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 ?
In: 0
The fundamental issue with the great depression was that there was no US Lender of Last Resort. Banks tried getting bailed out by Great Britain (who were in even worse shape), because that infrastructure had never been properly established in the States. That’s been addressed.
To the US’s credit, we have never economically failed the same way twice, mechanically soaking. We might deregulate ourselves into constant business cycles, but at least we learn from past ones. If we could just stop pouring trillions on fighting unwinnable insurgencies, things may yet turn out okay.
Latest Answers