Milton Friedmann studied the 29-32 period, and the conclusion he drew from there was
this : to have come out of the depression quicker, they should have implemented a
policy of expansion, i.e. economic expansion, creation of jobs and enterprises.
Coupled with broadcasting positive news to give courage to the people, this policy
helped pull the U.S. and the world out of doldrums in those days.
The lessons drawn from that period, when applied with discretion, bring fruitful
results, witness the policies of Fed Chairman Ben Bernanke,who is also a scholar
of that period. The U.S. has started to make steady headway in their economy.
Growth is the only way, so the productive workforce can be busy, and the nations
can earn some business by exporting overseas, where there are huge hungry markets,
in Asia, Africa, South and Central America, and also of course in the mature economies.
I believe there is great hope for the Eurozone; they have to put in the effort and roll
out the Red Carpet, together with a dynamic plan of growth in Europe and overseas,
and creation of trading partnerships which will open up the world.
Only a few weeks ago Dr. Zoellick of the World Bank said there is no fear of a
double dip. The European leaders must show the power of will tomorrow,
to show that a policy of expansion will be followed, creating many jobs and
much enterprise. We must not again go through the avoidable pain of having
a recession in the midst of plenty.
Kind regards ,