Letter: Economic history repeating itself
The following are excerpts from letters I wrote to the Globe on Jan. 29, 1994-Feb. 8, 1994:
"In the last 10 years the federal debt nearly tripled. Household and corporate debt have skyrocketed. We have become a net debtor nation with huge trade deficits. Our nation has become a retailer of foreign goods. Wages adjusted for inflation are less than they were 10 years ago. We have loaded future generations with debt that they will never be able to repay. We have exported the high paying jobs and ended up with low paying service jobs. We have had the largest one day crash in the stock market since 1929. We had a savings and loan and farm crisis that, cost nearly as much to bail them out, as it cost us to finance World War II. So much for deregulation. Remember, money never disappears, it only changes hands. Aren't we lucky that our generation is only getting the bill for the interest. The next generation will be getting the bill for the principle. The so called prosperity of the 1980's was mostly on borrowed money. Is it any wonder that the younger generation is somewhat rebellious and disillusioned? Can we really blame them?"
Now, 14 years later, the same thing all over again. Then, it was Japan we owed billions to -- now it is China and OPEC. Now it is the large banks and homeowners that are in trouble. The stock market is in free fall, our trade deficits are huge and the dollar is weak. More dergulation has got us into trouble again. If we don't learn from past mistakes, they will most likely be made again.