Recession? No, Depression: Deja Vu All Over Again

| November 23, 2020

I’ve already addressed this subject before: two financial analysts, using different methods, have already forecast a recession that will last until mid-2024. It does not matter who is in the White House, trying to run things.

It will not matter one teensy weensy bit who sits in the Oval Office: it is already underway and will continue.  Throwing money at it is not the answer. Work programs? There’s plenty of work if the current nasty virus (which is picking up speed in cold weather, as viruses do) would just go away and stay in a cave somewhere. That isn’t happening, but the vaxxes that have been tested are nearly ready for public use, as of this morning.

Economist John Wells puts his view of the current financial mess, and what to expect down the road, into the perspective of how it will affect an already-struggling economy: https://www.zerohedge.com/markets/john-williams-warns-hyperinflationary-great-depression-coming

From the article:  Williams explains, “Put all the political turmoil aside for the moment.  The markets respond that this (CV19 vaccines) is going to turn the economy.  My point is it is not going to turn the economy…”  

“…at least not soon because of what has happened to the economy and the severe structural damage.  We have had a lot of companies go out of business, in particular, small companies.  A lot of people have suffered, and we are going to have more of that going ahead.”

Because there has been so much damage done to the economy, Williams says there will have to be stimulus no matter who eventually makes it into the White House. – article

As I said above, we’re already in an economic recession and it will continue, regardless of who is in the Oval Office. Wells tells us to regard it as a potentially drawn out economic depression, similar to the 1930s.

The economic depression that followed Hoover’s carelessness, including the financial crash of 1929 and bank closures, could have been prevented by a little foresight. Coupled with bad weather in the Southwest that went on for years, causing crop failures, deaths and economic poverty, there were few options available at the time to bring the USA back to its normal working order.

That was the reasoning behind FDR’s decision to start those work programs. The Civilian Conservation Corps (CCC) is what started the implementation of conservation programs that have given us the national parks we like so much. The Works Progress Administration (WPA) was an American New Deal agency, employing millions of job-seekers (mostly unskilled men) to carry out public works projects, including the construction of public buildings and roads. The PWA (Public Works Administration) built large-scale public works such as dams, bridges, hospitals, and schools. Its goals were to spend $3.3 billion in the first year, and $6 billion in all, to provide employment, stabilize purchasing power, and help revive the economy. Most of the spending came in two waves in 1933–35, and again in 1938.

By the time World War II became a real threat to the USA, these programs were coming to an end. When we became involved, Henry Ford converted some of his assembly plants in Detroit to meet military production needs. An additional set up near Dearborn was put together to build airplanes for the war.

This current economic crisis was partly caused by carelessness and a certain amount of general public denial about a frequently fatal disease. There’s plenty of blame to go around over it, but according to the last news report, the vaccines being developed to stop its progress are nearing the distribution point.

A smarter and more conservative Democrat like FDR could handle our current crisis, and likely make things work, and get the USA back in working order. The current crop of nutballs patting themselves on the back about “winning!” will, as Mr. Williams indicates in his video, run the USA right into the ground financially. They have no idea how to make things work, but they do know how to spend Other People’s Money.

What Williams is saying, bluntly put, is that we are facing another economic depression very similar to the Great Depression. This coincides with the forecasts by those other analysts, so that brings the total to three, whos opinions are more valid than that of any politician on the planet. The fiscal incompetence of the current crop of Democrats in Congress is already well-known. It is valid to be concerned that they will only make things worse.

What I’d really like to see is the current younger generation being told that they have to participate in work programs if they want to get monthly or twice-monthly checks from Uncle Sugar.  If a WPA work program was good enough for my mother, who did have job skills, it should certainly not be demeaning to those kids, should it?

Your tax dollars are at work here, people. Doesn’t mean that they’re necessarily being used for your benefit, either.

Frankly, it does not matter one bit who sits in the Oval Office. This is going to happen, period. Whoever has that job over the next four years will get blamed for the mistakes, the excesses and any and all failures, massive or not.

I would not want that on my record.

Category: "Your Tax Dollars At Work", 2020 Election, COVID-19

Comments (27)

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  1. 11B-Mailclerk says:

    FDR -prevented- recovery by bolloxing up the economy with the command-economy fad of the month.

    If WW2 had not left us as the only intact industrial power, we might never have recovered.

    We will see the same idiocy from a Donk admin. Permanent “temporary” help that never helps -end- the problem. Instead, we shall have Perpetual dependency, Perpetual dictates, and Marx uber Alles.

    • 5th/77th FA says:

      ^Word^ And what David points out below. There are too many that just flat don’t want to work. That’s getting worse too. There is a dire need for craft type people for jobs going begging.

      And no, ever who is in the WH, be it groping joe or the ho, they will blame Trump. It’s their way.

    • USMC Steve says:

      Many of the items I have read stated that the US still was not fully out of the great depression when WW2 started, but the war jumpstarted our economy and we came out fine then.

      Maybe Joe and da Ho will start the CCC up again and everyone can have government jobs.

      • 11B-Mailclerk says:

        We had the only remaining un-devastated industrial economy of significant size. We prospered because the end of the war was just re-setting the output.

  2. Read the above which makes cents.

    • Anonymous says:

      Thanks, Democrats!!

      • OWB says:

        Don’t forget that the media told us for weeks, if not months, before the election that this is how the numbers would fall. We heard over and over again how the early numbers would be high for Trump, because Trump voters would all vote in person, and that the mail in vote would ALL be for Biden. How they knew that NO Trump voter would be mailing in their ballot is, well, peculiar.

  3. David says:

    Problem is that we need to radically restructure the entire “benefit” system. Work for what you get if you are able. Quit paying for able-bodied people to NOT work. During the Depression people wanted to work to get off relief…. now we have made relief so fiscally attractive a lot of people do not want to work. I recall seeing people scrubbing roadside markers in Germany. We have hundreds of thousands of potholes going unfilled. Trash blights our landscapes. This could be extended for hours… but I think you get the gist. All it would take is leaders… which we seem to sadly lack.

  4. rgr769 says:

    There is no way twenty somethings will work for their federal gov’t check/direct deposit. Why would any member of the FSA work when the D-rats won’t require it for the bennies. They would rather stay on the couch and smoke weed. And in Oregon, they can do coke and heroin.

    • UpNorth says:

      A post I saw earlier today on Algore’s internetz stated, “Make welfare as hard to get as Veteran’s Benefits”. Sounds like a plan.

  5. Sapper3307 says:

    If I don’t want free college can Biden just give me a free Cadillac with free insurance?

  6. Bill R. says:

    I live in the suburban Detroit area. I see Help Wanted signs everywhere i go. i have friends who work at various production facilities and they cannot run more than one shift because they can’t get any employees. My brother runs our landscape company in Florida. They just voted in a $15 minimum wage in graduated steps. Our bottom line is such that we cannot afford to pay that. We have had to give up customers because he cannot get anyone to work. There are shitloads of people out there who are just too lazy to go back to work and we need to stop paying unemployment to them.

    • Ex-PH2 says:

      Before I retired, I worked in Accounting, and never saw anyone more unwilling to work extra hours or weekends than the people who were half my age then. I still can’t figure that out. I still haven’t figured out that attitude, because I frequently worked overtime on weekends, was paid well for it, and appreciated the extra cash it brought me.

      Maybe it’s the difference between Mommy telling us if we wanted an allowance, we had to earn it, and these other “kids” having it just handed to them, and never having to go hungry because Mommy would always fix something for them.

      Perhaps a real economic Depression with no jobs available and unemployment dropped to just below the “living expenses’ level might do it, buy I doubt it. They need to go hungry and cold before they “get it”… or else I’m simply cynical from watching those lazy twits run out the door on Friday night, even if they hadn’t finished their workload.

      • A Proud Infidel®™ says:

        I work in a place where it’s quite easy to earn $80-90K a year and we still see twentysomethings quit that place like it’s a fast food fry cook position!

      • Mustang Major says:

        Ex-PH2- I have an untested behavioral economic theory called “Sufficing.” A sufficer works to the extent that they meet their immediate financial needs, but not their future needs.

        For example: John needs a net income of $1,200 a month to cover his expenses. Work generating income above $1,200 isn’t necessary to his lifestyle.

        Sufficers are all around us.

      • Anonymous says:

        Success is “getting noticed” and given their achievement now, not working for it.

  7. MI Ranger says:

    EX-PH2,
    Not sure I agree with yours and Mr. Wells opinion that no matter who is in the office it is going to happen. The current President had many business stimulus in effect before the Chinese Flu hit, and we have once again begun to see the economy recover. If Mr. Trump had been re-elected it is likely he would have been able to avert this recession.

    However I will agree with your assessment of the presumptive President’s ability to divert or even slow it down!

    • Ex-PH2 says:

      Well, I took the view that no matter who is in that job, the recession will continue BUT the side effects might be lessened or worsened, depending on who has the job.

      Since it’s likely gonna be Biteme, I saw it as getting much worse than it would be otherwise.

    • 11B-Mailclerk says:

      Prosperity is bad for progressivism.

  8. Mustang Major says:

    Go long equities. You heirs will thank your foresight.

  9. Skippy says:

    The debt if not properly addressed soon is going to crush us….

  10. Slow Joe says:

    Government worp programs?

    That’s communism.

    The only thing the government needs to do is to lower taxes and stay the hell away from the economy. If only we had a President like Donald Trump who could understand that.

  11. rgr769 says:

    I hate to question your historical perspective, but most economists and historians concur that FDR’s depression fighting measures did not end or significantly ameliorate the Great Depression. The war is what ended it. Even before 12/07/1941, FDR knew we would be drawn into the war and significantly increased defense spending. Defense spending and the massive mobilization of the population to work in defense industries is what gave us full employment and the end of the effects of the Depression. But I think government work programs are better than just handing out money to people.