Name: What’s Coming is Worse Than 1929 Depression, It Will Last For Decades
Uploaded: 2025-09-22T18:25:56.000Z
Duration: 19 min 23 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

The US economy is on the brink of catastrophe.

The size of the US economy in 2020 was about 20 trillion dollars.

Today it has risen to over 30 trillion dollars.

So the average American should have gotten at least 30% more wealthier.

But if you ask anybody in the streets of New York or LA or any other American city, they will tell you that prices are soaring, wages are falling down and life gets a lot harder.

So how is it possible that the US economy is growing faster than ever and yet the life for the average American got a lot harder?

The truth is that the US government has quietly been hiding a stagflation and that is the worst thing that could happen to any economy, even worse than the great depression of 1929.

If you think that I am exaggerating, let me show you the facts.

Meanwhile, give this video a thumbs up and let's get right into it.

The great depression of 1929 should not have happened in the first place.

In fact, prior to the 1929 great depression, the US economy had one of the best periods in its entire history.

When world war 1 happened in 1914, the allies were fighting the central powers and while these two countries or these two sides, I would say, were fighting each other, the United States was making a lot of money by selling stuff to the central powers and the two allies.

The United States was getting richer while those countries and both of these sides were getting significantly poorer.

There wasn't a single sign of economic crisis.

So how is it possible, after such a great period of economic prosperity, the United States faces probably the worst crisis in its entire history.

When the US economy began growing so fast, the average American became the wealthiest citizen of any other country.

The consumer market in the United States became the largest consumer market in the world.

And the average American started investing.

The stock market was growing faster than ever.

And a lot of people got delusional, a lot of people wanted to make a lot of quick money out of the stock market when they didn't understand how the market works.

So people started borrowing money, investing in the stock market, and asset prices were inflated to levels that we haven't seen prior to that.

So the market turned into a bubble and it collapsed in 1929 because the market wasn't actually backed by real earnings.

And it's very normal for the stock market to crash because when prices are inflated beyond what they are actually worth, there will be a correction and prices are going to fall down, so the government should have left the economy to do its thing.

However, it quickly turned into a domino effect.

Since most of those investments were on debts and the entire economy was over-relying on debts, bank failures became a normal.

So if you borrowed money to invest in the stock market, now you cannot pay off your debt to the bank, what do you think is happening to the bank?

The bank has failed and declared bankruptcy.

People got into panic and they went to other banks to take their money out of those banks.

And very quickly, most of the banks in the country began declaring bankruptcy, which worsened the entire situation.

Even though the United States was the wealthiest country at that time, even today, the United States is the wealthiest country in the world.

Most of the wealth was concentrated in the top 1 percent, while the vast majority of people either lost their investments, and there was a huge unemployment in the entire country.

The true size of the economy is the true output of the economy and the true productivity, what exactly the economy can produce, cars, steels, technology, or whatever.

Multiply that by the prices within the entire economy, and you have your GDP or the size of the economy.

This is a simplified version of how we can actually imagine the entire economy.

When you have a bubble, when prices are rising faster than the output and the productivity, what do you think is going to happen?

Sooner or later, there should happen a correction, so prices fall down.

And that's exactly what happened in 1929 when the stock market collapsed, so the government should have left the economy to do its thing.

The government should have left the free market to do its thing.

The market is overvalued, now there is a correction and prices are falling down, it's okay, let's just let the economy over time increase the productivity to match the prices.

Even if the prices are falling down, now they will continue rising because we are increasing the productivity.

But the government decided that we have to protect American businesses, we have to protect American companies from outside factors.

Those European companies, those European nations are competing with the US companies.

If we stop those companies from coming into the United States and out-competing our companies, we might solve the great depression.

So the government passes the tariff act of 1930.

What do you think that have done in the economy?

Those countries on the other side of the ocean have also increased these tariffs in retaliation to the United States.

What made the US economy the wealthiest economy in the world isn't because the United States was isolated from the rest of the world, but rather it was because of globalization, but rather because the United States was selling to the central powers, to allies, and to the rest of the world which made the United States such a wealthy economy.

Now you have imposed the tariffs and you are not allowing these countries to trade with you anymore, what do you think have happened to the size of the US economy?

And that's why tariffs actually worsened the great depression.

In fact, tariffs made a normal economic crisis into a great depression that lasted for the next 10 years.

But gladly, the next president of the United States was Franklin Roosevelt, and he understood that the first thing that we have to do is get rid of all of those tariffs so that the US economy will start trading with the rest of the world and over time, the US economy is going to grow.

The government decided that we need a new actor in the economy.

The point of the deal was that the government is going to intervene massively into the economy by introducing a lot of government programs such as social security.

That huge government spending is going to boost the economy and will help it to grow.

Because besides people within the entire economy, besides the companies, besides the banks, now you have the government that has trillions of dollars, at that time billions of dollars that it can throw into the economy and create that demand and lift the economy out of the great depression.

The economy began to recover and then world war 2 happened that gave the United States another opportunity to sell massively to the rest of the world and become the dominant power in the world.

And now compare that to what's happening today.

We have a hidden crisis that is way worse than the great depression.

You see, financial crises are a fundamental part of the economy.

The economy starts to grow, then it reaches a certain peak and there is a crash.

Suddenly, prices adjust and productivity starts to grow again or grow much more than it was prior to that and then it reaches a certain peak.

The only reason that the economy reaches a certain peak and then crashes is when prices start rising faster than the productivity.

If prices are rising and the entire economy and the output of the economy is also growing, then the true size of the economy is also growing which is great for the economy.

Even if inflation is 5 percent, but the output in the economy and the productivity is growing by 10 percent, then the real growth of the economy is actually 5 percent.

So even though that inflation on one side is high, the true size of the economy is growing and the well-being of people is also growing.

The problem comes in when prices are growing way faster than the output of the economy.

So let's take this equation and compare it to what's happening in the world today or with the US economy.

The US GDP is growing between 2 to 3 percent or has been over the last couple of years.

Now it has slowed down to less than 2 percent, but over the last couple of years, the growth has been around 2 to 3 percent adjusted to inflation.

Inflation at the same time has been at around 3 percent.

Based on this data, the US economy is doing great.

So the question is, why people are complaining?

Why do people complain that prices are rising while wages are falling down and life got harsher?

The problem is that this data that the government is presenting to us is absolutely false.

The real question is that, maybe the GDP growth they are presenting to us is correct, but are inflation numbers that the government is providing to us with the CPI report is correct?

Because if GDP grows, let's say by 4 percent, and CPI, the real CPI is also 4 percent, then the economy hasn't grown at all.

But if we find out that the real CPI is actually 10 percent, then prices are growing way faster than the productivity and that's what we call stagflation.

Now we have different metrics to measure inflation, but over the last 50 years, the government has been tricking the numbers in such a way so that they bring the inflation number down and down.

Back in the 1970s, if you pull out the CPI, they used to actually include home prices or mortgage rates.

So if house prices, for example, have increased by 10 percent, then it will go to the CPI report as 10 percent.

Some people might say, well, the vast majority of people in America buy their houses with a mortgage, so it makes sense to include mortgage rates instead of house prices.

If mortgage rates have increased, you would make that part of the CPI.

But then they realized that that actually increases inflation too high.

So let's remove house prices, let's remove mortgage rates, and come up with a different metric that will kind of represent the cost of shelter, but it doesn't represent exactly house prices.

And suddenly inflation numbers have dropped dramatically.