Sunday, February 12, 2012

Leta's Panic Response

  1. Use the blog to answer or comment on these questions.
    1. Why look beyond the Great Depression when trying to make sense of our current economic woes?
    Looking beyond the Great Depression is important because no “panic” has been exactly same, we cannot make complete sense of our economic woes by only looking at one crisis. The financial crisis we are experiencing now is not exactly like the Great Depression, or any other panic, however by piecing parts of each one together we might be able to better prepare ourselves for the future. In fact, Professor Scot Nelson believes that the panic of the 1870s is most similar to current financial crisis, not the Great Depression. 
    2. Where are these professors from?
    Peter Onuf (18th century guy) is the Thomas Jefferson Memorial Foundation Professor of History at the University of Virginia. Ed Ayers (19th century guy) is President of the University of Richmond. Brian Balogh (20th century guy) is a Professor of History at the University of Virginia. Michael Bernstein is a professor at Tulane University and Scott Nelson is a professor at William and Mary College.
    3. What are some of the differences between the 19th century panics and those in the 20th century?
    The 19th century panics were more related to bank failures related to collapses in agriculture, while 20th century panics are more related to consumer welfare and company failure. 
    4. Briefly explain the "business cycle."
    The business cycle is a pattern in commerce that often lasts about a decade. When things are going well in the business cycle, companies are growing. However, as companies get bigger, more resources are required, and therefore costs rise. There is a peak where the company requires more than it can actually make and the cycle turns around. The more difficult part of the business cycle is when companies are downsizing. When companies cannot turn around at the bottom of the business cycle is when things go bad.
    5. Define hubris. What example does Great Depression expert Michael Bernstein provide?
    Hubris is basically excessive pride and over-confidence. Michael Bernstein uses this word describing economists when they think that the business cycle has been solved. 
    6. Name the years of five other Panics besides the Great Depression.
    1819, 1837, 1857, 1873, 1893
    7. Why do you think no one has ever paid reparation to those who have lost money in these meltdowns even though laws were broken?
    No one has ever paid reparation to those who have lost money in these meltdowns because the people in control, who invented the system, and maybe the people with the true power to punish, are the ones committing the offenses. It is also difficult at times to distinguish between incompetence and fraud. 
    8. Who made up the Progressive Party?
    The Progressive Party (also known as the Bull Moose Party) was founded by Theodore Roosevelt and was made up by people who had broken off of the Republican Party. 
    9. When did they form and what led to the formation?
    The part was formed in 1912 after the split of President William Taft and President Theodore Roosevelt. Roosevelt was originally a Republican when he left office in 1909. He selected William Taft to succeed him, however he ended up not agreeing with Taft’s policies and then ran against him as a member of the Progressive Party.

1 comment: