Tapsearch Com EditorTrade was not the cause of the Depression
By Ray Tapajna from Trade Traps
Why do our economists and major news channels keep saying protectionism was the cause of the Great Depression. Why do they advoid talking about free trade today as the major cause of our economic crisis. It is an major economic ethics problem of our times.
During the "roaring prosperity"1920s, there was all sorts of trade agreements. Many were tariff free. Then the stock market crashed in 1929. It was based on the collapse of our money systems and investments and not trade. It was all about money as it is today. Today so called free trade has proved to be a complete failure that caused the degradation of workers' value. This represents the lost of trillions of dollars in lost money values. Our economies based on making money on money instead of making things are burning out.
The value of workers and labor is a real asset and a real money standard. Historically, it was rare to move factories and production outside of a country and call it trade.
The Smoot-Hawley trade act that is also blamed for the Great Depression was passed in 1930 a year after the stock crash. The pundits claim the trade act fostered protectionism It really never took effect because of the lack of money worldwide. President Roosevelt became president in 1932. Congress passed the 1934 trade agreement that allowed Roosevelt to lower or raise tariffs at will. The winds of war were blowing. There was very little trade to even talk about.
In this worldwide depression there was hardly any money to support much of anything including new wars. President Roosevelt said he was not going to let the lack of dollars stand in his way. This points to the fact that money and not trade was the main issue of that time. Roosevelt launched the Lend Lease Act which played the key in creating the most awesome industrial and agricultural economy in history. He sent our allies goods without worrying about payment.
Roosevelt said, "Now, what I am trying to do is to eliminate the dollar sign". This in itself proved the Great Depression was about the lack of money worldwide not "protectionism". The American people were enticed into supporting the war efforts of our allies for the sake of good paying jobs. It had nothing to do with reciprocal trade.
A 1950 army officers military manual says, " The Lend Lease Act embodied the most important new national policy adopted during this period". And this was a one way deal to supply our allies with goods to support their war efforts. ( Alan Greenspan does not even mention much about Lend Lease in his book The Age of Turbulence.)
Lend Lease proved that you can not do business with people who do not have money. It proved you need to first find money to conduct business on either side of any deal. Roosevelt created an vast economy based on a war effort by mortgaging future generations. The government is doing much of the same thing today.
We now have more than a fifteen year history of free trade failures with continous trade deficits. This means we take in more products from others than we sell to them. It has been a losing proposition for many years compared to the so called "protectionism" of about only a year or two during the 1930s. The manipulation of money products have always been the main problem and not trade.
( Our most popular ezine article on the internet - Lend Lease was Real Free Trade and not Chop Liver as in the Globalist World - is at Lend Lease Article - ( free to copy to your blogs or sites. ) and see also the untold stories behind the news at Untold stories behind the news ) Shoppers are shopping their way out of their jobs as major newspaper writers are writing themselves out of their jobs. All ignore the fact that free trade is the cause of our current crisis with all the new money products and investments not there to fill the voids.
Why do our economists and major news channels keep saying protectionism was the cause of the Great Depression. Why do they advoid talking about free trade today as the major cause of our economic crisis. It is an major economic ethics problem of our times.
During the "roaring prosperity"1920s, there was all sorts of trade agreements. Many were tariff free. Then the stock market crashed in 1929. It was based on the collapse of our money systems and investments and not trade. It was all about money as it is today. Today so called free trade has proved to be a complete failure that caused the degradation of workers' value. This represents the lost of trillions of dollars in lost money values. Our economies based on making money on money instead of making things are burning out.
The value of workers and labor is a real asset and a real money standard. Historically, it was rare to move factories and production outside of a country and call it trade.
The Smoot-Hawley trade act that is also blamed for the Great Depression was passed in 1930 a year after the stock crash. The pundits claim the trade act fostered protectionism It really never took effect because of the lack of money worldwide. President Roosevelt became president in 1932. Congress passed the 1934 trade agreement that allowed Roosevelt to lower or raise tariffs at will. The winds of war were blowing. There was very little trade to even talk about.
In this worldwide depression there was hardly any money to support much of anything including new wars. President Roosevelt said he was not going to let the lack of dollars stand in his way. This points to the fact that money and not trade was the main issue of that time. Roosevelt launched the Lend Lease Act which played the key in creating the most awesome industrial and agricultural economy in history. He sent our allies goods without worrying about payment.
Roosevelt said, "Now, what I am trying to do is to eliminate the dollar sign". This in itself proved the Great Depression was about the lack of money worldwide not "protectionism". The American people were enticed into supporting the war efforts of our allies for the sake of good paying jobs. It had nothing to do with reciprocal trade.
A 1950 army officers military manual says, " The Lend Lease Act embodied the most important new national policy adopted during this period". And this was a one way deal to supply our allies with goods to support their war efforts. ( Alan Greenspan does not even mention much about Lend Lease in his book The Age of Turbulence.)
Lend Lease proved that you can not do business with people who do not have money. It proved you need to first find money to conduct business on either side of any deal. Roosevelt created an vast economy based on a war effort by mortgaging future generations. The government is doing much of the same thing today.
We now have more than a fifteen year history of free trade failures with continous trade deficits. This means we take in more products from others than we sell to them. It has been a losing proposition for many years compared to the so called "protectionism" of about only a year or two during the 1930s. The manipulation of money products have always been the main problem and not trade.
( Our most popular ezine article on the internet - Lend Lease was Real Free Trade and not Chop Liver as in the Globalist World - is at Lend Lease Article - ( free to copy to your blogs or sites. ) and see also the untold stories behind the news at Untold stories behind the news ) Shoppers are shopping their way out of their jobs as major newspaper writers are writing themselves out of their jobs. All ignore the fact that free trade is the cause of our current crisis with all the new money products and investments not there to fill the voids.
