Your "hope springs eternal" analogy is admirable but history isn't always the leading indicator of the future. One metric is the enormity of our aquired debt which has to be responded to in the form of "forgiveness" or as an instrument of incoming higher collosal tax payments. The debt during FDR's stint was in relative billions & well within the reach of being paid back through a growing GDP. Our debt now dwarfs our means of restitution in a "shrinking" economy with nothing but spending on the horizon. Unless our economy rebounds in a very large way our ability to even pay the interest on indebtedness will bury us even more. Our past history does not account for modern day debt standards,, it's a new beast. The beast is growing & growing & growing....

Re. your comment.....'intially they came from England...!' What about Scotland? England, technically, ceased to exist in 1603 when James VI of Scotland ascended Elizabeth's vacated throne and became King of Great Britain as James VI and I. Afterwards came Ireland and the United Kingdom was born.

And being an economist, what about Adam Smith and whwere he came from?

Tsk, tsk.

Giving more tax cuts to corporations won't create jobs per se. Companies hire because demand is there and they need workers. If those conditions don't exist, the tax breaks won't go to hiring, no matter what. Meanwhile, wage earners pay far higher tax rates than paid by shareholders on capital gains and dividend income. If there's money available for more tax cuts, those cuts should go to workers, not investors.

You don't have to be a student of history to see the train wreck coming. The American capitalist system is broken, America is out of money, and the Fed sure doesn't care about the coming collapse of the dollar. The government is trying to re-inflate a bubble which now has more holes in it than swiss cheese. No company or bank should ever, ever be bailed out. You're right when you said that no other country is like ours on so many levels but that isn't really a good thing. Charles Manson was also unlike other people on so many levels. And if you think America is the greatest country on Earth, than you need to travel more. America might have been the strongest and most powerful country in the world but that will be quickly changing. The hopes and dreams of Americans are being crushed (if they haven't been already). As much as I love America, I moved out and I suggest that other Americans do the same because when the dust settles, The USA is going to be the only country down for the count. The Bush Administration and the Fed has broken our country beyond repair. If you think the past year was rough, wait till 2009 is over. When one is driving a car or even simply going from one point to another, it's always better to look ahead rather than behind. Hey! This is America, run for your life because nothing in history can be compared to the nightmare that's is here and will be coming!

Um, NAFTA, GATT and other trade agreements kind of put the last nail in the coffin. After the last Recession of the early 80's there still were many jobs to go back to after inflation was squeezed out of the economy. Now there is lots of debt and far less means to pay it off. No jobs left, and deflation is a far cry from the last deep recession of the early 80's. How can investing for profit and growth be that invigerating. This is global in scope, and far reaching. There is consumer demand but no means to pay for the goods.

mike my company builds new homes in mass and we sold 8 new homes last year alone go figure. we already have 2 of the 4 we are building under agreement for feb and mar sales dates. i alredy have to find more land to keep going through the year. 2009 is the year we start the comeback. this time next year we will be back on track and flouishing again. i believe barack will take us to new heights. this time when it comes back you'll never see these opportunities again ever. he who hesitates loses !!!!!!!!

Right on Dude!!!!!!!!!!!!!!!!!!

Allrich is a genius, history in fact does repeat itself. The doomsdayers are the only thing bringing down the economy. 2009 will in fact be better. As Allrich says, his critics should do a little more studying before they decide the fate of all. They speak only for themselves. If they want to remain in gloomy isolation, as for me, time to buy buy buy.......

Bush is spending just like Hoover, and it appears Obama will double-down just like FDR. At one point under FDR, the tax rate for those making $25000 or more, was 100%. We went thru 12 years of the GREAT DEPRESSION, but it was WWII that got us back on track. Brother, can you spare a dime???

I think the answer for the future of the United States lies somewhere in between the worst case and a new brighter future. Things have been bad at different times and this time things certainly look pretty bad, however there is an untold matrix of directions this country can go. In order to remain competitive in the world we need something to sell the world that it is willing to buy. We cannot ship off the manufacturing to China and expect to profit from the exercise. We do not have many natural resources to exploit such as oil for export so for the time we have left we need to consider how best to change the current plan to accomodate the future. Worst case is 40% of the population farming to feed the world. Gross margins will be minimal but it will allow at least to feed the domestic population. Transportation will need to be electrified. Not necessarily cars but trains to transport the food to the cities. As the cost of energy increases the development and manufacture of cheap electrical appliances (solar panels, etc) will be a possible export or domestic product. If oil runs out of becomes too expensive, forget exporting too much stuff and focus on domestic needs. Now what will the average American do for money? Not sure, perhaps farm and manufacture solar panels. That is for the natural business cycle to decide and balance. Can this all be done? I don't know, but sure hope so for the sake of my children and grandchildren.

DON- I think you are mistaken. Corporations pass on expenses like taxes, etc. onto the consumers that buy their products (you & me). We need to eliminate taxes on corporations & business. When prices of the products don't skyrocket, people will buy more & create demand & more jobs.
America is still a nation of the strong & working together WE generate prosperity.....alfredschrader@aol.com

Yes, the good ol' US of A is one of a kind, but it has lost it's way in the past few decades. Consequently, our current mess. Taking government support, personal and corporate, used to be a embarrassment. Now it's the accepted driver for the entire economy and the NYSE. Yet, even in the face of more and more "chickens coming home to roost", we've elected an administration that only promises an expansion of these failed policies. Sooner or later, probably sooner, somethings gotta give. Is it too late to change? Maybe not. But, in my opinion, critical mass isn't too far away.

Times have changed since FDR was around. American companies were not out sourcing jobs to other countries and half of the american companies are now owned by foreign investors. The United States government didn't owe Trillions to China. Our ports were run by american companies but now are owned by China. Things are not as rosy as they seem.

So many issues.
You must produce more than you consume to grow.
People must have money to buy.
too much friviolus stuff to buy.
World over population.
something is wrong when money people can make money whether stocks go up, dow or stay static. All the people in the world forget who helped them. be it diaster recovery or finding thier oil and helping them out of tents in the deserts to a completly supported society. Worse are the countries that kept the wealth for the few despots in charge.

Sometimes chicken little is right. When fannie mae and freddie mac start the forclosures again, when the us runs out excuses for injecting money against the taxpayers wishes into wall street and the stock exchange, when the unemployment rate hits 8% - it will seem like the sky is falling for most of america.

compassion is the worlds richest energy source.guide yourself forward spending your resourcesses heart felt wisely your returns will land in your lap beyond your belief trust and this will happen for you !

Like most Americans my ancestors came from the U.K.My Father's people came to North America in 1635 . My Mother's came from Scotland and Ireland in 1700. People like my ancestors made this country. It is not perfect, no country is, but we are a hell of a lot better than the rest of the world. Yhis is truely the Land of Oppurtunity.

Al Schrader is absolutely correct !

WPA was the Works Progress Administration, not Works Project Administration. I'm not one to nit-pick, but your column is the third time I've seen this mistake.

On a humorous note, the WPA was also referred to as We Piddle Around, due to the make-work nature of the program.

jmjmosley,

Don't you just love it when the new third world immigrants come in- legally or not- and claim equal credit with our ancestors for building the USA ?
Don't you love it even more when the politicians agree with this lie to get their votes?
And if you don't agree, it makes you a racist?