerism. Lawrence Reed or Tom Woods are much better on the Great Depression.
Production, yes, but even that has its limits, as the unfortunate victims of the Irish, Spanish, American and Icelandic real estate bubbles can attest. Keep manufacturing stuff but only as long as you believe there will be demand for it when you want to sell it and also, it'd be nice if you sold it to somebody who would actually use it instead of just pass it on to another person after a period of time. That does _not_ create growth at all.
Good point that it would be a bad time to produce more at the top of a bubble, but most of the reason for the bubble was central bank inflation of the money supply which sends false signals to the market place.
But what about the situation where there's too much production, but no market to buy the products? We're seeing this now. We need more salesmen than producents at the moment.
at the time, us$ was on the gold standard, and the trade was bringing large amounts of gold. The gold standard works by saying (for example) $2=1oz Gold. If your gold supply doubles, you can either make $4=1oz or Print more money so $2=1oz
Nothing better than talking about an economic crisis with upbeat music
KnowledgeHub ja
KnowledgeHub first
KnowledgeHub notification squaddd
KnowledgeHub AlternateKnowlegeHub and RealHistoryHub
KnowledgeHub hallo cody how are
Doesn't help King Kong attacked in the 30's
was a boost for the fur industry though.
john pardon unfortunately not for bananas
busi magen I mean because the agricultural industry was bad in the 30s
Son Goku?
*Sigh* If King Kong weren't killed so fast, the U.S. would have declared the earliest war on terror and boosted the military industry.
The great depression began at the end of the 1920s, its sequal, the big sad, begins at the beginning of the 2020s
100 hundred years later
and 1920 depression ended by a great devastating war so that means if we continue with the crashing of the stack market today only a new war could save us
or " Greater depression "
@@MajinMist603 Great Depression 2: Electric Boogaloo
@@somedude5422 featuring dante from the devil may cry series
One of the biggest contributing factors you didn't mention was the fact that it was legal and practiced for general banks to invest in stocks...so when the stock market collapsed, it wiped out most people's savings overnight.
HaydenX Glass-Steagall took care of that for a while. Then Bill Clinton’s waffling, centrist ass repealed it. Three cheers for neoliberalism!
@@basedcousinbalki8664 but the guy forgot to make it so that the banks would be held accountable if they fuck something up. So basically, invest in stocks but if you cause a crash, The government will bail you out
You didn't mention the issue where banks would basically give huge loans to nearly anyone (which obviously were never paid back). This caused them to be in such bad fiscal states that they would forclose on people that were actually making their payments on time, as the banks basically demanded that everyone pay them back in full.
MegaZeroX7 And this also happened in 2008, we just never learn do we?
MegaZeroX7 meanwhile, rich bankers stole everyone’s savings to stop the first crash of 1929- by using the stolen savings to buy stocks, to keep their prices from plummeting.
Greed, greed never changes...
Those who dont learn history are doomed to repeat it. People care for the now, potential what if's without looking at previous "oh shot" moments in time
They also took that money and put it in the stock market so when it crashed the bank lost the money, which was the money people put into it for storage. The laws ment to stop that are sadly in the process of being undone or are already gone.):
2019: I wonder why RUclips is reccommendi--
2020: Oh no.... *OH NO*
history repeats itself
Hahahah best timeline 🙃
@@kris6038 You like losing money, don't you?
@@cathacker13 oh I definitely like losing money and totally wasn't being sarcastic
@@kris6038 Wow I never though of it that way!
March 2020, godspeed gentlemen
Gentlemen, sync up your death watches
To your bunkers, everyone. This won't end well.
Godspeed
What a ride it’s been so far.
@Kill Team Charlie not over yet
This is why I love History. Its a blueprint of the mistakes of men so we don't commit those same mistake.
unfortunately there are forces at work actively trying to blind people to history. think IngSoc in orwell's 1984
I really need to re-read 1984. It's looking less and less as a science fiction book and more and more as a historical text.
Eh, life is suffering. Take the punishment from the Gods and be glad when they relieve you of it by death.
Sadly people in my country see history as a pointless topic and shouldn't even be taught in schools. Now look at the Philippines, my beloved nation. It keeps repeating it's same mistakes because people don't want to learn from their past mistakes.
+Royal Satan
"We can't progress to infinity"
Challenge accepted.
Who says violence isn't the answer
Hahahah
Hippies
Easy to say when your country isn't being bombed to the ground and your kids aren't on fire because the enemy keeps dumping napalm on you to convince your leaders to give up. Why do you think so many vets are traumatized by war, it's fucking horrible.
@@dylanhaugen3739 dude America is going to pay back like all European nations who invaded and killed innocent they are going to crash and burn hell WHY do you think America and other countries imperialism are full of retarded snowflakes citizen and gay guys and etc etc etc
This nations is worser than Germany Nazi it was better any way don't flow them and let them being snowflakes and retarded now they come to our land they dead to the last snowflakes
At least it prevents people from living and thus from suffering.
To think. My living Grandfather lived through all this
Zeroz it's crazy isn't it my grandmother went on and on about all of what happened I loved her stories
Zeroz my grandmother lived through all this though she isn't american
Zeroz same thing for my grandpa.
My grand father grow up in the 60s
Zeroz my granddad lived through apartheid
What was crazy about the dust bowl is that in a lot of those areas in my home state of Oklahoma we had only recently fully recovered from the depression. The great depression changed our politics by making us SUPER DEPENDENT on federal money and made us a very prison and military base dense state.
_A pandemic flu and economic collapse_
*Wait I've seen this episode before!*
I’ve seen this one before! It’s a classic!
@@radium6962 what do you mean you've seen this it's brand new
Elias 676 It’s a joke
Because of
COVID-19s
Relations to a pandemic and causing economic decrease in the 1920s.
@@radium6962 He's referencing Back to the Future, just like I was. You missed it.
Christian Kerr ah crap, haven’t watched in a good long while. Apologies
Video idea for alternate history hub. "What if The Great Depression Didn't Happen?"
The American Invader Ironic profile pic since its the sickle and the hammer(USSR) with a name called "The American Invader"
Kinda on that theme: "What if FDR was assassinated before taking office?"
I dont think you know what ironic means
there probably wouldn't be a ww2. because of the great depression, the dawes plan american loans had to be called in short from germany and it crippled it's economy that just recovered under stresemann. because of these events the nazi party gained a lot of seats in the reichstag.
The answer to that question would be : if great depression did not happen 2+2 would be equal to 5.
Great depression was mathematically and logically inevitable consequence of free market and capitalism.
Thanks! As a scandinavian i've only heard of The Great Depression. Thank you for teaching me. I really love history.
1930: not stonks
2019: stonks
2020: not stonks (again)
Meanwhile economists were pretty sure there was going to be a huge recession back as early as 2018, but it happening in 2020 just made things worse.
2008 not stonks
You forgot the dot-com bubble (end 90s) and subprime mortgage crisis (2008).
did you people forget how to type stocks?
@@pyro7358 I’m guessing you don’t know the meme behind it
“Hey! I’ve seen this one!”
“What are you talking about? This is brand new.”
4 am learning about the great depression.. why not
acemedia i shoul sleep😂
learning about the great depression while having a great depression... GREAT!
6:30am 🤓
@@ozzyfromspace is that early or late?
@@Lyle-xc9pg lol late, I have horrible sleep patterns that I need to improve
Temporary money is better than no money.
Revival Michael short-sighted is better than for foresight...
A lot of people are in love with bitcoin because it’s not government issued because, hey, the gubbmint can’t do anything right! Yet there is a reason cash has outlasted all other contenders.
Daniel Ryan Paper money and coinage isnt government issued either. People buy bitcoin cause it's an efficient way to make money and investment.
YoloBagels paper and coins have the backing of the US government. I don’t consider myself a “radical communist socialist” by any means, but I honestly would take the backing of the US government over many a private entity. And I also believe that the government issuing currency actually makes commerce far simpler with a centralized currency instead of having to change currency every time you cross a state line.
lukepyung 1 Isn't all money temporary? Money is just a means to get what you need and/or want. You can't just hoard it unless you intend on not surviving in this world.
"Rule of Acquisition #34: War is good for business."
Admiral Attila I see you watched Star Trek Deep Space 9... fucking Ferengi idiot
Hey it works. The rule has been proven countless time throughout history. An exterior threat is what keeps societies healthy.
not if you keep finding enemies to shit on!
Well from the Ferengi perspective, they're never the ones at war. They just sell to both sides of some other way. So it would always be good for their business.
cloudkitt until one side finds out about their scheme and annihilates them for such treacherous behavior, the Federal Reserve bank should never have been created, and the gold standard should never have been abolished, because now the dollar is losing its value, and it's prestige
Now do one video on the Great Recession of 2008!
Lowdon Blake the big short on netflix
I've already watched that, though I'd love to see KnowledgeHub do one video about it!
Lowdon Blake seems a bit soon
The thing is it the Recession of 2008 isn't really history yet. It isn't entirely resolved and we haven't seen the long term effects of it yet.
"Inside Job" on Netflix does a good job of explaining the economic crisis of 2008.
On the precipice, looking at the beginning of the Great Depression 2: Electric Boogaloo in 2020... There are many things to learn from history about our path forward.
Yeah but we never learn.
Or should I say, we are encouraged to forget.
Roaring 20s! Ten whole years of Heaven then hell unleashed.
Kruegerisgod
The ten years of heaven were the result of capitalism. The Hell afterwards was caused and perpetuated by the government.
The Depression was created by Capitalism because it was Capitalism that caused the crash. The New Deal alleviated the worst aspects of capitalism and regulated it which allowed for stability. Unrepentant capitalism caused massive homelessness and insecurity. Unions, government regulation and economic growth with regulations like Glass Steagall kept banks from getting too big and acting too risky. Social Security allowed for a guaranteed socialized pension which lifted millions from absolute poverty in old age.
Javier Alicea
Actually, it was a trade war (done by the government) and monetary deflation (also government) that caused the crash and depression. Not capitalism.
@@jalicea1650
The new deal failed
War fixed the country
Goyon Man It helped quite a bit, it’s mostly debated as to how much
My ancestors were all farmers in Oklahoma and such owned quite a bit of land and were comparatively successful, and if the great depression hadn't hit. That is probibly where I would be living, but with the collapse my family lost all their land though supposedly I have relatives who still live there. It's strange to think of things like this have wide and long lasting effects. I live in Wyoming as opposed to the south largely because this issue my ancestors had to deal with.
4:29 - "It didn't help that he approved a tariff increasing prices from European importers. This attempt to boost American business only angered foreign nations and led to less overall business, so everybody was seeing less trade."
Trump and China be like...
You couldn't call the new deal completely useless. FDR was voted in again twice by huge landslides in 1936 and 1940 due to his polices. The New Deal didn't fully succeed as it was most of the work done was temporary (As you said). What it did was bring hope to a disheartened US after 4 years of neglect under Hoover and brought in someone that was willing to get the US out of the depression by all means nessacary.
DuckSwagington ah yes, because voters always know what's in their best interests and what has worked. no better judge of success than voter support.
Well I mean that is how a democracy works. Whether for the right or the wrong, the will of the people must be heard, otherwise you will have a rebellion.
DuckSwagington He won in 1936 more out of nobody liking Hoover than it being Roosevelt specifically.
+Alex Turlais
Ah yes, because voters never know what's in their best interest and what has worked. Everything's a better judge of success than voter support.
Hoover did do many things to try and get the U.S out of the depression.
www.econlib.org/library/Enc/HooversEconomicPolicies.html
FDR even campaigned saying he was doing too much.
en.wikiquote.org/wiki/Franklin_D._Roosevelt
I really don't know why people say this. Also, it was useless unless you care only for votes, which in result, has turned our nation into a mental pro welfare state. In Burt Fulsom's "New Deal or Raw Deal" he covers how FDR spending to win in the game of politics. You look at any major study covering the the creation of departments or programs and see if it has shown improvement in the last thirty years and you'll see that education, drugs, poverty, healthcare cost, etc has not improved in any way.
object.cato.org/sites/cato.org/files/pubs/pdf/pa746.pdf
www.heritage.org/marriage-and-family/commentary/the-war-poverty-50-years-failure
www.countthecosts.org/sites/default/files/Economics-briefing.pdf
mises.org/blog/how-government-regulations-made-healthcare-so-expensive
Why did I just discover this channel? It's so helpful and fun to watch
WW2 leaving the factories of Europe and Japan as smoldering craters didn't hurt American industry after the war either 🙂. This helped us gain a production advantage in manufacturing at the end of WWII.
That is too simple thinking. The British car industry was alive and well at the end of WW2. The German car industry, like the rest of Germany and its other industry, lay in ruins. Then there was the German Wirtschaftswunder (economic wonder), helped by the Marshall Plan and also other Allies' contributions because nobody wanted Germany to become weak again and fall prey to communism. The German car industry had one major advantage on their British rivals: no aging machinery (no machinery at all) so no expensive replacing and reforming of the industry. The enormous destruction of WW2 allowed the Germans to kick start their car industry (and other industries, like pharmaceutical) with a clean slate.
A few decades later and German car production and brands were expanding and getting infinitely better. In Britain, the exact opposite occurred. Even today, anyone can name a few German top car brands: Mercedes, BMW, Volkswagen, Audi...
And the British: Rolls Royce (only for the well-to-do), Jaguar (idem), Lotus (niche market). Oh yeah, they had a major success with the Mini Cooper. But it earned them next to nothing because they sold those Mini Coopers below the price it cost to manufacture...
Except we rebuilt Japanese factories after destroying them in ww2. Then with their new factories Japan built better machines than we could and became the best selling cars in America.
The Great Depression was caused by the Roaring '20's. Real, strong, sustainable economic growth does not roar. It's not fast. It's long term. The Roaring '20's were caused by a speculative bubble in the entire Stock Market.
The lesson here is to avoid speculative bubbles. If a stock price is soaring, it might look like an incredibly good deal, but this actually means it's about to plunge and take all the investors who just bought into it down with it. This is what happened in 1929 with the _entire_ stock market. This is what happened in 2002 with the _tech._ market. This is what happened in 2007 with the _housing_ market. If all you can tell about a stock price is that it is moving up unbelievably fast, _don't buy into it!_
lazyperfectionist1 What about the fact the fact that markets crashed even harder in 87(I'm fairly sure) yet didn't cause a recession
'88 was the year that Bush senior was elected president, and during his presidency, the nation's economy struggled.
Actually, Americans struggled even worse in the mid to late 70's when inflation took off.
It's easier to say than done. Most of the financiers don't recommend timing the top and the bottom of the market. Heck, most of the financiers don't see it coming (or they think they can sell the assets before the price drops). You can find people telling that market is going to crash every year. But after all, you can sill try to short it...
1920's: positive attitude for everyone but the writers
My father was born in Australia in 1932 and so I grew up with stories of his childhood in Bondi during the Great Depression. As I see what is now occurring around me (inequality, lack of liquidity, shares at all time highs, etc.) I now understand why he was always so aversive to personal debt, stressed the importance of a steady job and the importance of saving over borrowing.
You should do a video on the German depression post WWI and how it kinda started WWII. It is in my opinion one of the most important events of the 20th century.
1929: "Great Depression"
90 years later: "Crate Depression"
91 and a half years later: The corona recession
So basically: Spend your damn money, dammit!
PitLord777 t. Ferengi
That isn't enough to fix the economy. What's really needed is sustainable capital investment, to increase real wealth (goods and services), not merely more money moving faster.
Gov't printed money all the time during GD. It didn't help at all.
Jobs are created by market, not gov't. When gov't were taxing 80% of key market participants, nobody could have any job because every business was unprofitable under that taxes.
_"So basically: Spend your damn money, dammit!"_
Go home, Zimbabwe, you're drunk! (Or, Weimar Germany/Venezuela/et. al.)
I could've replied to all these comments, RUclips. Why didn't you notify me?!
Ahem,
*That isn't enough to fix the economy. What's really needed is sustainable capital investment, to increase real wealth (goods and services), not merely more money moving faster.*
If no one buys those well-invested goods and services (because no one wants to lose money because Depression), how will that help solve the economic depression?
Anyway, that's still spending money since you're taking money off of you to fund a business.
*Gov't printed money all the time during GD. It didn't help at all.
Jobs are created by market, not gov't. When gov't were taxing 80% of key market participants, nobody could have any job because every business was unprofitable under that taxes.*
Well, obviously. Printing money is only viable under very special circumstances. Economic depression isn't one of them.
Both the market and the government creates jobs. Your soldiers, police officers, firefighters, etc. are being paid by your taxes, you know? And yes, high taxes tend to drive away businesses. You want to know what drives businesses away more? No customers. Even if the tax rate was 10%, no customers mean no business.
And that's assuming businesses want to create jobs during an economic depression. (Which they should, btw. Even if they don't think it's a good idea)
*Go home, Zimbabwe, you're drunk! (Or, Weimar Germany/Venezuela/et. al.)*
I'm not sure what you mean by that but if that means 'government spending money' is bad, then that was not my point.
I'm telling the average joe to spend his money. Government injections can help but ultimately, the spending must come from average joe whose spent money can help pay employees who can then spend that money as average joes.
I'm also telling businesses to spend money. Don't pocket them government injections and don't lay off employees to save money during an economic depression as that will only contribute to the depression.
"Optimism turned into depression turned into optimism" the story of my life.
I have crippling depression
*I have 2008 Recession*
The Great Crippling Depression
You need a New Medication.
Kim Jong The Choo Choo Train of Bel-Air I have crippling retardation
that's rough buddy
America learned its lesson: all war, all the time to keep the economy strong!
🤣
come everyone! buy our guns, ammos, food, and other war supplies!
He also didn't mention that one of the principle reasons for the depression was the crazy levels of inequality. Most of the capital in the country was owned by a fraction of the population so that when they had a bad day at the casino, ie. the Market Crash, they pulled their investments in almost everything. Most people had little to no money and were financing their lives on credit, so the consumer alone couldn't counteract the withdrawal of capital. And the house of cards collapsed.
He also didn't tell us that the sharp contraction in 1937 was because Roosevelt had swung conservative that year. Worried about the growing debt, he tried to balance the budget by cutting back on the public works projects with the result that the recovery stalled.
As to Hoover, he tried every "Free Market" solution he could. His secretary of the Treasury Andrew Mellon, pushed tax cuts, created voluntary bailout groups and urged the liquidation of any and all failing business. He also advised against any intervention in the economy as he believed depressions were a necessary and natural corrective to market inefficiencies. He, and Hoover blocked giving bonuses to WWI vets on these grounds. Of course he had been born into a wealthy family, never missed a meal in his life and was sitting on a $200,000,000 fortune, that's about $4 billion in today's money, so he could view the misery of the vast majority of his fellow citizens with a certain detachment....
You are 100% right
I've heard that he was actually more involved with the economy. Freezing wages to prevent them from going down and the like. This requires more investigation.
@@jacob5395 bufoferetta got a lot of things wrong evern personal history of herbert hoover himself
Who’s here in 2020 studying up for our future
I studied mostly American history at uni. Your videos are informed and well done. Keep it up guys.
Great video! I would like to add that though the New Deal did not end the Great Depression it was very important because it helped alleviate the worst of the suffering. Stuff like Social Security and Medicare came out of it and helped create a safety net for any future recessions.
2020: Ah shit, here we go again
excellent I have studied the Great Depression in-depth and this is one of the best videos I've seen on it thank you so much
But he left out most of the narrative involving the gold standard and its importance in bringing us out of the Great Depression.
Depressions are temporary, death is permanent.
Enjoy Arby's.
That sounds like someone trying to stop a suicidal person from... you know, doing it.
I'd love to see a 2008 recession video
watch the big short on netflix
yes the big short but if you don't want to watch it what happened was that banks were giving out mortgages to people who couldn't pay it back, and eventually it came back to bite them. Long story short, Bush gives a 3 trillion $ bailout to the banks.
The Big Short is a pretty good film about it, but if you want to know the actual details, I'd recommend a documentary called "Inside Job". It does a good job of explaining the specifics in an easy to follow manner, and without dumbing it down too much.
I heard that Inside Job wasn't so great of a documentary because it ends up trying to spin a narrative instead of looking of looking at the crisis as a whole.
King Of The Bees I would love to see a video covering the 2007/8 Global Financial Crisis.
how lenders gave money to ppl who couldn't afford it. how policies with Clinton/Bush loosened the wall street market.
etc... it will be nice to see who also profited the most from the GFC
I needed that for a school project, thanks for saving my life
RUclips’s algorithms are hilarious, anyone got this recommended to them during the 2020 stock market decline? Or just me?
Brody Harris Yep! They keep beating the depression into my brain! At least I will be ready for this potential next one. 😂
Tyler Ha Lmao facts
NothingExotic Says the guy who doesn’t even have a pic of his own fuckin face on his profile.
Oh yeah, RUclips is just attacking us tbh
@@RealTonyStock they beat the depression so hard into my brain I actually became depressed
It's called the crippling depression
Mathew Ritchie
Maybe on your home planet it is...here of Earth it's "the Great Depression."
@@bcubed72 Seems like you aren't aware of the "crippling depression" meme. Look it up on RUclips, and you'll get the joke.
@Chibiel Well, over 100 likes clearly disagree with you that no one wants to get it. As for memes being for morons, I appreciate the heads-up. I'm sure we all care so very deeply about your opinion.
@@bcubed72 r/whoooosh
@@hauntologicalwittgensteini2542
Sorry, bro. I don't speak meme.
I really like this channel.
keep up the good work
You: The Great Depression
Me, an intellectual: The Big Sad
You: The Roaring Twenties
Me, an intellectual: _La Belle Époque_
You should go back to the old animation style. Many loved its cartoonish features
Folner Willies I agree so much
This isn't necessarily a bad style, but I like the old one a bit better.
I like the new kind, but I still like the old one. I think a combo of both would be perfect
John Smith Exactly.
yes
Thanks for making a video about my current mental health.
ao WW2 fixed the depression
the world is in a ression now in 2017...anyone want to call Germany and ask them if they are up for another WW2?
The restriction on Germany after ww2 made sure they'll never rise into World Power Status ever again. Even though Germany is europe's leading economy, I doubt they'll ever be patriotic, let alone nationalistic anymore.
Not sure if true but I heard people say they don't even allow Germany to be proud of their own country.
Lich King They are allowed to be proud they just don't do it very often, except at football games
Lich King you say that, but the beast might reawaken. The migrant situation in Europe is a disaster
We better hope so then, or not. Depending on your perspective. We don't need another crazed leader like Hitler that's for sure but we do need a powerful, highly developed, sweet uniform and genius tactical and strategic Wehrmarcht army to bring down the Invaders.
I'd never been to Germany but from the things I'd heard from my friends, most of them are very ashamed of their history and not the proud Germans we know from WW1 and WW2
Why should we find honour and pride in something of the past that we get shamed for everytime? Shit, even we are not the topic, someone is bashing us with our past (Erdogan for example). We are getting reminded day after day that we are the sore loser of the war... still today... by people living in the germany, taking advantage of the wealth... but we are still the Nazis to them.
Perfect timing I got a test in US history coming up on the Great Depression
Hope you did well my man
I'm glad that you managed to explain it in 10 minutes and 20 seconds only.
4:32 Of all people, how could YOU get the wrong Union Jack!?
It was before Northern Ireland joined the united kingdom
Ireland/Northern Ireland was part of the UK long before the 1920s. The current flag has been used since 1801.
TrailBlazer65 yeah, but it's still not wrong, just out of date.
TrailBlazer65 it could’ve had no Northern Ireland
Ben Oakden No, he is correct in calling it the Union Jack,
What I never understand about those crisis is where does all the money go?
Gone.
Hakkapeliitta reads like a Murray Rothbard book. A+ explanation
Huh.
That was very informative.
thank you
Hakkapeliitta
That was so comlicated, but said so well. Probably the best informative comment I've ever seen on RUclips ever. Wow, lol
Philippe Bouchard everyone hold on to their money and because of this money is rare. Rare things are more valueble so hold on to what is valueble
What many people still don't understand is, including you by the way you made the video, though this did effect the American public greatly, these effects still were NOT immediate. Most researches I've seen for when stuff started to get real bad for us all was about March of 1930, but I'd say there's a sound argument for even the summer. Many industries were able to stay afloat also nearly perfectly well for up through 1932 such as Radio, Record, Film, and others.
"Don't forget the 34th Rule of Acquisition: _Peace is good for business"_
"That's the 35th."
"Oh... right. What was the 34th?"
*_"War_*_ is good for business."_
20s : *stonks*
30s : * no stonks*
Amazing video bro. After seeing your 1st video, I subscribe your channel. Love from India 🇮🇳🇮🇳
Can you do a video on the Hungarian Revolution?
It was hungary defending itself when russia invaded, something about leaving the Soviet Union, I may not be right but something along those lines
It was from the mid forties to early fifties I believe
1956
Hungary wanted to diverge from Soviet-Centered Warsaw Pact and wanted to go it's own Independent Socialism, like Yugoslavia had. Soviet Union didn't like that and struck the People's Hammer down upon them.
James A Clouder pretty much
this is about to go down again
Firstly, I personally wouldn't mind listening to you for a very, very long time as you covered the global depressions.
Secondly, you have just made me seriously worry that in my lifetime I will see a similar crash in the market and have to worry about both that and the threat that war will be the only way out.
*2 years later...*
Well, the war part hasn't come true yet according to my myopic view of the world, so there's that.
I had honestly completely forgotten about this, and I'm kind of surprised to be sitting here in this position again because, for reasons completely disconnected to this video, I have come around to believing there will be another similar crash shortly (I'll admit I've been taken in a bit by conspiracy theories).
I guess you're right about the war part, though to be fair I expected a war *after* the crash.
The Great Depression was the biggest reason Hitler came to power
Change my mind
Yung Stallion no ww1 and the treaty of Versailles
Why would you say something so controversial yet so brave?
As well as Lenin.
no it was because he got put on trial and took the opportunity to give a speech to the whole of germany on live TV
The biggest reason was because of the treaty of Vassille (definitely spelt it wrong) it caused Germany to be in economic ruin way before the Great Depression and saw Germany having factories forcefully taken over by french soldiers and french soldiers also killed many civilians.
the comment section is a class room
Full of toxicity
Thank you for doing something that 90% of the people that talk about the depression don"t do and that's mention how the farm economy of the U.S. was in the shitter in both the 30's AND 20's. By the time WWII started American farmers and ranchers had lived through roughly 20 years of economic depression.
And here we go again to depression.
did anyone else notice at 4:37 he did the British flag wrong
Jh171 2002 yeah, it's about 200 years out of date.
That's the way the Union Jack should look like. 🇮🇪🇮🇪
Jh171 2002 thats the pre modern british flag, when northern ireland was not part of the uk.
George Mosidze the Kingdom of Ireland merged with the Kingdom of Great Britain in 1801, making the flag we recognise today. St. Patrick's saltire represented Ireland at the time.
Saw that exactly as I read this what a thing
So I wake up in the morning, and I put on youtube, the very first thing in my recommended is a video titled THE GREAT DEPRESSION
Well, congratulations, now I am happy youtube?
Revisiting videos on this subject. Given the current state of affairs, I have my concerns.
The great depression of the '30s is nothing compared to my life.
My great grandparents never got hit by the 1929 stock market slump, and it's weird cause now with 2020 slump I'm still not affected. It's weird because I never thought I was privileged guess I was wrong
The thing is…history has a tendency to repeat itself..
"History...merely ryhmes."
- John Earnst
I'm confused.
If I pay X for say, Jimmy to go to war, that improves the economy.
But if I pay X for Jimmy to improve infrastructure, build roads, to be a teacher at a public school, to be a social worker, or to be a cop, that does not simulate the economy?
He's still getting the same amount of money. He still has the same purchasing power. What's so economically special about war spending that allows it to dramatically improve an economy more so then spending on any other government service regardless of cost difference?
What value does war provide outside of fighting actual imminent threats(which none exist of right now)?
Atleast, the social programs provided use items and skills like buildings, roads, education, job training, healthcare.
A bomb is just a bomb that doesn't economically help anyone outside of the producer. Especially in the current wars.
Please correct me here, because I'm honestly really baffled.
Your read is correct in my opinion. The war just allowed for incredibly low unemployment. The US went into staggering debt and the economic boom after the war has something to do with the fact that all of the competitive nations had been destroyed to some degree while we were unscathed and ready to exploit the opportunity.
There's a reason why the US could sustain such high tax rates in the 50s without stifling the economy, and it ain't Keynes.
While the other replies are very credible, the exact reason as to why war improved the economy isn't quite addressed. Think about what a teacher needs; textbooks, supplies, etc. Those things are relatively cheap compared to military equipment. The army needed expensive equipment, and corporations were ready to supply it. In current day, soldiers wear about $17,500 worth of equipment each. Compare that to the roughly 3 million soldiers we have ( I am probably wrong on the size of our military) plus all the planes, tanks, and other vehicles, causes huge demand for war products. That's the "war machine" so commonly referenced in the media. Teachers might have the same spending power, but they don't contribute to the economic value anywhere near the amount a war does
Gavin I see whay you mean but in summary you're basically saying because it costs more. In that case the government just needs to spend more! If it's not teachers then build roads, trains, cars, hospitals, scientific research, etc etc. You can find things to build and always find ways to spend money, so there is more to it than that.
What exactly I don't know either, I was wondering the same question as Dalym.
I was to speculate an answer it's just that it goes to show how fragile our economy is. The weakness, the flaws, in the methods to handle mass trading and production. Organising millions of people into doing meaningful work, and distributing the resulting production fairly is an impossible task. That's why the distirbution of wealth has always been uneven. Even today we rely on an unfair and illogical society when it comes to workforce, production, and wealth distribution.
You could argue that in a perfect world, money wouldn't exist. We would all go out and work hard for the good of humanity, and then distribute the results fairly to everyone. We all know that's never going to happen, because we're not perfect people and it isn't a perfect world.
The way our economy does work - debts, stocks, shares, investment, etc; is all messed up. People spend money they haven't got, wealth is poorly distributed, people are selfish and competitive. It's only by some bizarre evolution of trading and production that it all hangs together. When something upsets the balance it goes horribly wrong.
The fact that it was improved by something that should've been devastating goes to show just how much people can achieve when they work together towards a clear common cause; but without a clear and unified goal it's much more difficult to get everyone to work hard and decide who gets the most of the goods and services produced by that work.
Might be wrong, but that's my initial speculation.
Despite the fact the work did help, and the impact of those projects, such as connecting rural Amarika up with electricity, there still exists some that want to discount his programs as much as possible. Hence why the work provided is only 'temporary' solution to a long term problem, even though they still rpvie work for those in need, which leads to them getting paid, which means they will spend money, and so on.
The same argument can be made for millitary spending, which only lasted untill the war was over. For that matter, taxes during,and shortly following the 2nd World war climed upwards of 90% of income, which was also not detailed in the video. Even into the 1970's, taxes still went up tp 70%, even though with inflation the mean income was higher, and unepmlyment was lower.
Its simply an attempt to minimalise the credit due to FDR for his efforts. Fact remains that if the Glass Steagall act had nod been repealed, we would not have had the banking crisis we did in the arl 21st century. What he did had a great did of good for the US, and for parts of the US, the impact is still being felt.
WorthlessVids uhhh, the glided ages had some of the lowest taxes in US history, that wasn’t why friend. We saw the most stable growing economy (golden age of economic expansion) between 1950-1970 with higher taxes.
It’s a common misconception though
Great video KnowledgeHusk and I hope the great depression does not happen again :]
Oh no another warning from the youtube algorithm
Great content, always happy to see new videos released. +Rep
I remember my fiancee's grandma who was alive during the depression and you asked her favorite presidents in her lifetime was FDR and JFK
Same with me, honestly. And I was born in 1968.
The great depression happened and Japan's economy is now crappy
American National Anthem Ear Rape dropping in.
But the military is doing just fine, and it invades Manchuria. And the League of Nations is like ♪"No don't do that if you're in the League of Nations you're not supposed to try to take over the world."♪
Hexagonal Studios And they all died in a tornado.
And Japan said "how bout i do anyway"♪
I just did a history lesson in school about prohibition, the Great Depression, the Cuban stuff... and now this is being recommended to me.
I'm sorry KnowledgeHub but I'm going to have to disagree with the ending of the video here. The video was great all up until the end. The Great Depression was NOT concluded by WWII. It's actually a fallacy to make such an assumption. (See the Broken Window Fallacy) It's common for people to attribute the ending of the great depression to WWII, but this is almost factually incorrect. The reason why people tend to make such claims is a dramatic spike in employment and government spending around the early 1940s. However, while the number of workers declined by 7 million, the number of those employed by the military rose 8.5 million. In fact, investments continued to decrease and the economy under performed during WWII.
There a bunch of influences that saved the economy, I won't go over them, but it was NOT the war.
www.econlib.org/library/Enc/GreatDepression.html
hoover being a libertarian that didn't wanted to mess with the economy is one of the great myths of the great depression
Wow, your videos have gotten so much better. And your voice a lot goofier.
TF2's economy at the moment
My great grandma was alive during that time
(Shes still alive btw)
She may not be in 2020
My grandmother, born in 1927, oldest of four, married an Irish ex-Marine (yes they do exist), a living lesson on how you CAN learn from history. Love you Grandma. And she *will* survive the Chinese Bat Flu, damnit!
Thank you! FDR is remembered for so many good things, but he prolonged the depression. Government doesn’t solve anything.
Wow! There's a lot wrong with this. They left out how the Federal Reserve inflated the money supply in the twenties. Obviously government interference by Hoover and FDR made the depression longer than any other. War doesn't help an economy (Frédéric Bastiat's broken window falicy). The best economy comes from real saving and investing in production, not consumerism. Lawrence Reed or Tom Woods are much better on the Great Depression.
Yep, you can't beat Reed and Foundation for Economic Freedom, or Dr. Woods and Mises.
Production, yes, but even that has its limits, as the unfortunate victims of the Irish, Spanish, American and Icelandic real estate bubbles can attest. Keep manufacturing stuff but only as long as you believe there will be demand for it when you want to sell it and also, it'd be nice if you sold it to somebody who would actually use it instead of just pass it on to another person after a period of time. That does _not_ create growth at all.
Good point that it would be a bad time to produce more at the top of a bubble, but most of the reason for the bubble was central bank inflation of the money supply which sends false signals to the market place.
But what about the situation where there's too much production, but no market to buy the products? We're seeing this now. We need more salesmen than producents at the moment.
at the time, us$ was on the gold standard, and the trade was bringing large amounts of gold. The gold standard works by saying (for example) $2=1oz Gold. If your gold supply doubles, you can either make $4=1oz or Print more money so $2=1oz
This came just in time for my test
Man... what path did this channel go on?
i actually caught onto a reference :D 8:08 yes, i have read of mice and men
Entrako he was referring to The Grapes of Wrath
*Ahem* I believe it's called "T H E B I G S A D."
Explained very well!!!
Now we have crippling depression
“Gatsby and this overall positive view of the future”
something doesn’t line up
Thanks! I didnt really understand what happened and you helped me thanks!
The earth in 2020 looking at Wall Street
*chuckles I’m in danger
Time for a sequel?
Thank god I have an essay on this tomorrow
1929: Great Depression
2020: Greater Depression
Kawaii Nepu we only have ~15% unemployment in April, compared to the 1:4 of the Great Depression
@@SneedyKetler We aren't even close to seeing the worst of this.
Can’t wait for the Greater Depression next decade
It's already here in 2020
Devansh It wont be THAT bad