There’s always something to howl about.

A Look past the hyperbole of “The Great Depression”

My Grandmother is 89. In 1929, she was 10, living in Duquesne, PA, a steel mill town not far from Pittsburgh.

Grandma is still a story teller, although Alzheimer’s has mixed up the palette of her recollections, which makes for some interesting mash ups. Before Grandma’s synapses got all Web 2.0, it was the Depression stories that fascinated me the most.

They were even better than the WWII stories, which were pretty good because she worked in an ammunition factory, but that’s a story for another crisis.

All of Grandma’s Depression stories, from the time a truck carrying oranges jackknifed on the road right before Christmas, to the beautiful indoor pool, gym and library that Carnegie built (where Aunt Emma secretly played basketball), to the truant officer chasing down Uncle Joe, all of them had a three-part moral:

  1. We were dirt poor.
  2. You don’t ever want to be that poor.
  3. Save your money just in case anything like that happens again.

As I got older, I started to understand how being a “Child of the Depression” had molded my Grandmother. The bargain shopping. Walking across the parking lot of the A&P stooped over not because of age, but because she was looking for dropped change. The look of disbelief Christmas morning when my brother and I sat in a pile of un-boxed toys surrounded by shreds of wrapping paper a foot thick, looking for more.

The lingering impact that living through the Depression had on my Grandmother used to interest me as an exercise of amateur psychology, a topic I’d toss around with my parents to show them they got something for the four years I spent doing keg-stands at URI: She was conditioned. Using a tea bag twice is a mild sort of PTSD. Aren’t I clever?

I don’t feel so clever, now. Now I’m recalling Grandma’s somewhat more reliable pre-Alzheiner’s stories looking for tips, or hope, or something…She did always say, poor as they were, they were happy. That’s something, right?

This morning a friend forwarded me a link to something that is on the Wikkipedia page for The Great Depression, a page that probably has gotten more traffic in the last two weeks than it ever has.

There is a section called “Inequality of Wealth and Income”, and I know the title alone already has the Republicans wishing they hadn’t read this far, but its a fascinating read no matter where you come down on the ideological spectrum or on the the bailout that is being decided as I write this.

The whole section consists of an excerpt from the memoirs of Marriner S. Eccles, who served as FDR’s Fed Chairman. Here’s a snip, if you see the resonance, click through to the rest and see if you, like me, wonder how we managed to forget these lessons within my Grandmother’s lifetime:

“…a giant suction pump had by 1929-30 drawn into a few hands an increasing portion of currently produced wealth. This served them as capital accumulations. But by taking purchasing power out of the hands of mass consumers, the savers denied to themselves the kind of effective demand for their products that would justify a reinvestment of their capital accumulations in new plants. In consequence, as in a poker game where the chips were concentrated in fewer and fewer hands, the other fellows could stay in the game only by borrowing. When their credit ran out, the game stopped.”

The rest is here.