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Wednesday, February 25, 2009

Why This Depression Will Likely Be Longer and More Devastating Then The Great Depression

In the great depression of the 1930' there wasnt an infusion of government aid for key industries like banking that were severly hurt by the downturn. And many of these companies failed during the depression. But as the storm subsided they were replaced by new companies with new managers who had fresh ideas and better business practices then the companies that went under. The direct aid that is now going to the banks and automobile industry is subsidizing bad managers and bad business practices. How is Gm helped by giving moveny to its present management team led by Butch "Dog Face" Wagoner? In the great depression someone like Wagoner would have been trashed quickley. But with the new government welfare packages for distressed businesses and excutives like Wagoner this depression could go on a long time. Let Darwinism rule and let the strong survive. This isnt to say that there shouldnt be aide to important industries. However the aid shouldnt subsidize bad business practices and poor managers like a Rick Wagoner. Gm and Chrysler must be nationalized. When the Little Three becomes the Big 3 again that will be the sign that this economic huricane is over with.