Are social welfare programs part of the safety net to help prevent a 1930's type Depression?

[Forget War Buy More]

Harvard economist Benjamin Friedman states the safety nets that can be traced to the Great Depression, like Social Security, unemployment benefits, food stamp program “give people a sense of security even when they’re out of work. ”

In turn they " establish a floor for how panicked consumers become.”

Thoughts?

[harry k]

The "safety nets" were put in place because of the 1930's depression. However to prevent another 1930's type depression, you have to see what caused the depression. The depression was triggered by a credit crisis, not unlike what is happening today. However, what "caused" the depression was the isolationist reaction to the crisis. Google Smoot-Hawley Tariff Act. High Tariffs and protectionism is what caused the global economy to grind to a halt.

[Johnny 2 Times]

It makes sense. Panic always threatens to turn a cyclical downturn into a rout. However, I doubt that Friedman is a fan of the further expansion of these policies, nor would he condone generational welfare programs. Hand-ups are for people who are trying to work, not for those who refuse to be productive.

Also, keep in mind that the Great Depression sinking to the level that it did was a result of the Central banks not providing liquidity needed in the wake of bank failures. The severity of that depression can be blamed on monetary failures, not a lack of social welfare programs.

Overregualtion and protectionism are what caused the Depression to last for a decade.

[Kelvinistic]

of course, but there's going to be a big problem this
time round since this government has already borrowed so massively and when the crash is felt it is going to be hard to raise the loans for such programs.

[justagrandma]

They did come from that time, its nice to know Americans aren't going to be starving and selling apples on street corners. The most important thing to come out of those times for the average man is limits on margins in the stock market, and federally insured deposits in banks.
What most middle income people today don't realize is that income isn't the only qualifier for welfare programs, its your assets that have to be diminished too. In some places that means a net worth of less than $1,500 , so no car or home.
That means a real problem in selling all that you own to qualify. Then you have to show you spent if all and have no bank accounts. If they knew that they might become more panicked, not less.

[Luckygiraffe554]

Social welfare programs ---- I'll just call them out for what they are, nothing more than socialism, or wealth redistribution ---- were implemented in part because of the Great Depression, but there are also other factors that influence their existence today.

One is various treaties the U.S. has been a signatory to such as the Universal Declaration of Human Rights. Section 25 of this document states that:

"Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control."

However, in the case of the United States, these socialist programs aren't guaranteed to people. Congress can use revenues it collects from the Social Security tax for purposes other than socialist programs, without providing funds to keep the socialist system operating. Congress can also abolish socialist programs whenever it pleases without regard to prior 'obligations' (Congress is under no obligation to provide those who have paid into the program with services).

Also these programs can only be voluntary (and rightly so), as participating in socialism cannot be forced on the People because the Constitution never granted the federal government the power or authority to do so.

The main statutes that govern Social Security can be found in Title 42 of the U.S. Code, Chapter 7; and also 20 C.F.R. Chapter III

[Word Girl]

Search "The New Deal"/Roosevelt, the "War on Poverty"/LBJohnson and the Robber Barons.