Financial Crisis – What caused our Pending Doom?

With the deadline for America’s pending financial doom on the horizon, Washington needs to revisit history fast.

There have been three periods in American history that ultimately brought this country to its knees: the “Progressive Age”, known as the “Gilded Age”, or the “First Industrial Revolution”, 1866- 1897, this period caused a financial crisis known as the “Great Panic of 1893”. The second period was the “Technology Era”, better known as “The Roaring Twenties” (1920’s) which sparked the “Crash of 1929” and ultimately caused the “Great Depression”. The Third; well according to Wall Street Analysis’s and Capitol Hill what is happening across America today, hasn’t fully materialized into a depression. Hey, I have a bridge to sell you real cheap if you really believe them.

Let’s start with the Progressive Age, better known as the Gilded Age created millionaires on the backs of the working class. Just as England’s Nobility created companies to capitalize on industry and trade throughout the 1700 and 1800’s, America’s Elite produced “Trusts” such as the Railroad Trust, Meatpacking Trust, Farming Trust, Manufacturing Trust, Steel Industry Trust and Financial Trusts that ultimately made them all millionaires. Because of these trusts, the steel industry out produced Britain, France and Germany making America the richest country in the world. The Railroad industry Trust skyrocketed, tripling its network throughout America between 1860-1880. Who were the men behind these various Trusts, rich industrialists of the era - Rockefeller, Mellon, Carnegie, Rogers, Morgan, Vanderbilt and Astor; each had a hand in creating the elite status every entrepreneur of today wishes to emulate.

These same men introduced the mechanization of industry. Machine driven production produced more products for sale faster than man could produce; this replaced skilled labor leaving many without jobs. Creativity became a thing of the past. While machines took over labor, the railroads created bureaucratic complex systems to control time and travel. Roles of management became the norm causing nepotism and who would receive a jobs. Mindset of business in general began to change.

With the increase in productivity rose in the industrial complex, patents were becoming more and more popular to safeguard person’s innovative creation. Over the course of a thirty year period, over 500,000 patents had been issued. Thomas Edison received a few of these patents for his electrical devices which lead him to co-found General Electric Company. With the creation of the telephone, Theodore Vail created American Telephone and Telegraph Company, better known as AT&T.

Individuals who once held jobs became angry and violent because they couldn’t’ feed their families. Union organizers began to stir the pot of discontent sparking two major strikes – 1870 workers demanded shorter hours and better wages; 1877 the Great Railroad Strike that lasted forty-five days and ended in violent attacks on property owned by the railroad conglomerate; 1886

While the first industrial revolution created the Gilded Age, the second industrial revolution lasted well into the 1920’s.

During President Grant’s term in office the phrase Lobbyist was created because those who wanted the ear of the President found him in the lobby of the Washington Hotel which is next to the White House, sipping his bourbon and smoking a cigar. It was during his time in office coupled with the reconstruction of the South that groups learned they could get what they wanted by lobbying his favor. Over the next twenty years, a sense of government favoritism became the norm throughout the political arena. It became more apparent in during the Gilded Age where bribes, kickbacks, inefficiency, waste and corruption gained larger voices in Washington, DC. Therefore, corruption and waste in politics isn’t a new phenomenon.

Each of the voices of the Trusts created a monopoly and exploited their employees. The Elite Wealthy Barons of the time helped perpetuate the establishment of unions throughout America causing further destruction and downfall of the American Dream.

Political wars between Republicans and Democrats isn’t a new phenomenon either, American history will show that it’s been going on since this time too. Voters were manipulated heavily during the 1870s. The political machine supporters who helped dominate the political field were rewarded for supporting the hand picked candidate. It was called “Patronage” back in the 1870’s where individuals were given favors back from the government once the candidate was elected. The candidate chosen had to agree to this form of support at the time and their willingness gained them tremendous support in return. If they didn’t agree, they were blackballed by the members of the industrial elite. Does this sound familiar? It should because it happens every day here in America.

Media was no better during this time; they resorted to “Yellow Journalism” and it took speed with negative reporting of political issues, a candidate’s stand on that issue and resorted to personal character attacks to diminish an opponent’s character. The media propaganda machine took on a new role of inflicting fear and unrest with their so called sentimental stories which ultimately were taken as fact, but were actually lacking in true facts. This still happens in today’s political arena.

With immigration on the rise with over 10 million coming to the United States for a better life from Europe and the United Kingdom, skilled craftsman and farmers who built our bridges and helped our farmers increase their production. The railroad industry needed skilled labor too, and over 64,000 come from China to build our railroads and railways, but they never got the credit for their hard work.

Inner cities swelled with these new inhabitants causing crime to increase and ethnic gangs formed which pitted each against each other even though they wanted the same thing – freedom, prosperity and a new life in America.

The Gilded Age also created many social movements: Susan B Anthony lead the Woman’s Suffrage Movement while religious temperance movement was born to bring morality back to America. Thanks to author Edward Bellany who wrote “Looking Backward” the birth of the socialist utopia was born. Bellany’s writing influenced Karl Marx and other socialist of the 20th and 21st century which has lead to the voice of the Gilded Age to reappear once again in 2011. Bellamy wasn’t the only socialist of his time, so was Laurence Gronlund who authored “The Cooperative Commonwealth: An Explosion of Modern Socialism” (1884). These two authors sparked Saul Alinsky’s teachings.

As the country came out of the 1800’s with a financial flourish, the Progressive Age continued with politicians such as Woodrow Wilson who believed in government controlling the lives of its people. As President, Woodrow Wilson established the income tax system to ensure the government had the necessary funds to pay off the war debt. The first tax revenue collection was enacted in 1913 at a rate of 7%. This wasn’t enough Wilson said to Congress, therefore, it was raised again in 1917, this time at a rate of 70%.

With the increase in tax collection, more innovative technology being introduced, World War I coming to a close, excessive gambling and speculation through the Stock Market and a mentality of “buy today, pay later” the “Roaring Twenties” was a decade of partying by the wealthy. Unfortunately, it wasn’t so bright for those who didn’t have their wealth.

The best example of this type of behavior occurred during the “Technology Era”. No I’m not talking about the nineteen eighties, I’m referring to the “Roaring Twenties” (1920’s) During the “Roaring Twenties” innovation became the new craze with new technology, such as automobiles, radios, and other goods that were in mass production for immediate purchase. The only problem was, this new technology was expensive, only those with wealth could afford it. There were other new innovations enhancing aviation technology and with the creation of the power grid system, people who could afford it stayed up all night partying. The “Roaring Twenties” became even more financially prosperous for the Industrial Moguls who gained power and wealth during the Gilded age of the 1880’s. They used their money to help start new corporations like Radio Corporation of America (RCA) and General Motors Corporation. They Silent film era became a thing of the past with the creation of talking movies and they invested heavily into this new industry. This new innovation allowed films to include sound, music and sound effects. Hollywood was born.

Traditional values were thrown out the window in order to break free of the bonds of social constraints.

With the right the vote, women became more empowered; raising skirts higher and higher, some throwing away their virtue while others got married and used their husbands paychecks to buy, buy, buy.

Then the Crash of 1929 hit and the world as we know it spiraled into despair. The Great Depression had started and lasted until the early 1940s. Those who had money and were affluent on Wall Street found themselves living in tent cities, squandering for food and a place to sleep. President Franklin Delano Roosevelt implemented the New Deal Act that brought social programs to the forefront of our nation. What most people in America don’t understand about the New Deal Act is this; the social programs established were supposed to be a temporary band-aid in order to help the people of America get back on their feet. Like everything in Washington, DC, these programs became political and more money was poured into the wound of a country for the next 65 years. Another thing America doesn’t know is that these very programs were copied from the socialist party programs throughout Europe. While FDR himself wasn’t a socialist sympathizer, his wife Eleanor certainly believed in their ideology.

The critical indicators that caused the first two stock market crashes and drove this country into despair are the same indicators sending us into an even more devastating depression. Washington needs to stop playing politics with the lives of Americans and prevent our financial doom from happening next week. Those who believe they understand the situation that is before us also need to relearn history, because they just don’t get what is truly at stake, American Lives! America needs to wake up fast and take control of this situation personally, individually and throughout the government. The gravy train of government spending must stop. Excessive trips that are not fiscally sound must be stopped. If Congress and Senate truly want to prove to the American people, they’re serious about protecting the American financial interest, cut out all the payback jobs that are truly unnecessary, like those special committee positions that do nothing to help the security of America. Instead of sending money to wealthy countries to help their starving citizens, use that money to help our fellow Americans stand on their own two feet once again. That would be a better return on investment for the future.

The question is simple, is Washington willing to gamble with the future of America, or will they learn from history?