The Great Depression you never heard of(1920)

[Fransisco]

Great video here. It's about an hour but well worth the time.


http://www.youtube.com/watch?v=czcUmnsprQI

[vagabonddreamer]

Francisco!! We dont have high speed...so it would probably take me until the NEXT great depression...(hmmm maybe thats not so far off)...to download...any chance of a brief summary?? thx...vs

[Fransisco]

A lot of the economic indicators like unemployment and GDP were worse than in the 50's. Government did the opposite of what they did in the 50's and are doing now, a whole lot of nothing, coupled with lower tax's and lower government spending. As a result, even though it was painful at the time, it was over very quickly unlike the Great Depression which dragged on and on.

Japan had the same problems at the same time in the 20's and did what we see everyone today trying to do. Have the government try to borrow and spend their way out. And they made their problems drag out for ten years.

Looking at the evidence, the Austrians are right the Keynesian's are wrong.

It's also very interesting how economic historians gloss over the 1920 depression. They treat it as a footnote rather than something to learn from.

[Fransisco]

Here is a somewhat related post.

http://mjperry.blogspot.com/2009/11/jobs-saved-what-about-jobs-destroyed.html

[Fransisco]

BTW- If you have the opportunity to get high speed I don't think you'd regret the extra expense. I wouldn't be without it anymore.

[vagabonddreamer]

lol...man...if HIGH speed was avaialable here...i would get it in a HEART beat...cowboys arent high on the priority list here in BC...

thanks for taking the time to give an overview...i am curious...do you suppose that an extreme in either direction...would give cause to periodical "bumps" as seen in the 20's 50's 80's 90's and the last one??

ie...i dont agree 100% that ANY economic theory can claim to being 100% right all of the time forever....i tend to lean towards less govt so probably i would subscribe to the more "free capitalist" leanings of the austrians doctrine....but...i wonder...if there would still be problems with THAT system but for different reasons at different times...vs

[Fransisco]

A person can dream up all sorts of scenarios. But it is the evidence that shows us the way.

Government doing nothing didn't stop the event from occuring. It just shortened it.

Governments spending their grandkids pensions doesn't stop these things from occuring either but it sure drags them out a lot longer than they would otherwise be.