Tuesday, August 31, 2010

The dust bowl

Saw an interesting show on History Channel.

About the dust bowls of the 30s.

The dust storms themselves reduced the sun, and prolonged the dust bowl, so they claimed.


There are several factors that were different for the great depression, in my opinion, that made the new deal perhaps the right choice for that time.
The biggest of all was the lack of rain. A very big coincidence that it coincided with the depression.
But times are different today. We have infrastructure and we have technology. So many things are already in place to keep the economy going along even though unemployment stays high.

Back then stimulus was the right choice.
Today, it is not, the right choice is for government to do very little, and let capitalism fix itself.

In my opinion.


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