Just like then opportunities dried up a lot when the Great Recession began. And because the causes of the Great Recession were many times worse than the Great Depression (most people don't realize this) and this is why they are so surprised that the economy in the U.S. and Europe and now the real estate bust in China are all not doing very well. China is sort of going through in some ways what the U.S. went through in 2006 through 2009. However, their economy is a different sort, so not being forthcoming to the people like they tend to be in China will cause completely different kinds of problems than those that occur in a democracy. For example, if you can hide the truth from the common people you might be able to prevent runs on banks there in China. If no one knows a bank is in trouble because no one is told there won't be a run on that bank on penalty of death.
Also, in regard to opportunities it reminds me a lot of the 30s and 40s too.
The people that tended to do the best in business in the 1950s were the veterans of World War II who watched their friends head being blown off next to them. They had the needed ruthlessness to become the "Madmen" like in the series and other jobs like that. And also because of the ruthlessness necessary they also were the Building Contractors who built the hiways and roads and buildings and cities and factories and farms until the 1960s.
From 1960 to about 1973 we were the richest per capita any nation had ever been on the face of the earth. But, that isn't true anymore.
I think at that point 30% of the population controlled 70% of the wealth during the 1960s. Then during the 1980s it went to 20% of the population controlled 80% of the wealth.
But, since the Great Recession we are now at Third World types of ratios because now 10% of the people now control 90% of the wealth.
Strangely enough, this is the ratio that actually caused the Great Depression in the First place. So, because of this ratio we are ripe from a Great Depression in this way.
Why does a 10% controlling 90% of the wealth tend to cause this?
Because at this point the middle Class and poor have no vested interest in maintaining the wealth of the wealthiest 10%.
Things this out of balance like we have now tend to create revolutions (Ferguson) and it also tends to create (Do Nothing Congresses) because the Congress has all been bought(one way or the other) (directly or indirectly) with only the President truly elected by the people at that point.
So, with the middle class and poor no longer giving a rats ass about protecting the wealth of the 10% you see we are now ripe for revolutions both social and physical. This is an unfortunate fact of life.
Will this change?
That depends upon what people in the U.S. and around the world do next?
So, whether it was the French Revolution (similar dynamics) or whether you study revolutions in Mexico or South America the primary cause of revolutions is this 10% controlling 90% of the wealth and preventing the other 90% rising up into the 10% except in token ways.
The way this was changed during the 1930s was unions. However, many many people were beaten to death by thugs hired by companies to stop unions from forming and many died or were maimed by the thugs hired to stop unions from forming.
However, that created other problems when mafias often were a part of these Unions too. So, the solution solved some problems and created others.
However, now because of globalization unions might not work because if another nation can make something for less that very fact disables unions from forming or being created in many nations.
So, what can save the U.S. and other nations now?
I'm not sure.
What do you think?
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