When I was young, (yes, electricity had already been discovered and was in general use) there was term often used by newspapers and other media to disparage or otherwise shame certain members of society. That term was “being on the dole” and it came to signify those unfortunates that were having a tough time financially and required governmental assistance to get thru the transactions of day-to-day living. That phrase originated in England in 1917 and was in reference to benefits being “doled” out by the government to generally poor souls that couldn’t otherwise provide for themselves. Since the U.S. at the time, had a hard-core, laissez-faire, capitalistic type of thinking ingrained into most people’s psyches, having to receive government assistance was considered especially shameful. The mark of a slacker, one too lazy or otherwise too indolent to provide for themselves. Indeed, according to newspapers that were published in those days, no criminal’s deeds were as heinous as that of someone “being on the dole.”
With the advent of FDR’s New Deal, however, the use of that term began to lose it’s luster. It turned out that with the creation of Social Security and Medicare legislation, virtually all seniors were eventually “on the dole,” so to speak. More social programs regarding veterans benefits, student loans, housing and other government assistance came into being, so it seemed almost everyone “was on the dole” at some point in their lives, and that inglorious phrase was eventually tossed into the dustbin of history. It was to some degree revived in a new form during the Ronald Reagan administration in the 1980s. The term “welfare queens” suddenly came into existence as racist code to denote single black mothers who were supposedly having babies out of wedlock in order to receive larger government welfare checks. When it was pointed out that the preponderance of welfare payments were being made to white people, that derogatory phrase also faded from the public forum. But the on-going efforts of the fortunate to stigmatize the unfortunate in some shape or manner continues on unabated.
This is kind of a long way around to come to the main point of how genetics is often the determining factor in the way our lives will unfold and the destinies in store for all of us. Some time back I wrote a piece called “Genetic Predispositions” which still receives “views” years later, and I thought I would update the original with additional insights. In the original, I cited some extreme examples of how one’s genes are often the determining factor of the life being led. How, due to genetic malfunction, some fetus brains are bathed in an overdose of serotonin while in the womb. Hence, when these individuals grow into adulthood, they cannot derive pleasure or comfort from those activities that normally satisfy most of us, and thus, are often likely to turn out to be brutish rapists or serial killers to satisfy their lusts. Even when the brain develops normally, genetic make-up is usually the name of the game.
Those whose DNA is formed with a talent for fiscal matters often do the best in our capitalistic society. Bankers, Wall Street brokers, hedge fund managers, entrepreneurs etc. often accomplish the most financially, and are able to lead the most luxurious materialistic lives. Not that such bountiful materialism necessarily translates into lifelong happiness and serenity. Just ask those who knew Elvis Presley, Marilyn Monroe, Michael Jackson or Whitney Houston for starters. All four of whom had not only acquired immense riches, but, also millions of adoring fans and worldwide fame; but still managed to kill themselves at a fairly young age. On the the other hand, those whose DNA thrusts them into the artistic side of human performance usually receive the short end of the stick from a capitalistic oriented society. Very few writers, artists, musicians, etc. receive just compensation for their efforts and often live in poverty throughout their lives. This could also result in early demise. Think Vincent Van Gogh or Edgar Allen Poe, neither of whom caught a break as far as public recognition of their talents while they were still alive, and who also died at an early age
Most of the rest of us are somewhere in the middle, living anywhere from relatively lower middle class, to reasonably comfortable lifestyles, depending on the talent programmed into our DNA. But what I didn’t mention last time are the environmental factors that one grows up with, that also have a huge influence on our future lives, and must be considered along with genes as one of life’s determining forces. An Irish poet put it best when he wrote that “They fuck you up your Mum and Dad; they fuck you up real good.” Those coming from abusive or dysfunctional homes where parents might be alcoholics, druggies, or child molesters, hardly have a chance in life, no matter how strong their genes may be. Some hearty, brave souls do manage to escape an horrendous upbringing, however, and go on to thrive in life.
It the end it virtually all comes down to a matter of genetic inheritance and environmental upbringing. I think, though, that genes are more of the determinant factor. As for me, at this stage of my life, I’m quite content to be “on the dole” and receive my government benefits.
DEPRESSION AT ITS ROOTS
I thought that, for a change of pace, we would discuss a really fun topic like depression. No not the mental breakdown type, but the fiscal meltdown type instead. Although if you have a financial breakdown, it’s sure to cause a plethora of the mental type, so maybe we’ll wind up talking about both. They say that money can’t buy happiness, but tell that to the homeless guy sleeping in a cardboard box in a back alley or under a bridge somewhere. Or to the recent winners of the mega-millions jackpot as they were popping the champagne corks. It’s hard to imagine any individual or family where money doesn’t play a central role.
Throughout American history there’s been at least a dozen major depressions, or panics as they were sometimes called, starting as early as 1807. There was also a few milder recessions thrown in for good luck. (Ronald Reagan used to say that a recession is when your neighbor loses his job, and a depression is when you are thrown out of work. Not a bad definition.) But the depression I would like to focus on is the one back in the thirties. Not the 1930s, but the 1830s, or 1837 to be exact. It’s hard to believe they could have a depression back then when the entire U.S. population was only about 17 million. But not only did they have a depression, it was just as severe and destructive to people’s lives as the 1930s joyride. Those that are such strong advocates of capitalism somehow never get around to talking about capitalism’s failures, and how numerous they have been.
The U.S. government in 1837 was a modern day tea party’s dream come true in that it hardly did anything and hardly spent any money. It had a small Army and a few ships they called a Navy, a State Department that conducted a limited amount of foreign affairs, a small Attorney General’s office, and perhaps something that looked like an agriculture department to help out farmers. Even then people recognized that food was too important to deny at least some government involvement to help offset the hardships that droughts or flooding rains may have caused farmers. But outside of these limited functions there was little government activity. Revenues came primarily from tariffs on imported goods, so tax rates on rich or poor was a non-factor.
In November of 1836, the only man in U.S. history to be elected from the House of Representatives directly to the White House, Martin Van Buren, became president in the following year, succeeding the the 8 year presidency of Andrew Jackson. Economic times were good at the start of the Van Buren presidency, as land values started to sky rocket in value because of increasing numbers of people pushing west. One might say there was a growing real-estate bubble, not unlike the one that has led to our current economic down-turn. Banks were eagerly encouraging people to borrow money and invest in real estate to keep land values rising. Sound familiar? However, with all the cheap money flooding the market, inflation started to soar, and the government, in its infinite wisdom, declared that outstanding debt would have to be repaid in gold or silver, which made all the paper money on the market almost valueless. Instantly, there was widespread panic, as people rushed to their banks to withdraw their life’s savings while they could. Almost overnight, 40% of the banks in the U.S. had to close their shutters, since they were unable to meet their financial obligations. Financial destruction and ruin ensued on a massive scale in most people’s lives, from which they would never recover.
Since governments in those days didn’t do much of anything outside of defense and foreign affairs, Van Buren was clueless as to what remedial actions the government might take to alleviate the hard financial times. So in the end he did nothing, and the unrelenting depression dragged on for 6 years until finally the economy started to improve in 1843. The depression caused Van Buren to lose his re-election bid in 1840, and he probably went to his grave insisting it was not government’s role to bail out the economy. Sort of like today’s far right, who are still monumentally upset that the current administration bailed out General Motors and Chrysler in their time of need, instead of letting them go out of business, with a few hundred thousand more jobs going down the drain.
What is the relevance of the 1837 depression to our current world affairs? It’s not that capitalism is bad. Indeed, it’s probably the only real workable economic system at this stage of man’s evolutionary development. Even Communist China recognized that when they went to a market economy. But capitalism does have some deep fault lines that are ripe for exploitation by the unscrupulous. For example, when my wife and I bought our first house, people acquired real estate primarily for living purposes. We were required to put 20% of the purchase as a down payment. But early in the 21st century the fast-buck artists felt there was a quick killing to be made by constantly inflating real-estate values through convincing potential home-buyers to secure mortgages they could ill-afford with virtually no down payment. Real-estate prices could only go up, they told dubious buyers, before the crash came and all the foreclosures with it. And all the people now sitting in their homes with mortgages that are under-water. The 1930s depression was caused by the same-type of fast-buck artists that were exploiting the stock market, causing ever-increasing and unsustainable stock prices until the crash came.
So in the end it doesn’t matter whether it’s capitalism or socialism, or any other ism. What matters is the honesty and integrity of the people participating in what ever system is put in place. What’s important is to have the safeguards necessary to prevent the dishonest, the unscrupulous, and the out-and-out scammers from perverting whatever the chosen system of economics is. One final note. Mitt Romney has secured the GOP nomination, but during the primaries he referred to himself as a “severe conservative.” I wonder if that’s like a severe depression. Maybe it’s just a severe mental breakdown.