This book takes the six books written by Churchill about the war and combines them into one abridged work. Churchill won the Nobel Prize for Literature for his epic work documenting the earth's most destructive war.
But the part that made me stop was his description on pages 20 and 21 of events that led to the Great Depression. Mr. Churchill reminded me that there are not many things in the world that are truly unique. And, during this time of uncertainty for many, the tried-and-true methods will help get us through. For starters, remember to extend a helping hand, stave off surrender and band together.
In 1959, Churchill wrote the following about the 1920s (complete with British spelling):
"The year 1929 reached almost the end of its third quarter under the promise and appearance of increasing prosperity, particularly in the United States. Extraordinary optimism sustained an orgy of speculation. Books were written to prove that economic crisis was a phase which expanding business organisation and science had at last mastered. "We are apparently finished and done with economic cycles as we have known them," said the President of the New York Stock Exchange in September. But in October a sudden and violent tempest swept over Wall Street. The intervention of the most powerful agencies failed to stem the tide of panic sales. A group of leading banks constituted a milliard-dollar pool to maintain and stabilise the market. All was vain.
"The whole wealth so swiftly gathered in the paper values of previous years vanished. <The prosperity of millions of American homes had grown upon a gigantic structure of inflated credit now suddenly proved phantom. Apart from the nation-wide speculation in shares which even the most famous banks had encouraged by easy loans, a vast system of purchase by instalment of houses, furniture, cars, and numberless kinds of household conveniences and indulgences had grown up. All now fell together. The mighty production plants were thrown into confusion and paralysis. But yesterday there had been the urgent question of parking the motorcars in which thousands of artisans and craftsmen were beginning to travel to their daily work. Today, the grievous pangs of falling wages and rising unemployment afflicted the whole community, engaged till this moment in the most active creation of all kinds of desirable articles for the enjoyment of millions. The American banking system was far less concentrated and solidly based than the British. Twenty thousand local banks suspended payment. The means of exchange of goods and services between man and man was smitten to the ground, and the crash on Wall Street reverberated in modest and rich households alike.
"It should not however be supposed that the fair vision of far greater wealth and comfort ever more widely shared which had entranced the people of the United States had nothing behind it but delusion and market frenzy. Never before had such immense quantities of goods of all kinds been produced, shared, and exchanged in any society. There is in fact no limit to the benefits which human being may bestow upon one another by the highest exertion of their diligence and skill. This splendid manifestation had been shattered and cast down by vain imaginative processes and greed of gain which far outstripped the great achievement itself. In the wake of the collapse of the stock market came during the years between 1929 and 1932 an unrelenting fall in prices and consequent cuts in production causing widespread unemployment."
-- Memoirs of the Second World War, an abridgment of the six volumes of The Second World War, by Winston S. Churchill, pp. 20-21. Mariner Books.(emphasis added)
Sound familiar? Eerily familiar?
I am not predicting a depression, but I certainly was not comforted by reading the above passage. It made me recall the main theme from the new TV series Battlestar Galactica, which is "All of this has happened before and all of it will happen again."
The economy is bigger than politics, so I am not going to use this post to assign blame or to prescribe some sort of solution. I will even resist the temptation to badger over the glut of non-regulators manning the positions of regulators. The fact remains that our foundational financial institutions found ways to over-indulge and would have found a way in any event.
What matters is that many people are really hurting out there. We all know people who are being ground to dust by circumstances. It's a scary time and unemployment has been rampant.
I am not sure where we go from here, but I hope our populace will resist the usual mud slinging and band together. I hope our leaders can find the strength to tell us what the truth is and not try to sugarcoat it. I hope we can embrace real solutions even if they are difficult or non-compliant with our ideological beliefs.
In any case, such things will take time and no solution will work quickly.
In the meantime, its time for all hands on deck. While bigger solutions are sought to the extent possible in Washington, it's time to help each other. None of us are in this alone and today's hard luck neighbors may end up being the ones who pull you out of the abyss if or when fate changes hands.
I always talk about bootstraps. We can control events to a point. We can make opportunities into successes by our efforts, but we never do anything alone. And, now more than ever, we need each other.
Another lesson we can take from Mr. Churchill is that no matter how bad things get, we must persevere to the end. No one can say that with more authority than the man who rescued England from perils we cannot understand today. His favorite term was "KBO," which means "keep buggering on."
We may not be fighting on the beaches or in the air, but we can fight for homes and for each other. The message is the same in war as in economic turmoil: Never Surrender. And hang in there.
