The Real Lessons of the Great Depression

Discussion in 'Education' started by Kevin_Kennedy, Apr 19, 2009.

  1. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    The Real Lessons of the Great Depression by Bob Murphy
     
  2. tigerbob
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    tigerbob Increasingly jaded.

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    Your post is meant to indicate that Hoover increased spending significantly and it didn't work, and therefore history provides a precedent for Obama's policies not working? Correct?
     
  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Well my post was a referral to an article written by Robert P. Murphy, who wrote the article to promote his new book The Politically Incorrect Guide to the Great Depression and the New Deal. But yes, I intend for people to look back at history and see that massive government spending only helped to prolong and worsen the Great Depression and that we are allowing history to repeat itself in our present economic downturn. That being said, what I intend and what I expect are two different things. I expect to be called a revisionist and to be told that I am wrong.
     
  4. Toro
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    Toro Diamond Member

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    The argument is disingenuous. It was only in the last year of Hoover's term did the deficit rise appreciably. From this book

    [ame=http://www.amazon.com/Anatomy-Bear-Lessons-Streets-Bottoms/dp/1905641575/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1240245348&sr=8-1]Amazon.com: Anatomy of the Bear: Lessons from Wall Street's Four Great Bottoms: Russell Napier: Books[/ame]

    The deficit never rose above 1% of GDP until 1932. It wasn't until 1932, the bottom of the Depression, did the deficit rise over 4% of GDP.

    I briefly looked on the Internet to find something visual, and this is all I could find for the moment.

    [​IMG]

    EH.Net Encyclopedia: The United States Public Debt, 1861 to 1975

    As you can see, total public debt barely moved from 1927 to 1932. It wasn't until 1932 when the debt began to rise.

    Edit: Here is some more

    [​IMG]

    [​IMG]

    [​IMG]

    As you can see, it was only in 1932 when the government began heavily financing the deficit. Before that, after the economy had collapsed, the government hardly did anything at all.

    The author's own facts could be used against him in his argument.

    There is a lot of ideological revisionism going on.
     
    Last edited: Apr 20, 2009
  5. Old Rocks
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    Old Rocks Diamond Member

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    Once again Kevin get's ideology whacked by facts. One might notice the line from 1992 to 2000. And the slope of the line appears not to have changed with the inauguration of President Obama.
     
  6. xsited1
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    xsited1 Agent P

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    Are you talking about this?

    Not knowing what you're referring to, I'll just comment about the above quote. Here is the data:

    Year GDP-US Federal Deficit-fed
    1930 91.2 -0.87
    1931 76.5 0.13
    1932 58.7 1.63

    Federal Spending, State and Local Public Spending 1792-2014 - Charts
     
  7. midcan5
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    midcan5 liberal / progressive

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  8. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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  9. manu1959
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    manu1959 Left Coast Isolationist

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    actually no.....the claim is he didn't spend enough....which is why bush / obama are spending like they are.....
     
  10. Toro
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    Toro Diamond Member

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    Generally no and definitely no.
     

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