Right Mills said that if people do not place themselves within the personal life opportunities of the trends of the times and the social class they belong to, they cannot understand their own experiences and determine their own destinies. A grain of sand from the era, when it falls on an individual, becomes a mountain. When the tide of the market economy recedes, in a world full of uncertainty, people begin to entertain the idea of grasping the last "lifeline," and the sense of security from having an "iron rice bowl" is becoming the most precious luxury of this era. Those who hold the "iron rice bowl" indicators become increasingly arrogant and complacent.
However, under a collapsed nest, how can there be intact eggs? If a "Great Depression" truly occurs, the "iron rice bowl" may also struggle to ensure food in the bowl. From the social phenomena during the "1929 Great Depression in the United States," it seems we can foresee the fears and hardships that the future path will face. The collapse of the national economy leads to a large number of workers losing job opportunities or having their wages reduced; in 1931, the unemployment rate in the United States reached 25%. "Unemployment" is the most significant characteristic of the Great Depression; the more precious the iron rice bowl, the more humble the job seekers, and the closer they are to the "Great Depression."
Social production exceeds demand, consumption is insufficient, the poor cannot afford to consume, the middle class dares not consume, and the wealthy flee, leading to an economic downward spiral. This is followed by stock market crashes and factory closures. The harsh economic environment drives a dramatic change in group mentality. Social credit is lost, loan defaults become the norm, landlords evict tenants who cannot pay rent, and many young people return to their extended families, relying on their parents. A large number of unemployed women fall into the category of fallen women, men no longer care about appearances, let alone talk about childbirth, and the social birth rate continues to decline.
At the same time, a counter-current in social development emerges. Reducing social interactions, much like how we today spend a lot of time lying at home scrolling through boring short videos, Americans at that time passed the time with cards, board games, and low-cost movies. Reverse urbanization occurs, returning to rural areas, and farming more meticulously to obtain food. Spiritual deprivation leads to a significant increase in mental illness, the prevalence of religion, and the emergence of charlatans and cults.
How does human economic society experience alternating prosperity and decline? Why does the bizarre specter of the "Great Depression" follow closely behind? From the prosperity of Coolidge after World War I to the "Black Thursday" of the stock market and then to the Great Depression of the Hoover era, ultimately leading to World War II. Some questions seem to remain unresolved for a century, such as "How does an industrial power solve the problems of overcapacity and consumption distribution?" Once upon a time, American workers existed like "cattle and horses," and under this "cattle and horse" spirit, America created 40% of the world's industrial output (China also created a miracle in 2023, accounting for 35%, leaping to become the world's largest industrial power).
However, the enormous pressure of production capacity and sluggish consumption keeps the shadow of economic crisis ever-present. Thus, Americans, in order to boost consumption, allowed the stock market to enhance residents' property income, ultimately forming a massive stock market bubble; they invented consumer loans and installment payments, creating irredeemable financial bad debts; large-scale infrastructure was built at the cost of hundreds of workers' lives, resulting in the famous "Hoover Dam." Ultimately, the Great Depression still arrived as expected; no one can defy economic laws.
Murray Rothbard, the chief theorist of the Austrian School, believes that the Great Depression was not caused by the government implementing "laissez-faire" policies, but rather by excessive government intervention. Economic crises are not an inevitable phenomenon of market economies but a general correction of the misguidance brought about by prior government intervention in the market. Rothbard attributes the American Great Depression to the adverse effects of government interference in the market during the Hoover era; he argues that it is not the failure of a liberal market economy, but rather that too much government intervention has made the market economy no longer market-oriented.
Those who do not forget the past will serve as a guide for the future. Although the American Great Depression is now history, scholars have been warning for years that "the world will face a Great Depression." Today, this warning is certainly not a case of groundless fear.