All posts tagged Great Depression

Book Review The General Theory Of Employment Interest And Money by John Maynard Keynes

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It seems that most editorials about John Maynard Keynes are have an tremendous political slant and are generally done by those who have never even read this book. Primarily they are against his core conclusion that broadened government participation is required in the economy for stabilization functions. The key to comprehending Keynes is the idea that at unique times in the business cycle, an economy can become over-productive (or under-consumptive) and consequently, an agressive spiral is started that results in considerable layoffs and cuts in production as businesses try to balance aggregate supply and demand.

Thus, full employment is simply one of several or multiple macro equilibria. If an economy reaches an underemployment equilibrium, something is necessary to enhance or spark demand to generate full employment. This something could possibly be business investment but The General Theory Of Employment states because of the logic and unique characteristics of investment choices, it is less likely to rapidly reestablish full employment.

Keynes logically seizes upon the public budget and government expenditures as the shortest way to restore full employment. Borrowing the money to fund the deficit from private households and businesses is a fast, direct approach to restore full employment while at the same time, redirecting or transfering off the funds from the private sector which prompted the over-production in the first place. This book is essential to understand modern economics.

There are many things The General Theory Of Employment and Keynes was right about as well as completely wrong about. However, understanding his perspective is important when weighing alternative viewpoints. It is also important to compare his ideas with the actions of governments. You will at times see massive deviations from his theory into areas that he never suported to such extent that he wrote an open letter to FDR protesting his actions while trying to recover from the Great Depression.

About the Author: Walter provides over a decade of market information, economic knowledge and other great book reviews on his website http://bidhitter.com.

Copyright 2010 BIDHITTER

History Of The Trucking Industry

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The trucking industry as we know it, began at the turn of the twentieth century with the invention of the motorized truck. Motorized vehicles were competition for the railroad industry and became a major factor in the increase of land transportation of goods throughout the United States. The development of fuel also contributed to the increased use of trucks. As motor technology advanced and improved, there was a natural progression for the construction of paved roads. As a result, there were regulations set by the state and federal government that were to be adhered to when moving freight.

Prior to the use of trucks, trains were the most efficient mode of transporting goods because it had the capacity to accommodate bulk. Trucks were initially used to deliver items to remote locations that were inaccessible for the train. The first boom in the usage of trucks occurred during the 1920s. At this time, roads were improving and made delivery locations more accessible. Eventually more durable tires replaced the rubber tires and trucks were made larger in order to carry more goods while providing comfort to the driver.

The first trucks were extremely heavy and had crude mechanisms. Initially they were only providing delivery and hauling to the city. This restriction was due in large part because the trucks could not handle the pothole and unpaved roads. The Automobile Club of America put on the very first United States contest for commercial vehicles; the goal of the test was to examine the reliability, speed and capacity of the truck. Excited by the results of the contest, manufacturers were to meet the demand for trucks and the use of trucks for freight transportation flourished.

The trucking industry as we know it was still in its infancy when the Great Depression hit and a number of trucking companies were forced to close their operations. The companies who survived were able to benefit from the repeal of Prohibition, which also occurred during a time of economic recovery. In 1935, Congress passed the Motor Carrier Act; this act halted the legislative mudslinging between the rail and automotive providers and provided structure for the industry. At that time, the federal government became an investor into the railroad industry, which happened to have also from the depression, as well as from the emerging auto transport industry.

The Motor Carrier Act set regulations for freight-hauling. The act limited the hours that could be driven. It also mandated the classification of freight that could be carried. The owners of the trucking companies became concerned that the new regulations would compromise their competitive advantage over established rail companies. As infrastructures were improved, driver demand increased and opened up opportunity for new businesses to enter the market.

The trucking industry is a key player in the American economy through the transportation of raw materials, produce, and finished goods. Trucks are also vital to the construction industry when large amounts of materials are needed for a project. Currently, the American trucking industry is responsible for most of the movement of freight and will continue to be essential for US manufacturing and construction.

Under the regulation of ICC, companies who have for-hire trucks were required to apply for a license if they wanted like to enter the interstate markets. The guidelines were strict and licenses were granted only if it could be proven that there was a need for additional capacity. The rates, which used to be an agreement between the trucker and the customer, were put in the hands of bureaus. The rate bureaus are owned and administered by participating carriers. The bureaus job is to analyze costs and initiate pricing standards and competitive rates within the industry. In 1980, Congress put through a trucking deregulation bill. The goal of the bill was to increase competition and this competition resulted in reduced shipping costs for customers.

Prior to 1983, truck size and weight limitations were set by individual states. The federal government pushed for legislation that set limitations on the interstate highway system. In addition to increasing the size and weight limitations on truck, the law also resulted in an increase of the national gas tax and increased fees on the industry. Currently, the trucking industry is responsible for paying roughly half of all state and federal road user taxes.

Inspirational tale could generate sales of used Toyota models in New Jersey

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Used Toyota models in New Jersey could start attracting more attention after Wednesday’s human interest story on the Today Show.

On August 12, 2000, Tillie Tooter, now age 93, was on her way to Fort Lauderdale airport to pick up her granddaughter when she was rear-ended, sailing her Toyota Tercel 40 feet down an embankment into a nearby mangrove swamp.

Tooter spent the next 72 hours as a castaway, trapped in her car, praying to be found before the elements took their toll on her 83-year-old body.

The octogenarian survived on food rations that consisted of a stick of gum, a cough drop and a piece of peppermint candy. She used a pair of socks to absorb rainwater and would draw out the moisture to remain hydrated.

After spending nearly three days in the snake-infested swamp, Tooter felt resigned to her fate. “I made my peace with God,” she recalled on the show. “I felt repentant for anything I may have done to hurt anybody, and glad for the things that I did that were good.”

Tooter’s nightmare finally came to an end when a local teenager, who she affectionately calls “my angel,” spotted her car while he walked along the highway. She was soon rescued by paramedics and was back on her feet in just a few days.

When a friend was asked why Tooter’s story is still being told nearly a decade after it occurred, she responded with a question of her own.

“How many Tillie Tooter’s have come along in the last nine years?” she asked. “She’s terrific; she’s one of a kind.”

As for Tooter, she says the experience hasn’t changed her a bit. The Brooklyn native was raised to handle the most menacing of circumstances.

Tooter began working at the age of 13 as her family struggled through the Great Depression. She also raised a four-generation family on her own after her husband passed away during the D-Day invasion in 1944.

She now spends her time traveling around the south Florida area, speaking at retirement homes to inspire people to live life to the fullest.

“Every minute counts,” she told WPLG Local News in Miami. “Take whatever you can out of this life. Every bit of joy and every bit of pleasure and give as much as you can.”

Florida’s Department of Highway Safety and Motor Vehicles reports that there were approximately 246,000 car crashes in 2000 resulting in nearly 232,000 injuries.

Tillie Tooter’s harrowing ordeal could benefit sales of used Toyota models in New Jersey