Can We Compare 1929 With What We Experienced?

[charles brough]

I noticed charts that show that the extreme of wealth and poverty that we experience now also existed in 1929. It spiked then, and began to fall as the stock market went down.

 

Deflation seems to deflate the moneyed class!

 

Will that happen with us?

[LaurieAG]

Hi Charles,

 

I noticed charts that show that the extreme of wealth and poverty that we experience now also existed in 1929. It spiked then, and began to fall as the stock market went down.

 

Deflation seems to deflate the moneyed class!

 

Will that happen with us?

 

Not quite, if you look at http://www.voxeu.org/index.php?q=node/2877

you will see that, compared with 1929, the unemployment rate halved while the loss in house prices doubled.

 

This did happen to home owners while the moneyed classes got even wealthier. Money might not buy you happiness but it will pay to lobby/buy politicians of any political persuasion.