Don’t hide from mistakes, learn from them! The Great Depression of the 1930s was caused by the deregulation of big banks and Wall Street. It lasted over 10 years and unemployment rates were over 20 percent.
Following the Depression, we had 70 years of heavy regulation. By 2000, virtually all protections had been torn down. Wall Street used its economic power to gain political and media power. It was not just deregulated, but almost entirely unregulated. Sadly, this was a bipartisan activity. It took just seven years of deregulation for Wall Street to cause a financial collapse, and almost a second Great Depression. The net worth of the median family declined 38.8 percent in just three years (from 2007-’10), wiping out more than $19 trillion in wealth.
Our government has had to spend crazy amounts of money to save Wall Street from itself, and to prevent us from spiraling into a depression. The Wall Street Reform and Consumer Protection Act, was signed into law in 2010. There’s talk of repeal.
We must make sure of two things: that banks and Wall Street be strictly regulated, and that we get corporate money out of politics.