Eli5 what protects us from having another great depression? Is it even possible for us to get there or are their measures in place to stop that ?
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One of the causes of the Great Depression was too much money became isolated in too few hands. Really rich people can spend a lot of money but not the same way thousands and thousands of people do. Then there were no national welfare programs to distribute money from people who had it to people who didn’t. Fed income tax was only about 2 1/2 percent. There were no programs for unemployment, dust bowl disasters, or disability. If you had a houseful of children and your husband died you were expected to marry again, give the kids away or even drop them off near a church. Then the individual expected to take care of themselves, now people expect the government to take care of them in a crisis.
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