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15

Bernanke has sort of answered this question himself, in his Remarks On Milton Friedman's Ninetieth Birthday. Friedman argued that the depression was basically caused by the Fed's contractionary monetary policy, and Bernanke seems to be in broad agreement with him, going so far as to say: Let me end my talk by abusing slightly my status as an official ...


14

According to my quick reading of the Life and death during the Great Depression by José A. Tapia Granadosa and Ana V. Diez Roux, the only noticeable increase of mortality was suicide, with a noticeable decline of mortality in every other category. It's interesting that this paper was written in 2009, before the (shall we say) sensationalist Russian claim of ...


12

FDR was not the first president to come to power during a financial "panic" (aka: Recession or Depression). However, he was the first one after the advent of modern economics, and he was listening to the new economists. Economically, banning private holding of gold had the effect of propping up the US currency. Normally in hard times (and I think 1933 ...


7

Wow - it would take me a long time to find the appropriate sources to answer this the way I want to. I also feel obliged to admit that I have an opinion on this topic, and I hope that @Samuel Russell or someone from the other side of the aisle will contribute to counterbalance me. @John Craven is correct that the great depression was a complex, global ...


7

Did the Stock Market Crash of 1929 effectively cause the Great Depression? No. The stock market crash was most likely a serious contributory factor in the onset of the Great Depression. However, it did not "effectively cause" the economy to implode - there were serious pre-existing weaknesses in the late 1920s economy. In fact a recession was already ...


6

Health researchers collected data on causes of death in 114 U.S. cities during the Great Depression. Their findings confirm the impressions of many observers in the 1930s, mortality did not increase during the Great Depression: They include a table that shows trends in death rates per 100,000 population. Starvation does not appear on the list, nor does it ...


5

It is a politically charged issue and it really depends on the economic and political side of the fence you're on (T.E.D gave the Keynesian view). As someone who's libertarian on most financial/economic policies, I see it as detrimental and that we're still feeling the negative effects of it today. As Alan Greenspan put it in Gold and Economic Freedom... ...


5

I think you are forgetting that the inflation rate during WWI was staggering. The consumer price index at the end of the war was extremely high, and the deflation that you are referring to can be seen as more of a adjustment in pricing back toward pre-war levels. In fact the CPI was relatively flat through the 20s as a 10 year moving average: In 1928, ...


4

There was a period in Cuba "the sugar revolution" as it is called in Franklin W. Knight's review. Sugar industry includes large set of products, and between 1750-1850 there was a big explosion of demand for sugar. In the beginning of that period aristocracy used up most of the sugar, later in mid 19th century and especially somewhat later even the common ...


4

Because in 1928 macroeconomics hadn't been invented; until Keynes, people had odd ideas about money supply, inflation, and economic growth. Both of the other answers point to the fed's fear of liquidity. If you kill liquidity, then you kill speculation and all is well. Mundell-Tobin theory suggested that raising interest rates would raise the velocity of ...


4

The short answer is that no, Roosevelt did not lift the USA out of the Great Depression with the New Deal. The Great Depression was a world-wide phenomenon, and was not going to just go away because one government decided to do a bunch of things, however helpful those things were. The economy did begin to pick back up in the mid-30s, but it looked like it ...


3

This article seems to be an unbiased analysis of Herbert Hoover's reaction to the Crash of 1929. It paints him as a relative activist economically, by the standards of the day, but both over-hyped during the election of 1928 and overwhelmed by the sheer scale of the collapse that was occurring. It is worth remembering that he began construction of the ...


3

I discussed this exact action in a fair bit of detail in my answer to Gold Confiscation Act of 1933 . You may want to go check that out. To bring that answer full circle, taking the USA off the Gold Standard wasn't the only economic system change the US government made at that time. The Gold Confiscation Act had the effect of propping up the money supply. ...


3

I am not a Marxist Political Economist. I am a Marxist labour historian. When I relate to economic history, I can only really talk about the way in which capitalism actually functions (with reference to the truth systems of academia) from a "firm level" or "proletarian" perspective. This question would require a Marxist political economist to answer it in ...


3

Note: this answer is not a comment on the soundness/wisdom, or lack thereof, of the economic policy/theory involved. It was to reduce stock market speculation financed by loans. The Roaring Twenties were a period of strong supply-side driven growth. By the mid to late 1920s, it began to be perceived in some quarters that a speculative bubble was emerging, ...


3

Other than coffee and tobacco, the main "cash crop" for Cuba (and most other Caribbean islands) was sugar, in the 18th century. This was originally used to make rum for the so-called "triangle trade." (Sugar from the Caribbean became rum in New England or Europe, traded to Africans for slaves, taken back to the Caribbean). The industrial revolution helped ...


2

The United States did not experience famine conditions during the Great Depression. Consider that a major economic problem during the Depression was that there was too much food. This "excess" supply made food too cheap, which bit into farmers' profits. To address the "problem" of overproduction, the government paid farmers not to plant crops: The ...


2

I am writing as the author of "A Modern Approach to Graham and Dodd Investing. Published in 2004, the book discussed the 1929 crash and predicted another one (which occurred in 2008-2009). It also provided a road map of how "other events" caused the fallout from the 1929 crash to turn into the Great Depression, and why the absence of such events have (so ...


2

Boondoggle, the term in which I was looking for, came to me today when the economist Max Keiser used it on the political panel show 'Have I got News for You'. He used it in reference to the planned HS2 (high speed rail) linking London with Birmingham in the United Kingdom. On further research I found that the word was first used in 1935 in a New York Times ...


1

Percent of people living below a poverty measurement comparable to the World Bank measurement represented by $1.25/day: 50% Some two decades ago, historian Arthur M. Schlesinger Jr. lamented: "I don't know what is to be done to persuade people that the Great Depression took place. So far as I can tell, more and more Americans are coming to believe that it ...


1

President Hoover created the President's Organization on Unemployment Relief (POUR) in 1931 to generate private contributions to aid the unemployed, but by mid-1932 it closed from a lack of funds. He endorsed a few public works programs like the Grand Coulee Dam in Washington to employ laborers. The Hawley-Smoot Tariff also raised import duties on foreign ...



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