Well, I've seen a devastating graphed comparison between the stock markets of 1929 and 2014. I've seen two articles from business professionals arguing for and against the accuracy of the chart. Here are the articles I used, for any of you who want to check facts quickly.
http://www.marketwatch.com/story/scary-1929-market-chart-gains-traction-2014-02-11 (For)
http://www.businessinsider.com/1929-stock-market-crash-chart-is-garbage-2014-2 (Against)
The Market Watch believes that this will be a devastating depression. The Business Insider claims that the Market Watch is crazy. It won't be a mere 44% drop in the stock market. It will only be a mere 24% drop.
Let's pause and think about that. TWENTY-FOUR PERCENT. That's enormous. It will have huge repercussions if even the moderate estimates of BI are correct. If I'm correct...
In my personal belief, we are screwed. This will be of Great Depression proportions with slightly awkward twists. There are several factors that make this depression devastating that I would like to point out:
1. Poor soil for the economy. We've lost 11th place in the 2014 Index of Economic Freedom to Estonia (MU ISAMAA!), and the current administration has done very little to improve the growth of profitable businesses. Before the Great Depression, the government wasn't half as large and wasn't half as obstructive, so of course business would skyrocket in comparison to today's business. The loss in both scenarios, however, may just be about the same.
2. Globalism. I hear on radio broadcastings that China is eating more than it can chew, financially. If China's market blows up before ours, America's market will likely fall in a matter of hours, and vice versa. Any nation dependent on China for cheap goods or America for capital will crumble as well. Thus, since we feature a globalist economy, our loss will mean loss for the entire world like never before.
3. A Slippery Slope. Yes, that is the name of a fallacy that I might be using, but, given the example of the Great Depression, is not far off. Sure, the stock market might drop a "mere" quarter, but 44% wasn't the end for the stock market of the Great Depression. It fell again, and again, and again, until there was little left of the stock market. It would be foolish to assume that the quarter-drop will be all. (Check http://www.amateur-investors.com/Chart_History_of_Stock_Market.htm for confirmation. I used it.)
4. Psychological Implications. This is by far the most important one. As of right now, citizens of the United States are living their comfortable lives, oblivious to the economic cliff just on the horizon. We believe we are invulnerable to harm, to (unusual) economic hardships, and to tyranny. There is a feeling of complacency with the United States government and resistance to business like never before. This upcoming depression will shatter our illusion of invulnerability, and we will be exposed to the worst economic hardships in over sixty years. We will march to the government, demanding our jobs, our money, our stability, and our invulnerability back.
The government will only need to point a single finger at the large American corporations, the most devastated victims of the economic downturn. "There are your jobs! There is your money! See how invincible they are! Bring them down to size!" And, just like the Jews in Nazi Germany, the rich will be the perfect scapegoat while the government seizes power and takes the reins as it tries to wrestle with the rampant economy. Everyone except you and me will run like blind sheep at the rich, eager for their money and furious at the fact that the rich can't pay them.
I mean, it happened during the Great Depression. Few fingers were pointed at the rich, but the government (particularly the executive branch) expanded in power to the point where it could no longer be considered a mere representative of the people. With the class warfare today, it will be the one-two punch for liberalism and statism.
So sure, Mr. Boesler, it may just be a minor dent in the invincible economy. You just better hope and pray that there are no major consequences. Heck, we better all hope and pray.
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