The great depression was not caused by the failure of the free market. The invisible hand will always pull an economy out of the dumps if it is left alone. The great depression would have ended much sooner if the federal government if they had left it alone. But as we can see today, the government has a difficult time sanding by and waiting for the invisible hand to sort things out, and therefore creates more problems than there were originally.
One of the first mistakes of the government was to put into action the Expansionary Monetary Policy that created fake low interest rates.By trying to expand the economy, this actually overheated the stock market. This decreased the money supply into the economy; because of the low money supply, people were much less likely to spend their money. When people are spending money the economy gets stronger. We see the opposite here, and the economy weakened.
Then the government enacted The Smoot Hawley tariff in the 1930’s, which placed a high tax on imported goods. This tariff kept a lot of trading from occurring, and instead of stimulating the economy it helped to weaken it. By this time America was deep into the depression, the government again would not leave the economy alone. They created the National recovery act of 1933 and the Wagner Act 1935. These were anti business and pro labor regulations that were controlled by the federal government. This also helped to weaken the economy, because when the businesses are suffering the people are as well. Because the businesses were doing badly, that means less jobs for the people as well as they could not create products that the people could purchase to help stimulate the economy. This again kept money from flowing into the economy.
High wage policies enacted by Hoover and Roosevelt kept businesses from hiring and decreased the amount of jobs that were available to the people.
The great depression may have happened whether the government had intervened or not. But the great depression would not have been so terrible if the government had not intervened.
There are several things necessary to create a society where there would be economic prosperity.Some of the most vital things to a prosperous economy are technology, property rights, and the invisible hand.
If we are to prosper we have to improve constantly. We need people who can think outside the box, and improve the way that society does things. If there is not new creation, improved machinery, then the economy will slow and become stagnant and fall into monotonous routines. We need to create things that increase jobs and pay. David O McKay said, “we must strive for more fertile acres; bring from the mountains gold and silver in abundance; found factories to furnish more employment; extend in length and width our concrete public high-ways; build banks to protect, or to dissipate, as has been the case recently, the wealth we accumulate; transform our vast coal fields into electricity that will furnish light, heat and power to every family”. He made it clear that we need take all aspects of our lives and make them better, as efficient as possible. To have economic growth labor productivity must be improved, through technology we must find ways to increase the amount of products while using less resources.
We need freedom, a constitution, and a government.There needs to e an institution that protects the rights of freedom. Even in a uninhabited part of the planet, there needs to be set boundaries; boundaries that protect the liberty and property of the individual. If there are not these restrictions there cannot be a flourishing economy. The more freedom that a the individual has the more power they will have to act in self interest, which will then in return benefit the entire society. “We believe that no government can exist in peace, except such laws are framed and held inviolate as will secure to each individual the free exercise of conscience, the right and control of property, and the protection of life” (D&C 134:2).
Another vital part of a successful economy is the invisible hand and a market economy. In the free-market people have the right to benefit from private enterprise and profit; people are able to voluntarily exchange goods and services, without restraints and controls. In the free market the self-interest of one person benefits all. This is what the invisible hand is. Problems begin to occur when the government-instead of protecting the people’s rights as it should- tries to take care of the economy instead of letting the invisible hand to balance it all out. Leonard E. Read “There is a fact still more astounding: the absence of a master mind, of anyone dictating or forcibly directing these countless actions which bring me into being. No trace of such a person can be found. Instead, we find the Invisible Hand at work…Leave all creative energies uninhibited. Merely organize society to act in harmony with this lesson. Let society’s legal apparatus remove all obstacles the best it can. Permit these creative know-hows freely to flow. Have faith that free men and women will respond to the Invisible Hand”.
James Madison realized that the real difficulty in government is not governing the people; rather it is governing the government. We read in D&C 121:39, “almost all men, as soon as they get a little authority, as they suppose, … will immediately begin to exercise unrighteous dominion.” This is the problem with government that it put some men in a position to rule over others and this can sometimes lead to wicked greedy rulers. James Madison wrote in Federalist 51 some ways that we can keep our leaders from becoming tyrants, such as the best way to appoint members, keeping departments as independent as possible, division and separation of powers, and keep any factions from gaining the majority of power.Madison first writes about how to appoint members, he believes that members in each department should have as little authority in selecting people for positions as possible. In Federalist 51 he says, “It is evident that each department should have a will of its own; and consequently should be so constituted that the members of each should have as little agency as possible in the appointment of the members of the others”. He believed if some members had the power to appoint others to power, it could create a corrupt government. As humans we are often selfish, when a member is given the power to appoint, he is put in a situation that he can get gain from giving someone that position, or force a person to do as they wish them too because of the position that the person gave to them. Madison understood that people could get greedy, and tried to set up a government in which, as many members as possible are free from bribes and blackmail. He says that in an ideal situation the people would vote for every position, although he admits that it would be impossible to have the people vote on every single leader.
He goes on to say how every department should be as independent as possible; he says, “The members of each department should be as little dependent as possible on those of the others”. If they depend too much on each other it runs the risk that departments could collaborate, and get more power than the would otherwise have. The ruler of each department should protect the department from encroachment.
The government is protected from usurpation by the division and separation of government. Thus keeping any part of the government from gaining too much control and impeding on the justice of the people. This is apparent in the distinction between federal and state government, and also with the branches of government. The different parts of government control each other and thus keep each other in check. For example, the states get all the power that is not explicitly stated in the constitution. This keeps the National government from having too much control, and keeps the government closer to the people. Another example of this is the president’s vetoing power, and the congress overriding power. So even at the national level there are checks and balances. Also the legislative and law-making branch has two houses to check each other. His policy on factions is the more the merrier. The more factions that there are the less opportunity that any one group will take complete power and steal the power of others.
There is no doubt that God freed this country, despite the odds our country gained freedom. The constitution is the symbol of our freedom, obviously if God took interest in freeing our country he would also be very interested in preserving our country’s freedom. Our constitution was inspired, because it was written by inspired men that God put into place at that time. God needed a free country, a country that he could restore his word. Then, he has preserved this free land so that we can more easily spread his word. He had been setting things in place for years to bring to pass his purposes, such as the printing of the bible, the revolutionary war. Through this free Country God restored the gospel to prepare for the second coming. In Doctrine and Covenants 101:77 the Lord says “According to the laws and constitution of the people, which I have suffered to be established, and should be maintained for the rights and protection of all flesh, according to just and holy principles”. The Lord discusses his reasons for bring to pass the independence of America, and also in the creation of the constitution, saying that it happened in order to maintain and protect our rights, according to his just and holy principles.
The constitution is an inspired document because it is based in just and holy principles. When this document is put into action, it frees man. It keeps the government or any man from gaining power over another. It states the rights that man are given from God, and best of all it is not simply a document for Americans, it applies to all men. Through this document we see many gospel principles. For example, all men are equal to God, that we have the agency to make our own decisions, and that the individual is important.
The constitution was written by inspired men, men that God prepared for this time. Benjamin Franklin asked for a prayer before the constitution, proving that the founding fathers acknowledged the hand of God in their work. The Lord said “And for this purpose have I established the Constitution of this land, by the hands of wise men whom I raised up unto this very purpose, and redeemed the land by the shedding of blood” (Doctrine and Covenants 101:79-80). These were man that obviously cared for the rights of others. Many of them had proved this by drafting the Declaration of Independence and pledging their lives, fortunes and sacred honor, for the sake of others rights. Everything in the constitution was carefully looked at to make sure that it would have a positive effect on future generations.These were good men that were responsive to the light of Christ within them. They were humbled by the fact that they had to create a document that would protect freedom for a long time, and therefore were humble enough to receive the inspiration of the Holy Ghost. An important principle in the gospel is agency, which is a prevalent subject in the Constitution. With the constitution men are more liable for their sins. In Doctrine and Covenants 101:78-89, the Lord says “according to the moral agency which I have given unto him, that every man may be accountable for his own sins in the day of judgment. Therefore, it is not right that any man should be in bondage one to another”. We see the inspired message of agency throughout the Constitution with the idea of the importance of the protecting of our rights. If our rights are protected, then so is our agency.
The idea of a democracy was an inspired thought. It was an entirely new idea, but in this way God was able to rid this Nation of anarchy and therefore made himself the ruler of our nation. We know from the Old Testament that when the Israelites let God be their King, everything worked out very well for them, but when they wanted a human king, they began having problems. Through our democratic system, we make God our King. Which as members of the church we know that having God as our ruler is definitely a positive, because he is a perfect and just ruler.
The constitution was inspired, because it is based on good and eternal principles, which protect citizens and their rights. Also because the men that wrote it were good men, that God prepared to create and protect freedom. Best of all, we know that it was inspired, because it has been tried time and time again, and it continues to protect our freedoms today.
When we think of the founding Fathers, we think of true Americans. We often forget that they were really, loyal British citizens who loved their country, but wanted their voices heard, and their rights respected. Most colonists didn’t want to break away from their mother country, but Britain pushed and pushed until the Founding Fathers felt that it was necessary to declare independence. The American colonies were completely justified in their actions in their rebellion against the British Empire. Their government violated their natural rights including their life liberty, and property. Also violated Natural laws, precedent, as well as getting too involved in the economic system, to the point of hindering economic progress. When any government is not respecting the rights of its citizens, it is necessary to throw off that administration. The Founding Fathers only did what was right for themselves, their families, and the future generations.
The first reason that the colonists were justified was because the British Government did not respect their natural rights. The primary right being life was violated at the Boston Massacre. Although, there was a mob that was messing with some soldiers, shooting eleven people was unnecessary, and thus stole the right to life from five people. The second of the natural rights is the right to liberty. King George like a sickness stole the voice of the people. He appointed jurors, changing the leaders from someone in the defense of the colonist to someone completely loyal to the king. Their right to Liberty was again infringed upon with the many acts that were passed. The colonists were not bothered by the idea of paying money to their country. The problem was that they were accustomed to voting on their taxes, and not being taxed without representation. Furthermore, the Britain, imposed on the right to freedom by not allowing the colonists to settle past the Appalachian Mountains, in this way they took away their right to live where they want. Property is the third of the natural rights; this was taken again with the many acts. They didn’t get to vote on these acts, as they were accustomed to. Essentially the government was stealing their property. Also the colonists were forced to house Soldiers, as well as provide food. The colonists would have been fine with supporting the soldiers if there was a need for them. But the French and Indian war was over and any problems that would happen with the Indians the colonists could have taken care of them. The colonist were angry that they could be forced to house soldiers without ever being asked permission first, as well as the fact that they were in a time of peace.
Another reason that the colonists were correct in rebelling was that precedent was being broken. The colonists were used to slacker rules than the citizens living in England. The previous two kings were weak Kings and the Parliament was on good terms with the colonies. When King George III came to power he intended to bring power and nobility back to the throne. He made a lot of changes in the way things were run in the colonies. Previous to his rule the people elected the Legislative assemblies. All tax decisions were made by the colonial legislatures, the salary of the governor was chosen by legislation, the jury was made up of American colonists, and the colonial militia was their army. When King George III began to rule, everything changed. Taxing acts were passed and gave the people no voice. The salary was decided by Britain, in order to keep them loyal to Britain. The Colonial Militia was pushed aside and the people were forced to quarter soldiers. With all of these acts, Britain changed drastically and quickly the way that it taxed the people, and to justify this, they passed the Declaratory Act, stating that they can tax the colonists however they want.
King George III made it difficult to have economic success at this time, by imposing taxes on many goods, and even bailing out the British East Indian Company made it difficult for some colonists to compete with the prices. After the Boston Tea Party, Britain shut down the entire Boston, punishing the entire city and hurting their economy, based on the actions of a few people. The colonies were under the Navigation Act, which made it difficult for many colonists to make a living, because they could only buy and sell things to Britain. This kept many Americans from making a lot of money elsewhere. It is interesting; he imposed all of these taxes, and justified them by saying that the colonists owed Britain for protecting them during the French and Indian War. When in reality, Britain was protected the colonies as their asset, more than they were protecting the people as citizens of Britain.
One may say that Britain had every right to tax the people, and every government does, but they need the consent of the people. Americans sent delegates to Britain, to argue their case, and they boycotted. They defended their rights for the most part peaceably. How long could one expect to have their rights denied, before they have no choice but to break away? The colonists did everything that they could, and they were ignored every time. They were as loyal as anyone should be to their country, but there are rights that everyone has, and deserves. If Britain had been more sympathetic towards the God-given rights of the people we probably wouldn’t have America today. Samuel Adams once said “I have long feared that this unhappy contest between Britain and America will end in rivers of blood; should that be the case, America, I think, may wash her hands in innocence”. We can see from this quote that the Founding Fathers weren’t looking for a fight; in fact Samuel Adams said that he “feared” it, but despite their fears they gave up so much to guarantee the rights of our nation today.
