Wednesday, June 20, 2012

Learn To Fight Recessions From Our 1920s Experience


An excessive number of our economists, and thus the public, have been taught about the means of fighting deep recessions from the experiences of the 1930s.
And what they took away from the fight during that Great Depression has been misinterpreted. Roosevelt’s New Deal, a Keynesian effort, never got us out of that financial mess.
A decade earlier, the U.S. was in a far more economic, post-World War I meltdown, with worse unemployment and conditions more serious than those of post 1929, and far, far worse than today. 
Yet, there was a sharp, complete turnaround in just a couple of years. All, with a balanced budget and strong dollar.
For some reason we don’t fully study the booming 1920s as a means of seeing what the free spenders did wrong in the 1930s, and what those emulating them today are still spending without achieving economic recovery. (See the Earl J. Weinreb NewsHole® comments.)



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