American academic says similarities exist between Wall Street meltdown and Great
Depression
Washington, Oct.11 : A professor of history and director of American Studies at
Temple University, Bryant Simon, has said that there are some obvious similarities and
differences between today's crisis and the Great Depression of the 1920s and early
1930s.
But the one key difference, said Simon, is that society in the 1930s was better
organized, and social groups -- such as labor and even small business groups -- were
better able to push back against Congress.
"First, both were triggered by speculation, unregulated financial markets, and a
failure of confidence. FDR closed the banks to restore credit," said Simon.
"Additionally, both crises were all-time lows for Wall Street – although the
anti-Wall Street language in the 1930s was more pointed and directed," Simon noted
But, according to Simon, the Great Depression was much more severe because it hit a
nation without a safety net. When people fell there was nothing to catch them.
"That safety net was built by the New Deal and whatever the New Deal's flaws it has
helped to prevent another collapse by allowing people to keep spending," said Simon.
A key difference, said Simon, is that society in the 1930s was better organized, and
social groups -- such as labor and even small business groups -- were better able to push
back against Congress.
--ANI
