In the quarterly report to the Berkshire Hathaway shareholders, Warren Buffet stated that he expects the U.S. economy to stay in shambles through 2009. His profits in the forth quarter fell by 96% down to $117m. This is the 5th straight quarter of falling profits for the Wall Street giant. The price of Berkshire stocks has fallen 44% this year. In this economic crisis, everyone is being affected. From your billionaires to your first time home buyers, people are feeling the effects.
Constantly people are comparing this economic disaster with the ‘Great Depression’, but one thing needs to be clear. What we are going through now is nothing like the Great Depression of the 30’s. Yes, there are some similarities: It’s hard to find jobs, the stock market is down, housing market is almost a joke and banks are closing, but what we need to remember is that we are a much richer society than we ever were in the 30’s.
There is almost no way our society today could ever get to where we were in the 30’s unless there was a complete collapse of the American Government. Today, we might have to go a few months without our direct TV, in the 30’s they went months without an income. Today we are producing things relatively cheaper than 80 years ago. Also another great difference between then and now, communication is so much faster. I can call or email anyone in the world, and it’s instant. People are not loading up everything they own into vans and driving around the country looking for jobs. We are so much wealthier now, that even our low class is rich compared to the low class of the 30’s.
Be thankful that we are not pulling our kids from school so they can work in factories. History repeats itself? Not quite. We are much better off than back then. Compare, contrast and learn from the 30’s, but what our grandparents and great grandparents went through was much more than we’ll ever know.
Constantly people are comparing this economic disaster with the ‘Great Depression’, but one thing needs to be clear. What we are going through now is nothing like the Great Depression of the 30’s. Yes, there are some similarities: It’s hard to find jobs, the stock market is down, housing market is almost a joke and banks are closing, but what we need to remember is that we are a much richer society than we ever were in the 30’s.
There is almost no way our society today could ever get to where we were in the 30’s unless there was a complete collapse of the American Government. Today, we might have to go a few months without our direct TV, in the 30’s they went months without an income. Today we are producing things relatively cheaper than 80 years ago. Also another great difference between then and now, communication is so much faster. I can call or email anyone in the world, and it’s instant. People are not loading up everything they own into vans and driving around the country looking for jobs. We are so much wealthier now, that even our low class is rich compared to the low class of the 30’s.
Be thankful that we are not pulling our kids from school so they can work in factories. History repeats itself? Not quite. We are much better off than back then. Compare, contrast and learn from the 30’s, but what our grandparents and great grandparents went through was much more than we’ll ever know.
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