Myth or Fact? The Great Depression

The Great Depression began in 1929. The stock market crashed. People freaked out and rushing to banks to get their money out. The money wasn’t there because it had disappeared along with the stock market crash. The government’s intervention didn’t help at all. The banks loaned too much money. The free market before hand was doing good it would be beneficial and then a downfall and switch between the two naturally. Government’s involvement helped lead to a great downfall. Hoover was president in March 1929 and “during [Roosevelt’s] campaign Hoover for spending and taxing too much, boosting the national debt, choking off trade, and putting millions on the dole.  He accused the president of ‘reckless and extravagant’ spending, of thinking ‘that we ought to center control of everything in Washington as rapidly as possible,’ and of presiding over ‘the greatest spending administration in peacetime in all of history’” (Lawrence Reed, The Great Myths of the Great Depression). After Roosevelt’s election he didn’t do any better. In the first months he had sixteen acts made and passed by congress, in order to get out of the great depression; such as the National Industrial Recovery Act, the Emergency Banking Relief Act, and National Employment Act.  President Roosevelt broke his promise. He created the New Deal that controlled a huge part of the economy. Unemployment increased along with inflation. The government’s interference and creation of many regulations caused a greater downfall. The economy ended up in a lot worse shape then it could have been.

Charter City

            If I were to have my own city, I would create a united government that would make sure our rights are protected. We would have things that would allow us to work together and be united. We would have a free market economy that is guided through the work of the invisible hand.

            The rule of law would play a huge part, by making sure that the people individually along with the government are not greater than anyone else or the constitution. The rule of law includes prosperity, generality, publicity, consent, and due process. According to Mullene, the rule of law only works like the Tinkerbelle effect, which is the idea that the moment we stop believing in it, then it no longer exists. We must not only believe it, but also follow it.

             

            We would have a free market economy. In our society, like in every other one, we would face scarcity. This scarcity would allow us to make trade-offs, which would lead us or help us to make choices that benefit us. Our self-interest would lead to the benefit of our entire society as a whole. We can look at opportunity cost that comes from scarcity. Our self-interest would allow our society to grow and move forward.  Through free trade our economy can prosper and trade and produce what we need and is our best self-interest. Trade is key in helping us grow as a society. Paul Romer says that China used to be a dominating country, but never traded their technology and suffered because of it. So if we trade and expand our resources, then we will grow and become stronger.  We must not be greedy, because if prices are too high; then no one will buy. If prices are too low; then buyers can’t afford to produce and sell which causes scarcity. The supply and demand curves would help us get equilibrium and suppliers and consumers would both benefit, along with our society as a whole. In the greed video we learned that most people do the things necessary for themselves, but in the end they also help others in an overall view.

Happiness will be essential in our city.   Today a lot of people do not have true happiness. They are too serious. In my city, I want to have a blue road and more exciting speed limit signs. Some examples would be having signs that say thirty-five point four instead of thirty-five. There would be more natural scenery, such as trees and flowers. Yes, this would be nice, but in a more serious sense, we would have more people of a Christian calling. Not everyone has to be a Christian to fulfill the Christian calling. People would be more loving toward their neighbors, serve each other, and be the best they can be, for not only for themselves, but also for others. These things can better help any society.  Thomas Jefferson said that the sum of good government shall leave citizens “free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of the labor the bread it has earned.” This is important because if we all as individuals try to better ourselves, than we will also in effect create a better society.

This society will be strong and great. We can grow through these different aspects of free market and trade, rule of law, property rights, life, liberty, and happiness. Our society can grow and become great if we work hard to protect our rights and better ourselves. Government will have an important role by making sure our needs are met and we are protected. We can through this be a strong city and be an influence to others.