S5:E36 The Only Thing We Have To Fear

S5:E36 The Only Thing We Have To Fear

by | Jun 13, 2023 | Episodes

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What did FDR mean by “the only thing we have to fear is fear itself?”

On March 4, 1933, FDR delivered his inaugural address. In it, he used the phrase “the only thing we have to fear is fear itself”. I did a little searching and this phrase is used a LOT in Christian books. So often. But it almost always refers to the fear one person has in their heart. In reality, it is a comment on collective fear. The Great Depression started in 1929 and was exacerbated by a bank run in which Americans lost faith in the value of our currency and the banking systems.

Do we believe in God’s economy?

That is an important distinction. FDR’s speech is about collective fear. As I’ve contemplated the modernist/fundamentalist debate this season, I keep returning to the idea of fear, not in the US economy but in God’s economy. He commands us to love the Lord, keep His commands, love our neighbors, turn the other cheek, and give to those who ask of us. Why do we forget to do this important work? Could it be because we’ve lost faith in God’s economy?

This episode features a clip from my discussion with Jacob Goldstein, former host of NPR’s Planet Money podcast and the current host of Pushkin’s What’s Your Problem? podcast. His book is Money: The True Story of a Made-up Thing.

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Discussion Questions:

  • Why does it matter that FDR’s quote “…the only thing we have to fear is fear itself” is a collective statement and not one about individual fear?
  • What are some identifying features of God’s economy?
  • Do you trust in the way that God tells us to do things?
  • When was the last time you prayed for someone who you don’t like?
  • Do you believe in turning the other cheek?
S5:E8 The Gold Standard and the Great Depression

S5:E8 The Gold Standard and the Great Depression

by | May 3, 2022 | Uncategorized

How the gold standard made the Great Depression much worse

The Great Depression. Some say that it was caused by a failure of the stock market. Well… that’s not all. Jacob Goldstein, host of NPR’s Planet Money podcast and author of “Money: the Truce Story of a Made-Up Thing” joins us to discuss the role the gold standard played in making the depression what it was.

A run on the bank

Here is why the gold standard made the Great Depression much worse. Simply put, the panic of 1929 caused people to run to the bank and demand their money back in the form of gold. We were on the gold standard back then and you could literally go to a bank and ask for them to get your money in gold. But banks were running out! There was only so much gold on hand because banks don’t generally keep 100% of their money in the vault. And banks (for the ease of our understanding things) “create” money when they do loans. So it was possible for a bank only to have a certain percentage of their loans backed by actual gold.

The Federal Reserve Raised Interest Rates

This created real trouble. If the banks ran out of gold, they’d go broke and have to close. So the Federal Reserve decided to raise interest rates. Raising interest rates gives people an incentive to leave their money in banks because then they get more interest. BUT it also made it harder for people to borrow money or refinance their existing loans. Which put a huge crimp on the American financial system. In order to keep gold in the banks, the Fed had to hobble the loan industry. That meant that businesses couldn’t get loans to help with payroll, and people looking to start a business couldn’t get the money they needed. And the economy froze.

That is why the gold standard was bad for the economy. Preserving it meant sacrificing the loan industry.

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