I’m not really sure what to make of this “economic crisis” we’re apparently in. On the one hand, it is rather unnerving to watch a number of banks give up the ghost, including Washington Mutual (based right here in Seattle), but on the other hand, it doesn’t seem to be impacting me at all. Sure, I’m having a hard time getting a job, but, considering my past luck in procuring employment, that’s not surprising in the least.
It’s an interesting coincidence that I’m taking a history course right now that’s dealing with the economic situation of the 1930s, including the Great Depression and Franklin Roosevelt’s New Deal. There were numerous bank failures and credit problems during that time period, just as there are now. It’s a bit eerie, but I have noticed that the proposed solutions are nothing like FDR’s solutions. Of course, the situation today isn’t nearly as dire (unemployment is still around 6%, not the whopping 25+% of the early thirties), but I have yet to hear any decent explanation of the bailout that just died in Congress. Why $700 billion? What would that money be used for? What good would that do? No one is really telling. Contrast that to FDR’s fireside chats over the radio, where he explained to the American public in straightforward terms what the government was doing to deal with the depression. President Bush’s recent speech about the economy wasn’t exactly informative or reassuring, even if he did avoid using the word “depression”.
The thing to remember through all of this, though, is that self-regulation by corporations (even banks) is not necessarily a bad thing, just as regulation by the federal government isn’t necessarily a good thing. I don’t know how this situation will be resolved, but I know that more government interference in the market is not the right answer. After all, the Great Depression didn’t end because of the New Deal. For better or for worse, it came to an end due to the onset of World War 2, when industry picked up to improve the U.S. military. Hopefully we won’t need any such thing this time around.
