Great Depression Essay

Sonora McHan

Brother Johnson

FDAMF Section 17

November 22, 2011

Free Market during the Great Depression

            The Great Depression was NOT caused by a failure of the free market and it was not resolved by government intervention.  In fact government intervention actually worsened the Great Depression greatly.  In recessions of the past the free market recovered after a year or two, but because of government intervention the Great Depression lasted for a whole decade.

            In Great Myths of the Great Depression by Lawrence W. Reed it says, “The calamity that

began in 1929 lasted at least three times longer than any of the country’s previous depressions because the government compounded its initial errors with a series of additional and harmful interventions.” The economy would have recovered if the government would have stayed out of it. Capitalism is a good thing, the myth that the government saved our country from the Great Depression is outrageous.

            It is a myth that Herbert Hoover had a laissez-fair approach to the economy. When the Great Depression began, Hoover took action. “During the campaign, Roosevelt blasted Hoover for spending and taxing too much, boosting the national debt, choking off trade, and putting millions on the dole. He accused the president of reckless and extravagant spending” (Lawrence Reed).  Does that sound like a “hands off” approach to you? Me neither, Hoover was definitely involved in the economy and so was Roosevelt once he became President.

            It is also a myth that the stock market crash caused the Great Depression.  Brother Johnson said in class that, “The stock market crash did not cause the Great Depression. The stock market crash was the first time that people realized that our economy was in trouble.” The crash was just the beginning of the Great Depression, but it did not cause it.

            When Roosevelt was President he created the New Deal. The New Deal was unconstitutional, and based on Roosevelt’s view of government intervention when he was a governor, he believed deep down that it was unconstitutional as well.  “We didn’t admit it at the time, but practically the whole New Deal was extrapolated from programs the Hoover started” (Economist, Roosevelt Brain-Trust, Rexford Guy Tugwell). Of course they didn’t admit it! It would have damaged Roosevelt’s policies and in the long run his Presidency. Under the New Deal there were such things as the Emergency Banking Relief Act of 1933, The Economy Act, Agricultural Adjustment Act, Federal Securities Act, and many more.  All of these programs were implemented in the first 100 days of Roosevelt’s Presidency, and most if not all of them were detrimental to the economy.

            There are enough facts to fill at least 20 pages as to why the free market was definitely not a cause of the Great Depression and why government intervention was. I have named a few of the extremely important ones. If the government would have let the free market thrive on its own, the Great Depression would have never happened. I am sure that the Presidents Hoover and Roosevelt thought that they were saving the economy, but in reality they were putting it in a hangman’s noose. Today the economy is approaching what it was in the 1930s. Our Government is interfering with the economy. Not only is this not helping anything, it is unconstitutional. Government should not be a part of the economy at all.

Charter City Essay

Sonora McHan

Brother Johnson

November 8, 2011

American Foundations Section 17

Sunnyvale

            First of all if I were to create a city in some uninhabited part of the globe I would have to give it a name. If I were to name a city it would have to be named Sunnyvale. Sunnyvale would be on an island in the Pacific Ocean and everyone would want to live there because of the Free Market Economy and equal opportunity for everyone.

            The first thing that I would do after establishing Sunnyvale of course is write a constitution. The United States Constitution was absolutely instrumental in the economic growth of the United States. I would make sure that my constitution established freedoms and liberties, and that it stated that there would be no unfair taxation or seizing of property. I would have a constitution that made it possible for the economy to grow.

             In Brother Johnson’s paper, The Success of an Idea: American Economic Development, 1787-2010 he states, “As laws are enacted that infringe upon the right to property, a market economy is replaced by some other system. For this reason the free market economy can be appropriately labeled the private property order.” It is essential to have a Constitution so that there are not laws that are made that ruin the free market economy in Sunnyvale. “We believe that no government can exist in peace, except such laws are framed and held inviolate as will secure to each individual the free exercise of conscience, the right and control of property, and the protection of life.” (D&C 134 v. 2; see also 3 Nephi 3) The scriptures state that there must be a constitution and God inspired the scriptures so there MUST be a constitution in Sunnyvale.

            President Benson said, “A free market is the right to voluntary exchange of goods and services free from restraints and controls.” So Sunnyvale would have to be a free city, where people could exchange goods without worrying that the government would put an unfair tax on the goods. The government of Sunnyvale would also not be able to seize goods at will.  President Benson also said, “A free market survives on competition.” This is very true, there would have to be competition in Sunnyvale as well.

            In I Pencil it talks about the invisible hand, “In a market economy, when I act in my own self-interest I am guided by the invisible hand to act in the interest of others.” This statement indicates that we as a people do nothing because we “love” others; we do it because it will help us. But because we do things that will help us, we ultimately help others. The invisible hand would be very prevalent in Sunnyvale. The invisible hand would help guide the free market in Sunnyvale.

            In the movie Greed it asks, “Are business men evil?” In the film it answers this question it talks about how no one is forced to buy goods off of businessmen, and that dictators are much worse than businessmen because they take money by force. Businessmen do not take money; they earn it fair and square. The movie also talked about how Red Cross lifeguards are not as good as lifeguards who are trained by a profit organization. This is true because there is and incentive to work hard and be alert when there is someone watching you, and the Red Cross doesn’t watch its lifeguards, but profit organizations do. In Sunnyvale the companies would need to watch their employees to make sure that they are performing well, so that the company can progress economically. People slack off on work if they believe that they will not get caught and then even if they do get caught there will be no consequences, in Sunnyvale people would not behave in this manner.  They would know the consequences of inaction and therefore they would do what they were supposed to do to be able to help Sunnyvale grow.

            The movie on greed stated that, “Greed is not a bad thing as long as it helps the economy grow,” just because another person makes money does not mean that someone else is getting less money. Greed can be a good motivator in a free market economy as long as it doesn’t become too much, or too selfish.

            Marion G. Romney talks about the United Order in the general conference report, 1966. He defines it as “The United Order the Lord's program for eliminating the inequalities among men, is based upon the underlying concept that the earth and all things therein belong to the Lord and that men hold earthly possessions as stewards accountable to God.” In Sunnyvale, the people would live by the United Order so that everyone understood that Gad created everything that they have and that without Him they would have nothing. Sunnyvale would have a United Order because it makes having a free market so much easier. The United Order creates peace and harmony among people and that is how I would want my city of Sunnyvale to be.

            To recap, Sunnyvale would have a constitution, a free market economy, the invisible hand, the United Order, and of course a little bit of Greed. All of these components would combine together to make Sunnyvale a city of opportunity. People would come from everywhere just to be able to taste of this opportunity.