After The Great depression.
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You can't wring your hands and roll up your sleeves at the same time. By Pat Schroeder Find out about After The Great Depression
Government Bailout & the Second Great Depression
How To Protect Yourself
Let’s face it; we are now entering the Unites States of America’s Second Great Depression. It will have devastating effects on the American people, businesses, and what is left of our growing economy.
This is not a minor problem that might limit your shopping sprees or your Starbucks coffee addiction. It is a major economic meltdown that will affect everyone and for those who are unprepared my find yourself unemployed, bankrupt, homeless, etc.
What do we have to do to protect ourselves in a crisis like this?
Follow these simple steps to reassure your survival in this bad economy.
1. You must find a means of making a secondary income or a full-time income that is worldwide, not just local, and has little to no overhead. Having a home-based business will create an income that is separate from your local economy with the advantages of having the worldwide market place at your finger tips.
2. You must watch closely at which bank you decide to put your money in; find a bank that has world wide locations or that is smaller with sound financial statements. At this moment the FDIC has exhausted its coverage abilities and may not have the funds to replace your savings if it was lost.
3. If you are getting ready to buy a new home, make sure that you could sustain the mortgage for up to 6 months with out a paycheck. Many people have already bombed this suggestion and their actions have created the housing crisis.
4. If you are a business owner or self employed, make sure that you are getting paid on time. If the payment is late, you should be implementing a more aggressive collection system. The last thing you want to do is let someone get a month or more behind, to find out that they just went broke.
5. If you are buying services on a regular basis from a company or person, make sure that they are delivering the services or product with the same quality. If any aspect of their service has changed it could be a sign of them going broke, and you do not want to be the person that paid for something and did not receive it.
6. If you rent an apartment or home, it would be an excellent idea if you watched for leans or signs that the landlord is not paying the mortgage. In repossession, you will be removed from the home when the property is taken back by the bank. This could leave you and your family without a home costing you several thousands of dollars; all while paying money to a landlord for months that he was just pocketing until the bank repossessed the building.
7. If you are an employee, beware of losing your job. If you are seeing sales decline there is a good chance that many people will be let go with no chance of returning. If you feel that you are irreplaceable and that somehow the business can not run properly with out you, think again. When a company is loosing money and needs to find a place to reduce expenses in order to continue conducting business, it is the employees who are cut first.
It is best to be prepared and learn how to protect yourself during times of economic trouble. Those take action and are prepared with fair best in the long run.
By Jason Allen Miller
http://www.jallenmiller.com/find
About the Author
Jason Allen Miller is an entrepreneur, inventor, business owner, investor, speaker, educator and author. After college at the University of Wisconsin and a brief time as an employee, he decided to begin purchasing investments and owning businesses. He owns or has owned numerous traditional businesses and investments ranging from small businesses, real estate, franchises, home-based businesses and inventions, to large conglomerates with hundreds of employees.
Today he continues to write and educate people on the advantages of owning their own home-based businesses along with currently owning and operating many businesses in the Pacific Northwest. Besides the United States, his other ventures are in Canada, United Kingdom, Germany, Denmark, Japan, China, Taiwan, South Korea, South Africa, Australia and New Zealand.
His passion is business systems and education, along with helping people realize their dreams of becoming entrepreneurs. He is married with two children and spends most of his time in the Seattle Washington area. For more information go to: http://www.jallenmiller.com .
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After the great depression and WWII, the U.S. government decided to provide economic policy because?
a. Laissez-faire ideas failed during the Great Depression
b. The new ideas of Keynesian Economics have been proven to be better
c. Germany and Japan won WWII
d. All of the above
e. A and B only
None of the above.
http://en.wikipedia.org/wiki/Economic_history_of_the_United_States
To the previous answerer, let me note that Germany and Japan did NOT win World War II, so the answer cannot be d.
Regarding a, laissez faire ideas were not tried during the Great Depression so they could hardly have failed. One of the reasons the Great Depression became "great" rather than just a "minor" crash is the Smoot-Hawley tarriff act.
http://en.wikipedia.org/wiki/Smoot-Hawley_Tariff
Tariffs are NOT laissez faire:
http://en.wikipedia.org/wiki/Laissez-faire
Note that there are arguments that laissez faire policies caused the depression, but that is standard Keynesian analysis and applied to the causes, not to the government reaction.
Regarding b, however brilliant and insightful Keynes was, and however correct his analysis and theory, it is not all clear that his ideas have been proven to be useful in practice. While politicians are happy to start deficit spending when times are bad and Keynes would say it can help, they are very reluctant to tighten monetary policy when they should.
As William McChesney Martin put it: "the job of the Federal Reserve is "to take away the punch bowl just as the party gets going," and politicians don't like that.
http://en.wikipedia.org/wiki/William_McChesney_Martin,_Jr.
And it is certainly the case that Alan Greenspan and Ben Bernanke did not "take away the punch bowl" and that that (the low interest rates) was one of the factors behind the sub-prime mortgage fiasco.
http://en.wikipedia.org/wiki/Subprime_mortgage_crisis
http://en.wikipedia.org/wiki/United_States_housing_bubble
So Keynesian ideas do seem to work when applied correctly, but can they be applied correctly over the long term?
As for the "decided to provide economic policy", the U.S. government has always had an economic policy. It was not the case that it didn't have one and then decided to start having one.
http://en.wikipedia.org/wiki/Economic_policy
It is the case that the Council of Economic Advisers was established after WWII:
http://en.wikipedia.org/wiki/Council_of_Economic_Advisers
But to the extent that the council provided objective advice, it was ignored; to the extent that it was listened to, it was because it said what the president wanted to hear.
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thank you for posting this one up..it is very interesting