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« A comment on "go mainstream" | Main | Evans on Banks, Knowledge, and Prudent Decision Making »


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That was great, thanks! Wow, we used to know. I also love Coolidge's "Charmed Circle"

"We have substituted for the vicious circle of increasing expenditures, increasing tax rates, and diminishing profits the charmed circle of diminishing expenditures, diminishing tax rates, and increasing profits."

What if Coolidge had run for president and been elected in 1928? He would have followed a very different economic policy after 1929.(He never thought much of Hoover's advice.) Would we have had the Great Depression? And if not would FDR have been elected in 1932? Think about all the possible scenarios. The most fateful words in recent history may have been, "I do not choose to run for president in 1928."

Nice contrast with Obama, substance vs style.

What about linking to a good account story of the 1920/21 recession to show what happens when the government keeps out of the way?

This is not the story, just a left wing account of the 1920s but look at this small statement amidst the propaganda.

"Individual worker productivity rises an astonishing 43 percent from 1919 to 1929. But the rewards are being funneled to the top: the number of people reporting half-million dollar incomes grows from 156 to 1,489 between 1920 and 1929, a phenomenal rise compared to other decades. But that is still less than 1 percent of all income-earners."

Another partial and biased account

North America
The economy grew by a considerably larger percentage than it did in the Great Depression. However, the recession was very short lived. Factories soon retooled and adapted to producing consumer goods. The new factories began producing products such as radios and automobiles. Women, who had entered the work force in large numbers during the war, mostly left the fields and factories, opening jobs for returning soldiers. The glut of labour also caused wages to fall dramatically. Some economists argue that this rapid decline restored economic equilibrium, but it was only possible due to weak unions and little government protection of workers. From 1922 until 1929, the North American economy showed consistent growth.

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