Friday, November 14, 2008
Period 1: The 1920s
What did you see in the film about the 1920s that is similar to the economic problems we are facing today? What do you think the government should be doing to ensure that we don't end up in an economic depression? Make one reflective comment and after everyone has commented, then respond to at least one other student's opinion. The Post will close at the end of the period.
Mr. Gallagher
40 comments:
I think it's evident that when the American people lost faith in the banking system, and when mass panic causes people to withdraw money in a mad rush, it caused banks to close down because they'd simply run out of money.
similarly today, people are beginning to lose faith in the system again, and if we do not recognize this for what it is early, the same scenario will inevitably arise.
Like back in the 1920s, people today are cautious when spending their money. when the market crashed in the 20s people wouldn't pay for anything they didnt need, this caused companies to stop producing goods and go out of buisness.
Similarly today, many well known buisnesses are declaring themselves broke because no one needs to buy a new car, or a new fridge.
similarities include a failing auto industry, corporate company bail-outs, high unemployment rates, home forclosures, company downsizing, a stock market collapse, and people buying things they couldn't afford. i think the government should regulate large scale business to make sure they can support their investments. this way banks and employee positions will be more stable. alos, people should not be able to take out unrealistic loans for big purchases like cars or homes.
Similar to the 1920s, there has been a lot of consumer spending and risky investing in the past few years. People bought a lot of stuff on credit too. The government should be heavily regulating the major financial companies that caused some of the problems we have right now. Instead the government is giving them billions of dollars and we don't know what they are doing with it. There needs to be a solid plan to reverse the problems.
The film revealed many similarities between the economic problems of the 1920s compared with those of today. The depression of the 1920s was brought about because people and investors were buying products and stock without actually having the money to back up their purchases. This created an unstable economy constantly on the verge of going under. Eventually, the stock market did crash and the great depression ensued.
These same types of problems are similar in the economy today. The housing crisis in this country was brought about by sub-prime lending, resulting in national banks having control over the wealth of the nation. This instability in the housing industry, as well as that with the automotive industry, and credit industry, mirrors the similar crisis in the Great Depression. In both Instances, after periods of great prosperity, like most of the 1920s and the 1990s, the base of the economy eventually had to break. People and industry were buying beyond their needs and were investing in a manner that was far to wreckless. Because of this, jobs will be lost today and the nation will suffer, much like in the great depression.
-Jake J
Many of the economic problems that we have today also happened during the 1920s. In the 1920s people began borrowing money from banks to buy expensive new items like refrigerators and washers and dryers. Many other people borrowed money to buy stocks and later could not pay back the money they borrowed. This eventually contributed to the stock market crash. Similar problems are occurring today as people are getting loans to purchase houses that they can't afford. Many people are unable to pay back their loans for their house.
Economic problems in teh 1920s similar to today is the amout of money that people spend that they never had in the begining. A few years ago when almost everyone was buying expencive cars and houses they would take out loans they couldn't pay for. It's similar to the people buying lots of new items in the 20s and having payment plans so it didn't seem like they were paying alot. However in the end they can't pay for everything they have bought, putting the economy in debt becasue people are so in debt paying for the things they bought years ago today instead of buying new products.
The government could start plans to make cheaper cars and houses and put money into the banks so that they dont crash.
-Taylor E.
When watching the film about the 1920s i noticed many similarities between the economic struggles now and back in the 20s. One thing that was similar was how in both cases credit led to the problems. In the 20s people were buying things that they couldnt really afford because they bought them on credit. This is happening today with major companies failing because they could not back up their credit investments. I think that the government should be regulating large companies to make sure they dont get over their heads in debt. Most of the current situation could have been avoided if companies hadn't treated debt and credit as if they were really money. Another thing that can be done is the encouraging of people to get out and spend money, not just hoard it like people did in the 20s.
There seems to be a common trend between the 1920s economic problems and the problems we have today. People were investing and spending money they didn’t have. This took a huge toll on banks and eventually they went bankrupt. I think that the government should be putting more restrictions on the banks so that they aren’t allowing them to loan so much money out. All of the industries that are directly affected by this such as real estate and the automotive industry are suffering huge losses because no one is buying from them so they have to lay off employees and cut back on all their costs.
A similarity between the economic problems in the 1920s and today is that people spend money too easily. Just like back then when installment plans were created, people today buy things on credit that they really can't afford, or they take out loans for things that they can't pay back. With so many people putting themselves in debt, people are able to buy less and less, and will only buy the essentials such as food, water, clothes, etc., and won't be going out and buying big SUVs, trucks, fancy new TVs, etc. This might cause companies to file bankruptcy because people just won't be buying their products anymore.
What America should do is realize what is happening with so many people today. It was harder to see coming in the 1920s because there were no real, easily-checkable credit lines that we have today. There are multiple companies that deal solely with helping people get themselves out of debt. The government should realize this and see the pattern and see what might be coming our way if this situation continues on the way it is.
The economic problems today are similar to those of the 1920s because when a business fails, everyone suffers. For example, the three largest car dealerships today are struggling and may end up declaring bankruptcy. This crisis would lay off 5 million employees all over the country. In order to ensure our country does not end up in economic depression the sellers need to either drop their prices lower than rival companies so buyers will prefer the product and buyers need to spend their money on things they can actually afford instead of taking out loans when they can’t pay the bills.
The economic problems showed in the film that are similiar today is the crashing of the stock market, which caused the start of The Great Depression. Right now, in the present, the stock market is also crashing, and jobs are getting harder and harder to find.
The movie showed us that people bought what they needed thinking they could afford it, but really couldn't. This is what it is like today. A lot of people, today, have more than five credit cards which they use to make their purchases. They think they can afford what they are buying, until the bill comes at the end of the month.
- Matt G
Similarities are that today banks are going out of business, and stores are losing business, which results in people losing their jobs. Washington Mutual, for example, went bankrupt, I believe, so they're closing down, and Linens-n-Things also went under bankruptcy. And because these companies are closing down, the people working in the industries will lose their jobs. I think the government can help by not spending the money on useless projects so that when a crises occurs, we have money to spare.
Marufa
The film we watched the past two days showed various economic problems that the American people faced in the 1920's. During this time period, after WWI and before the Second World War, the economy went from boom to bust. In the early twenties the economy grew and flourished and the prices of things like automobiles and household appliances dropped dramatically. In 1929 the stock market crashed causing a country wide depression. Today the economy is also in a dire state. As like in the 1920's the economy dropped very fast and over a short period of time and with this drop many people looking the get rich quick bought all the bottomed out stocks hoping they would sky rocket. Very few cars are begining sold now and back in the great depression. Also, many big companies and banks failed and went under during both periods, the 1920's and today in our society. I believe the government should learn from the mistakes made in the Great Depression and regulate the use of people using credit and banks lending out money that they didnt really have. Also, the bail out for big banks is also a possible option for help and move toward stability.
-Austin Evans
I agree with nick, when he says that everyone is becoming more cautious of what they are spending. Jobs are becoming harder to find, which means money is getting harder to earn.
- Matt G
In the 1920’s, Germany was borrowing money from American banks in order to pay off their reparations from WWI. Today, Americans are still lending too much money to foreign countries and as a result, are hurting their own economy on the domestic front. Once the United States economy failed it caused an international, domino effect, because so many countries are dependent on American banks for borrowing money. When the American stock market crashed, stock markets across the world plunged as well. I think the government should engage in deficit spending in order to create more jobs through public works and government based programs in order to ease the high unemployment rates currently plaguing the country. Therefore, if more people are employed then there will be more consumers so that the mass production companies don’t fail as well.
In response to Zach's comment, I too believe that America should remember that we have many agencies that monitor our debts. And while it appears that this time around, our market is complelty crashing down, that we will pull through in the end. whenever that may be..
Like the 1920's, people are not spending money. There is some fear that the the stock market might crash, and every day it seems like companies are down in the stock market. Automobile companies are almost in bankrupcy, and may be forced to merge with eachother to survive. Currently the government can only help companies to stay afloat, because to the average American, a stimulus pakages would not go into the economy, but into car payments, mortgages, rents, and groceries.
I agree with what Marufa stated in her comment about the amount of jobs that people will lose with the companies and industries closing down due to the current economic issues. This problem along with the banks failing and stocks plummeting could potentially send the United States into a downward tailspin back toward a depression similar to the one in the 1920's. Also, i believe that the government does not spend there money wisely and should be working more on getting out of debt and saving money for when problems such as this arise.
-Austin Evans-Respond to Marufa's
I agree with Austin, in that our government should keep a closer watch on people's use of redit, because far too many people, now and in the 20's, took credit to be so much a buy-now-pay-later system that they didn't even see the pay-later portion.
I agree with Lizzy, she says that banks should have restrictions on them for handing out loans and i agree. When the banks know people can't pay for the loan or the investment, they shouldnt give the money to people. If people weren't alowed to take out so many or such big loans then they wouldnt end up in as much debt and would be able to pay of the money with out it acumulating in intrest over years and then never be able to pay it back causing masive debt.
-Taylor E.
What I saw in the movie that is similar to today is the automobile crisis, energy crisis, also cash crisis. We also see that at that time people fell in debt for buying things they could not affort to pay like houses and cars. People were holding to their money and that is waht made the stock market crash. I think that what the government did until today was right they stimulated the economy by putting large amounts of money to keep it from falling like in the 1920s. I also think that today we have more chances to push the economy up as Zack said because today there is more easily-checkable credit lines. There are multiple companies that deal solely with helping people get themselves out of debt.
I think there were a lot of similarities between the economic problems of the 1920s and today's economic problems. For example, rising stock markets both in the 1920s and in the 1990s have been some of the causes of economic problems of both decades because eventually the stock market would fall. Also, both in the 1920s and today, people have been taking out loans to buy things that they otherwise could not afford, but as a result, this would lead to debt. In addition, during both the 1920s and today, as people defaulted on their loans, the banks had been failing and going out of business. Also, both today and during the Great Depression that followed the 1920s, people have been working on money-saving techniques.
I feel that while the government's actions will be a huge part of preventing an economic depression, this prevention will actually require a combination of both the government working to build a stronger economy and the people saving more money. I think that while there are many things the government should do to protect the economy, one of the big things that they should do is figure out which spending is unnecessary since unnecessary spending results in taxes going up without improving the economy. I feel that as for personal responsibility in the economy goes, the people so far have been doing good with saving their money, but while the economy is uncertain, people should not let their guards down. For example, gas prices have dropped as low as $2.07, but this is likely going to lead to many people who do let their guards down returning to buying huge amounts of gas. However, I think that if the people decide to save money at the same time that the government is working on returning prosperity to the economy, the effort will be likely to succeed.
Andy H.
The film about the 1920s showed how much the nation was affected by the stock market crash. Companies began to shut down, along with banks. This caused people to lose the money they'd been saving. This is similar to what is happening today because as we all know, a couple of weeks ago, the stock market crashed and about $3 trillion was lost. This affected people that have accounts in banks like Sovereign. I know people who actually lost a couple of hundred dollars from their bank accounts.
In order to not end up in an economic depression, I think the government should lower tax payments and gas prices! Because of high gas prices, people are refusing to buy cars that take in a lot of gas which, at the moment, is affecting car companies. If car companies begin to shut down, the companies that they buy their supplies from will also be affected and so on.
- Ilsi D.
I agree with JJ. Stimulus packages will really help the average american. Since a lot of people are losing their jobs, they have no money to buy the necessities. Therefore, stimulus packages would help them pay for wat now seems ever more expensive rents and grocereies.
Economic problems that we are today were in fact prevalent in the 1920's. In the 20's there was a big economy watch. A lot of people lost their jobs therefore causing an increase in unemployment rates. Also, a lot of big companies were closing. Because a lot of people were buying things they couldn't afford people usually fell into debt. The prices of cars dropped because there wasnt much consumption and many more. As far as avoiding an economic depression, i believe that the government has to step in and according to the New York times, "provide economic stimulus in the form of higher spending and greater aid to those in distress ". The government needs to provide americans with more jobs since the unemployment rate is so high.
I agree with Nick M., that people as consumers today are more cautious about spending their money. Yet, I think that in the 1920’s people spent money extravagantly and believed they had more money than they really did due to the affluence of the decade as a whole. When the stock market crashed in the late 1920’s, people then had to change their affluent lifestyle and become more cautious about what they spend. Businesses started to go bankrupt as a result of the decline of consumers due to people spending their money more meticulously.
In response to Austin Evan's comment I agree with his idea that our country should learn from it's pasts mistakes; the Great Depression. People should not be crediting items they can not afford and banks should not lend out money to them because they do not actually have it.
I agree with what Lizzy said. I think that a big root of the Great Depression was the fact that people spent money that they did not have, and I think that recently that has been a huge problem in people's spending habits today. This is why I feel that solving the problems of today's economy is going to be a matter of both personal and government responsibility.
Andy H.
I also agree with Zack's comment about how people spend money way too easily which causes them to go into debt a lot faster. Then they're not able to buy anymore products which eventually affect companies and cause them to shut down!
- Ilsi D.
I agree with Lizzy. Banks are being hurt because people are taking out so many loans that they can't pay because of debt that they have or very soon will have due to the loan. The banks are running out of money. If anything, people are supposed to run out of money, not the banks. I agree that the government should begin to consider putting restrictions on the amount of loans a bank can give out.
I agree with Zack that the American people need to realize what they are doing. The rich business men of the country are easy to blame but it's not totally their fault. There should be more education about credit and other financial activities for younger people like us so that we don't get ourselves in this mess and ruin the country.
I agree with Austin and Zack, that the government really has to get involved in the current credit crisis and dire financial situation in order to help the country out of the trouble it is in. Zack stated that in the 1920s, it was probably hard to see this depression coming. I agree with this notion and agree that in the present day, there should be more responsibility taken by government to recognize the apparent economic troubles of our country and do something about it before crisis strikes. The government has a responsibility to limit the power of the banking and credit companies of the nation. The average individual living in this nation is affected by the current crisis, and it is necessary that government steps in to regulate the economy. I dont necessarily endorse a bailout plan, because I feel it will just end up giving more money to these dangerous banking organizations. Presently, its hard to see the long term effects of the current state of the American economy, but we can always learn from our mistakes, like those that led to the great depression
I agree with Joey in that the government should be watching large companies, because it is partly their fault that mortgage companies were letting everyone buy houses even if they couldnt afford it.
Zack, what you said about what the government should do makes no sense. Your saying thsat they should realize where the economy is headed. They did that already and still its not making a difference. I dont understand how simply realizing that the economy is going down the tubes can help anything. That is not in any way shape or form a solution.
I agree with Zack. The point of learning about history is so that we know what to do so we won't repeat our mistakes. If the government doesn't realize that we're on the same path to the same ending then there are going to be some serious problems. People need to stop being so careless with their money because it's hurting everyone else.
in response to marufa's comment, i wouldnt say that the government spends money on truly useless projects. they might make mistakes, but they dont spend randomly for the sake of spending. they spend to benefit something. which projects do you think are useless specifically. also, their projects put money in circulation and create a ton of employee positions.
If this carelessness keeps occuring within our economy, we might go into another depressions, which is something that no one wants to repeat. So I agree with Andy's first comment about how it's both the government's as well as the people's responsibility to help our economy.
Marufa
The problems of the 1920s are very similar to the economic problems today. The people of the 1920s were to free with their money and did not think about the consequences toward the economy when they were spending more money than they had. This is the same problems our economy is facing today. People are investing money they don’t have and businesses are allowing people to buy stuff they can never pay for. With spending like this, businesses are losing more and more money each day causing them to go bankrupt and be forced to shut down. I think that the government should be less lenient with the amount of people who are spending this money they do not have. I think that banks should no give loans out as frequently to people. I think that businesses should also try to lower their prices in order to sell things that people can afford, and decrease the amount of deficit spending. If businesses decrease their prices, then it will also help them not be lead down the path of bankruptcy.
I agree with Katie when she says that the buyers should be focused on spending their money on things they can actual afforded. They should not be taking out loans to pay their bills while they are spending their money on high end expensive products they cant afford.
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