tag:blogger.com,1999:blog-4900303239154048192.post1804899024191239563..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Does The 1920-21 Recession Really Prove That Laissez Faire Saves Us From Recessions?Unknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4900303239154048192.post-56190337243712335472012-02-14T09:03:05.169-05:002012-02-14T09:03:05.169-05:00You mention the decline in interest rates and clai...You mention the decline in interest rates and claim they were important in ending the depression. However, I have read that the interest rates were high (6-7%) until the middle of 1921, and then they dropped a little each month after that. Given that the depression was over in August 1921 (if I remember correctly), it's hard to see how dropping interest rates would have had any significant effect. Please correct me if I am wrong.Chili Dogghttps://www.blogger.com/profile/08250629953956092066noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-24623115902734262192011-02-10T17:16:51.003-05:002011-02-10T17:16:51.003-05:00http://ia700306.us.archive.org/5/items/wagesandhou...http://ia700306.us.archive.org/5/items/wagesandhoursin00boargoog/wagesandhoursin00boargoog.pdf<br />Barkley Rosser,<br />I just finished reading this book. I don't see any increase of wage rates.<br />Oh, and about discount rate.<br />http://img33.imageshack.us/i/discountrates1920depres.png/MHhttps://www.blogger.com/profile/10656881172906444719noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-79863480179959722052010-11-21T03:30:20.245-05:002010-11-21T03:30:20.245-05:00A fascinating post.
Over how many sectors of the e...A fascinating post.<br />Over how many sectors of the economy does the wage data you refer to cover? (in the National Industrial Conference Board data)<br /><br />Here is my take on the recession of 1920-1921:<br /><br />http://socialdemocracy21stcentury.blogspot.com/2010/10/us-recession-of-19201921-some.htmlLord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-28820320615753224802010-11-14T06:16:01.255-05:002010-11-14T06:16:01.255-05:00Hi Barkley - you might be interested in a paper of...Hi Barkley - you might be interested in a paper of mine that recently got accepted to the Review of Austrian Economics on the 1920-21 downturn: http://www.springerlink.com/content/5683j4v650187261/<br /><br />As I mentioned on Coordination Problem, all the evidence I had when writing this suggested declining wages over this period (although as you note, the decline still wasn't as sharp as the price decline). Enjoy.Danielhttps://www.blogger.com/profile/17192667997950934790noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-71661564301489833352010-11-09T09:01:40.551-05:002010-11-09T09:01:40.551-05:00Here's the link for income inequality.
http:/...Here's the link for income inequality.<br /><br />http://polarizedamerica.com/<br /><br />Scroll down to 2nd graph.<br /><br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-43404021914132217982010-11-09T08:57:59.579-05:002010-11-09T08:57:59.579-05:00Shag - the regulation put in during the depression...Shag - the regulation put in during the depression were a reaction to the non regulation of the 20's.<br /><br />For income disparity, check here and scroll down to the top 1% Income share chart.<br /><br />In those respects, the 20 were a lot like the past decade.<br /><br />Th major fundamental difference between 20-21 and the GD is that 20-21 was caused by excess supply of goods, services and labor - the post hints at this - while 29 on was a failure of aggregate demand just like now.<br /><br />Denialists refuse to recognize that context matters, and policy needs to change with circumstances.<br /><br />Cheers!<br />JzBJazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-48797292169242529252010-11-09T07:37:04.365-05:002010-11-09T07:37:04.365-05:00To what extent did the lack of financial regulatio...To what extent did the lack of financial regulation during the 1920s contribute to Hoover's 1929? If 1922-28 were the good old days, for whom were they the good old days? What did income inequality look like in those good old days?Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-21305307949310194642010-11-08T23:54:59.386-05:002010-11-08T23:54:59.386-05:00The depressions of 1920-21 and 1929-on occurred i...The depressions of 1920-21 and 1929-on occurred in very different circumstances. My cursory check uncovered this list:<br /><br />1920 preceded by large deficits, 1929 preceded by surpluses.<br /><br />1920 preceded by high inflation, <br />1929 preceded by no inflation.<br /><br />1920 preceded by war, <br />1929 preceded by peace.<br /><br />1920 depression possibly softened by export strength. <br />1929 ???<br /><br />1920 evidently not near the 0-interest rate bound, <br />1929 probably approaching it.<br /><br />1920 gold standard not in force, 1929, gold standard in force.<br /><br />During the 1920-1 depression, deflation was a local U.S. phenomenon. Europe was experiencing inflation, and Austria had hyperinflation.<br /> <br />In the 1929 depression, deflation was a nearly world-wide phenomenon.<br /><br />Every bit of this gets ignored by Austerians and New Deal denialists. <br /><br />Some of this is probably more important than the rest. I find the gold facts to be especially intriguing. There are probably more differences than can be discovered 20 minutes of fumbling around on the intertubes. That's <br />about how log this took.<br /><br />They're now making the same claims about post WW II, too, BTW.<br /><br />http://mercatus.org/publication/us-postwar-miracle<br /><br />Cheers!<br />JzB!Jazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.com