A historical overview of what may happen in the near term......
http://en.wikipedia.org/wiki/Franklin_D._Roosevelt
Franklin Delano Roosevelt (January 30, 1882 – April 12, 1945), often referred to by his initials FDR,
During the Great Depression of the 1930s, Roosevelt created the New Deal to provide relief for the unemployed, recovery of the economy, and reform of the economic and banking systems, through various agencies, such as the Works Project Administration (WPA), National Recovery Administration (NRA), and the Agricultural Adjustment Administration (AAA).[1] Although recovery of the economy was incomplete until World War II, several programs he initiated, such as the Federal Deposit Insurance Corporation (FDIC), Tennessee Valley Authority (TVA), and the United States Securities and Exchange Commission (SEC), continue to have instrumental roles in the nation's commerce. Some of his other legacies include the Social Security system and the National Labor Relations Board (NLRB).
**I expect the goverment to grow, which is a further drag on the economy in the long run**
Roosevelt's election to the presidency brought about a realignment political scientists call the Fifth Party System. His aggressive use of the federal government created a New Deal Coalition which dominated the Democratic Party until the late 1960s. Roosevelt introduced new taxes that affected all income groups
In his acceptance speech, Roosevelt declared:
“ Throughout the nation men and women, forgotten in the political philosophy of the Government, look to us here for guidance and for more equitable opportunity to share in the distribution of national wealth. **Share the wealth? I seem to have heard that recently?.. ** I pledge you, I pledge myself to a new deal for the American people... This is more than a political campaign. It is a call to arms.[29]
The economy spiralled downward until the banking system began a complete nationwide shutdown as Hoover's term ended.[35] In February 1933,
When Roosevelt was inaugurated in March 1933, the U.S. was at the nadir of the worst depression in its history. A quarter of the workforce was unemployed. Farmers were in deep trouble as prices fell by 60%. Industrial production had fallen by more than half since 1929. Two million were homeless. By the evening of March 4, 32 of the 48 states, as well as the District of Columbia had closed their banks.[38] The New York Federal Reserve Bank was unable to open on the 5th, as huge sums had been withdrawn by panicky customers in previous days.[39] Beginning with his inauguration address, Roosevelt began blaming the economic crisis on bankers and financiers, the quest for profit, and the self-interest basis of capitalism
** This is only what has happen before, the comparisons are eerie to say the least. The key is to prepare in case it happens and have a good day anyway.....**
