The Gold Standard and the Great Depression

Discussion in 'Economy' started by Toro, Oct 13, 2009.

  1. Toro
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    Toro Diamond Member

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    As countries abandoned the gold standard during the Depression, they began to grow again. The longer countries waited to leave the gold standard, the longer they waited for growth to resume.

    Modified goldbugism at the WSJ - Paul Krugman Blog - NYTimes.com
     
  2. Elutherian
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    Elutherian BadMother****er

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    It might have worked well for them in the short run, but in the long run they all got f*cked over.

    Paper ain't money. I'm not so hung up on Gold as I am commodity currency. You can't print prosperity.
     
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  3. Mike Mitrosky
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    Mike Mitrosky Member

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    You know the old saying...

    Gold is the currency of Kings
    Silver is the currency of Free Men
    And Debt is the currency of slaves...

    Right now debt is our currency.. so we're all slaves.
     
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  4. xsited1
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    xsited1 Agent P

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    :lol: :lol: :lol:

    Thank you for the graph. This made my day. What an awesome example of twisting data to attempt to prove a point. It's textbook! I sometimes go to the Paul Krugman blog to have a good laugh, but I hadn't seen this.

    On a serious note:

    In a study covering many decades in a large sample of countries, Federal Reserve Bank economists found that "money growth and inflation are higher" under fiat standards than under gold and silver standards. Nor is the gold standard a source of harmful deflation.

    Money, inflation, and output under fiat and commodity standards

    Here's a chapter from a book (The Gold Standard: Perspectives in the Austrian School By Llewellyn H. Rockwell, Jr.) that should be required reading on the subject of the Gold Standard.

    The Gold Standard: Perspectives in ... - Google Books
     
  5. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    Wow, debasing the currency lowers real incomes, which then means that businesses can hire more people?

    I wonder what Krugman's take is on the depression of 1921? The one that was as bad as the great depression, only it was over in 2 years without inflating the currency.
     
  6. The Rabbi
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    The Rabbi Diamond Member

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    It makes perfect sense. With a gold standard you get a severe capital shortage since capital is artificially limited by the amount of gold available. More capital generally means more ability to build productive assets, like factories and the like.
    Lew Rockwell is a quack.
     
  7. Mike Mitrosky
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    Mike Mitrosky Member

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    With this same logic we should just make a new minimum wage law of $100 an hour right?

    That would cure everybodys' money problems...

    HA HA!
     
  8. xsited1
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    Read the links. The data is sound. The authors of the reports I mentioned are not Lew Rockwell if that makes you feel any better.
     
  9. Elutherian
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    Elutherian BadMother****er

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    Capital is supposed to be limited to the amount available. What, you think money just grows on trees... hell you don't even think that, it would be too limited to the amount of trees available. You just want money and prosperity to appear out of thin air.

    Some things people say are just ingorant.
     
  10. Mike Mitrosky
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    Mike Mitrosky Member

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    Ive never heard that before.. Thats awesome.. Im gonna have to remember that one.

    :clap2::clap2:
     

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