Headlines say today's economic crisis is close to becoming the "Second Great Depression." Does that mean Americans will soon see bank runs and bread lines?
Probably not, says John Watkins, an economics professor from Westminster College. Today, America has two programs that were not available in the 1920s: unemployment insurance and Social Security.
But America should use lessons from the past to help dig itself out of the current economic crisis, Watkins said Sunday during the Forum for Questioning Minds. The discussion series is held the second and fourth Sundays of each month at the Salt Lake City Main Library.
Securing the banking industry is the first order of business, he said. "We can't let the system of banks fail. And nationalizing banks is probably the least costly option."
Unlike the private baking system -- where big profit is the only goal -- a "nationalized" banking system would keep the needs of citizens and the nation in mind. Regulations and strict oversight must be part of the plan, he said.
"For the past 30 years, we have been living under a system where we let businesses do whatever they please," he said. "But even shepherds have dogs to keep the sheep in line."
History says putting people back to work is another part of the solution, Watkins said.
"Somehow we have to be able to give people jobs," he said. And there are plenty of things that need to be done. Repairing roads, water systems and parks would provide needed jobs and improve the country's decaying infrastructure, Watkins said. Finding new renewable energy sources would also help reduce our dependence on foreign oil.
Finally, the imbalance in America's trade deficit also must be fixed, Watkins said. Today, America imports far more than it exports.
"The U.S. should no longer be used as the dumping grounds for the rest of the world's output."
While the U.S. economy is a intricate system that can be complicated to understand, it's not impossible to turn it around, he said.
"We are reasonable people. We should be able to figure our way out of this."
