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What Caused The Really Great Depression?

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Yeah....I don't know either.  But....this professor at Berkeley has a couple theories up her sleave.

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

 

I figured this was relevant to only the 2nd most popular impact scenario next to hege....and maybe even more popular than hege.....(aka both spending DAs & politics DAs & various econ-type DAs).

 

Yeah history!!!!!!  Especially in light of disagreements on this point.

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Ah that's funny I just had an AP US history class about the great depression. Neat, I'll have to watch this some time.

 

From class I get the impression that main causal factors were the laissez faire policies of Harding, Hoover, and the other Republican presidents in the 10's and 20's that allowed for anti-trust laws to go unenforced. Also those administrations didn't do hardly any regulation in the financial sector, which was allowed to speculate and loan like crazy, putting people and businesses into amounts of debt that would be impossible to deal with. Hoover was given multiple chances to provide stimulus that could have helped (especially the farmers who were hit by the Depression harder and quicker than anyone else in the cities) but declined repeatedly, sticking to the doctrine of laissez faire government. He did a little bit in the form of some bill whose name escapes me but it wasn't enough.

It'll be neat to compare this understanding to what the lecture has to say, thanks for the share nathan.

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From class I get the impression that main causal factors were the laissez faire policies of Harding, Hoover, and the other Republican presidents in the 10's and 20's that allowed for anti-trust laws to go unenforced. 

 

 

Hoover was NO WHERE near laissez faire and the ONLY people that would label him that are people that are far left... He increased government spending 40% from 1930-1931...Then in 1932 Hoover raised taxes... Then he raised the highest tax bracket to 63 % of the population. It's pretty evident which side of the line, and which parts of history your "teacher" shared... 


Why doesn't anyone in the damn world know what the Smoot Hawley Tarriff Act etc. is? You can't blame lack of regulation when heavy handed regulation, aka tarriffs, were a major contributing factor. It's called Protectionism, and it's really really shitty. 

It's also important to note that adding water to a draining bathtub, without plugging the drain (or even as far as "getting out" of the bath tub) is not only naive, but foolish. 

edit: also the depression of 1921 (which apparently no one knows about)  is important to note because it empowered the fed to make us all the slaves we are today! Is anyone surprised that the rise of the fed comes right before the depression? It's called vortex economics, George Soros ring a bell anyone? Where do you think he got all of his ideas? 

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Protectionism/Economic Isolationism was the driving factor, ridiculous tariffs and of course stock market speculation (lots of buying on the margin)

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^you must be BFFS with von  mises

He's not far off, but he's still one of "them"

 

They want you to perceive the world in terms of Left VS. Right, when in reality, they're part of the same game, essentially the same thing. The question should not be whether we should add more water (liberals) or put the plug in (conservatives), the real question at hand is why the fuck are we in the bath tub? In fact, the ENTIRE revolutionary war was fought because Franklin was bragging to British Parliament about how great the colonies were because we had no debt (aka, we didn't want to play in the fucking bath tub) 

Furthermore, every president that has EVER been assassinated tried to get us out of the tub... silver certificates and greenbacks ring a bell? That's my jaded, cynical, and mildly delusional perspective of reality....

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Hoover was NO WHERE near laissez faire and the ONLY people that would label him that are people that are far left... He increased government spending 40% from 1930-1931...Then in 1932 Hoover raised taxes... Then he raised the highest tax bracket to 63 % of the population. It's pretty evident which side of the line, and which parts of history your "teacher" shared... 

 

Why doesn't anyone in the damn world know what the Smoot Hawley Tarriff Act etc. is? You can't blame lack of regulation when heavy handed regulation, aka tarriffs, were a major contributing factor. It's called Protectionism, and it's really really shitty. 

 

It's also important to note that adding water to a draining bathtub, without plugging the drain (or even as far as "getting out" of the bath tub) is not only naive, but foolish. 

 

edit: also the depression of 1921 (which apparently no one knows about)  is important to note because it empowered the fed to make us all the slaves we are today! Is anyone surprised that the rise of the fed comes right before the depression? It's called vortex economics, George Soros ring a bell anyone? Where do you think he got all of his ideas? 

 

Can you post a link to your Dad's blog again? I remember liking it the first time and thinking I should read more of it.

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Thomas Sowell and Milton Friedman give interesting perspectives on the history of the Depression 

 

from a more liberal perspective there's an interview with Krugman (that I can't find) where basically he says FDR had it right until he gave into the right and stopped investing a ton 

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Hoover was NO WHERE near laissez faire and the ONLY people that would label him that are people that are far left...He increased government spending 40% from 1930-1931...Then in 1932 Hoover raised taxes... Then he raised the highest tax bracket to 63 % of the population. It's pretty evident which side of the line, and which parts of history your "teacher" shared... 

 

Why doesn't anyone in the damn world know what the Smoot Hawley Tarriff Act etc. is? You can't blame lack of regulation when heavy handed regulation, aka tarriffs, were a major contributing factor. It's called Protectionism, and it's really really shitty. 

 

It's also important to note that adding water to a draining bathtub, without plugging the drain (or even as far as "getting out" of the bath tub) is not only naive, but foolish. 

 

edit: also the depression of 1921 (which apparently no one knows about)  is important to note because it empowered the fed to make us all the slaves we are today! Is anyone surprised that the rise of the fed comes right before the depression? It's called vortex economics, George Soros ring a bell anyone? Where do you think he got all of his ideas? 

I can tell you're pretty passionate about this and that's cool but I feel like I should comment on a few things here.

 

At "he increased government spending 40%" and "raised taxes" - sure, he did. But he was president right off the heels of Calvin Coolidge, the one that believed (along with his secretary of the treasury) that taxes should be relieved and that less people should pay them. His Revenue Act of 1924 reduced income tax rates and cut all income taxation for about two million people. Then they did this again in '26... and '28... and kept spending down as well to cut down on government debt. In 1927 only the richest 2% of taxpayers paid any income tax at all. So of course Hoover looks like a big spender, when examined in isolation from his predecessors (Harding was just as much a penny-pincher as Coolidge was).

 

At the "teacher" jibe - eh, the school doesn't come up with our curricula, this is an externally-moderated AP course. Take it up with the college board and the Pageant textbook authors I guess.

 

At the Smoot-Hawley Tariff Act - you're right here. We learned it but I forgot to list that, and in doing so I attributed the depression to "laissez faire" instead of "conservative" economics (if that's even a fair descriptor). Harding, Coolidge, and Hoover were big on pro-business policies - high tariffs and low regulation (trust-busting etc.) Protectionism led to tariff wars and Aubtin's right, that was a huge driver too. But I wouldn't call tariffs a regulative practice - it regulates the price of imports, sure, but it's "good" (lawl) for domestic businesses. I meant regulation in a trust-busting sense.

 

I have to admit I have no knowledge of the 1921 depression, I guess there's only so much that can get fit into hour and a half classes. I'm also not sure who George Soros is honestly, so maybe you could clarify here for us.

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He's not far off, but he's still one of "them"

 

They want you to perceive the world in terms of Left VS. Right, when in reality, they're part of the same game, essentially the same thing. The question should not be whether we should add more water (liberals) or put the plug in (conservatives), the real question at hand is why the fuck are we in the bath tub? In fact, the ENTIRE revolutionary war was fought because Franklin was bragging to British Parliament about how great the colonies were because we had no debt (aka, we didn't want to play in the fucking bath tub) 

Furthermore, every president that has EVER been assassinated tried to get us out of the tub... silver certificates and greenbacks ring a bell? That's my jaded, cynical, and mildly delusional perspective of reality....

One of the most depressing things to look at is the rate of inflation after (it was Nixon i believe, correct me if i'm wrong) took us off the gold standard

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