Optimism
The cure for sparking a recovery following the collapse of the economy was initially as simple as inspiring confidence that the collapse was not devastating. The author suggests that such a cure was actually not as misguided as it may sound and has in fact worked at other times. The shelf life of such a cure, however, is remarkably short and two problems immediately became apparent:
“the collapse was far worse than almost anyone realized, and optimistic talk is a drug that either works in the initial dose or not at all.”
The Ku Klux Klan
The power of the KKK extends beyond what many people think. World War I had the effect of stimulating an America First mentality that eventually manifested in economic terms. This would not be so surprising if more people understood that the re-emergence of the KKK in the 1920’s was in a form structured much like Amway or a pyramid scheme or, as the author puts it, the Klan was
“organized rather like a modern fast-food franchise, but in this case the product was not hamburgers but hatred.”
Reversal of Fortune
Today, when historians draw up their lists of the worst Presidents of the 20th century, one name will assuredly wind up in the top two (usually at number one): Herbert Hoover. Hoover today is viewed as the engineer of the Great Depression as a result of almost incomprehensible incompetence. This images stands in stark relief to that on which he was sold to the American public that wound up electing him:
“His publicity agents were so successful in selling their product that Hoover was generally seen in the twenties as a `human symbol of efficiency,’ a super businessman who could solve any problems that might arise.”
The Lesson
The Great Depression has been since it threw the world into a decade-long tumult, the single most important subject for case study in economics. For one reason: to prevent it from happening again. The difficulty level in this study is put into metaphorical context by former Chairman of the Federal Reserve Ben Bernanke:
“To understand the Great Depression is the Holy Grail of macro-economics.”
The Flappers were to Blame!
The excesses of the 1920’s is singled out as one of the contributing factors to the collapse of the economy and onset of the Great Depression. According to one person in particular—then President of the University of Florida—one excess in particular was worthy of being singled out for blame:
“The low-cut gowns, the rolled hose and short skirts are born of the Devil and his angels, and are carrying the present and future generations to chaos and destruction.”
