Category: “Wall Street” – Securities Markets

The first Bonus Book of the Week is “Do No Harm, Stories of Life, Death, and Brain Surgery” by Henry Marsh, originally published in 2014. In this personal account, the author– a British brain surgeon– described his horribly depressing career. He recounted how he removed brain tumors from, and clipped aneurysms of, his most memorable patients through the decades. Even when a tumor was benign, it would keep growing and inevitably kill the patient unless taken out. Even when a large aneurysm had yet to burst, there was a chance (incalculable, as every patient is different) that it would burst in the patient’s lifetime.

Metaphorically speaking, some people would say that the outgoing president of the United States is a tumor in the nation’s brain. The author wrote, “You can never know for certain from a brain scan exactly how a tumor will behave until you start to remove it. It might be hard or soft, dry or bloody…” Prior to diagnosis, the most common symptom patients experience is headaches– which are uncharacteristic for them in daily life.

In order for a brain surgeon to acquire experience, he needs to actually practice on real patients, and make mistakes. Even when the surgeon does everything right in treating the patient, something could go wrong, anyway. In addition to stressing over his patients, the author had to deal with bureaucracies. But regardless of the healthcare system an industrialized country has (government-run, commercial, or a combination thereof), it’s comprised of: “… government targets, self-serving politicians, tabloid headlines, scandals, deadlines, civil servants, clinical cock-ups, financial crises, patient press-groups, trade unions, litigation, complaints and self-important doctors…”

Read the book to learn of the author’s trials and tribulations in treating patients not only in Britain, but also in Kiev.

The second Bonus Book of the Week is “Since Yesterday, The 1930’s in America, September 3, 1929 – September 3, 1939” by Frederick Lewis Allen, originally published in 1939.

“To hear angry Republicans and angry Democrats talking, one would have supposed the contest was between a tyrant determined to destroy private property, ambition, the Constitution, democracy, and civilization itself; and a dupe of Wall Street who would introduce a fascist dictatorship.” Such was the nature of the 1936 presidential election in America.

Clearly, propagandizing hasn’t changed in ninety years. Presidents want to have it both ways: they take credit for all positive economic news, and blame their predecessors for all negative economic news.

At the dawn of the 1930’s when the economy went south, Americans held very strong opinions about their political preferences, heavily influenced by the propaganda they read in newspapers and magazines. Not much has changed, except that now they can force their opinions on the world at the speed of light. Immediately they think they’re experts from watching the idiot box and/or reading the Web; the attitude is, “I’m not an attorney, not a doctor, and not an economist, but I play one on social media, because I can, and because I’m right.”

Other similarities between the Depression Era and recent times include:

• Golf was a popular businessman’s game.

• Fans of professional sports worshipped their star players, like in baseball, tennis, and golf– Babe Ruth, Bill Tilden, Bobby Jones, etc.

• Automation due to new technologies (such as steam, gasoline and electric power, inventions and farm machinery) and urbanization were eliminating jobs in industry, agriculture, and textiles more than offshoring ever would.

• Listeners worshipped a pundit on the radio– Father Coughlin– a hate-spewing demagogue from the Detroit suburb of Royal Oak (but he broadcast on only one station, not a national network, so he became nationally known only in his later years in the 1930’s).

• All players in the banking industry were financially interdependent so when the system collapsed, they all fell like dominoes. Then-president Hoover established the Reconstruction Finance Corporation in order to bail out only his corporate cronies, as he didn’t believe in stimulus money for individuals.

• In summer 1932, Howard Scott and his inscrutable theory of Technocracy was a fad. The author wrote, “Yet in the meantime it had offered an object-lesson in the readiness of the American people for a new messiah and a new credo” just as “Wikinomics” (see the post in this blog) was supposed to be the next big thing.

• The political agenda behind COVID has forced Americans to relax online similar to the way the Depression brought on: the five-day (rather than six-day) workweek, construction of sports and recreational areas of all kinds, and provision for transportation to get to them.

• Beginning in late 1936 into 1937, in the Midwestern and Northeastern United States, a bunch of rivers overflowed their banks due to humans’ misuse of land; in the third week of September 1938, 682 people died in an unexpected hurricane that destroyed regions unprepared for flooding, in New England and Mid-Atlantic states.

• Between 1931 and 1936, there were actually more people leaving the U.S. than coming in, for various reasons, and the U.S. birth rate was slowing.

• Ultra-rich Americans who refused to face inconvenient facts were the ones who hated FDR when he was elected president.

Proposals distorted in propaganda that played out in the Depression Era, whose outcomes are yet to be seen in recent times, included:

• In the 1930’s, in order to allow men to keep their dignity, the government put them to work instead of giving them handouts. In their first few years of existence, FDR’s alphabet soup of mostly federal (rather than state or local level) jobs and programs was nonpartisan. However, eventually, the Democrats provided maximum funding as election day approached. On the whole, the financial relief worked well, except in Pennsylvania, where there was gross misuse of funds.

• FDR’s policies sought to mitigate environmental damage done by people, and prevent future natural disasters with his introduction of the Civilian Conservation Corps, Public Works Administration, and his signing of the Taylor Grazing Act into law. These kinds of measures simply require political backing and money– the sooner a sufficient amount of both are thrown at them, the sooner the problems will be solved!

• In February 1938, FDR floated a proposal to make seventy years the mandatory retirement age of all federal judges– including U.S. Supreme Court justices– and increase the number of justices from nine to fifteen. That unpopular proposal hurt FDR’s reputation.

In 1935, FDR introduced economic change to the country by instituting the Social Security system, financial assistance only for Americans 65 and older. In 1965, LBJ introduced economic change to the country by instituting the Medicare and Medicaid systems, healthcare funding for only those Americans who are poor and / or 65 and older.

In the future, the United States government might be introducing a better overall system of healthcare funding for all Americans of all ages and income levels (which is obviously much more complex than any system that has ever been created before in this country, so it’s not going to be perfect the first time around). In order to pay for the improved system, the government will likely have to raise taxes on the rich.

Along these lines, economics 101 says a nation’s economy is strongest when it has a healthy, well-educated workforce.

Whether deliberately or not, the political agenda revolving around COVID has rewarded education-software makers by closing schools across the country. So ironically, by allowing the software makers to get richer (because, presumably, their higher taxes will be paying for the improved healthcare-funding system), the software makers are dictating education policy. So in the long run, the nation will have a healthy, poorly educated workforce!

Anyway, read the book to learn much more about the tenor of the times in 1930’s America, culturally, politically and economically.