Thomas Woods Speech at Mises: "Why You've Never Heard of the Depression of 1920"

[Knightskye]

http://www.youtube.com/watch?v=czcUmnsprQI

He's funny and educational. :)

[Unspun]

It's interesting, but I wonder if he's read Rothbard's "America's Great Depression". I'm sure he has, but I ask because in it Rothbard recognized that the Federal Reserve kept interest rates low and expanded the monetary supply greatly during these years which Rothbard recognizes helped only temporarily, and they kept doing it off and on through the entire 1920's during Coolidge's term as president as well, and that Harding and Coolidge and most within their administration supported the policies. Ironically one of the only members of the administration skeptical was Harding's Secretary of Commerce, and soon to be President, Herbert Hoover. Rothbard noted that these policies were what lead up to The Great Depression.

[Joe3113]

It's interesting, but I wonder if he's read Rothbard's "America's Great Depression". I'm sure he has, but I ask because in it Rothbard recognized that the Federal Reserve kept interest rates low and expanded the monetary supply greatly during these years which Rothbard recognizes helped only temporarily, and they kept doing it off and on through the entire 1920's during Coolidge's term as president as well, and that Harding and Coolidge and most within their administration supported the policies. Ironically one of the only members of the administration skeptical was Harding's Secretary of Commerce, and soon to be President, Herbert Hoover. Rothbard noted that these policies were what lead up to The Great Depression.

Rothbard is the guy who taught Woods.

[NightOwl]

It's interesting, but I wonder if he's read Rothbard's "America's Great Depression". I'm sure he has, but I ask because in it Rothbard recognized that the Federal Reserve kept interest rates low and expanded the monetary supply greatly during these years which Rothbard recognizes helped only temporarily, and they kept doing it off and on through the entire 1920's during Coolidge's term as president as well, and that Harding and Coolidge and most within their administration supported the policies. Ironically one of the only members of the administration skeptical was Harding's Secretary of Commerce, and soon to be President, Herbert Hoover. Rothbard noted that these policies were what lead up to The Great Depression.

Listen to the speech, though. The Fed didn't even start open market operations until 1922, by which time the depression of 1920 was over. The vast bulk of the credit expansion you're thinking of began in 1927.

[Unspun]

Listen to the speech, though. The Fed didn't even start open market operations until 1922, by which time the depression of 1920 was over. The vast bulk of the credit expansion you're thinking of began in 1927.

From "America's Great Depression" first page of chapter 5 page 137:

"The first inflationary spurt, in late 1921 and early 1922--the beginning of the boom--was led, as we can see in Table 7, by Federal Reserve purchases of government securities. Premeditated or not, the effect was welcome. Inflation was promoted by a desire to speed recovery from the 1920-1921 recession. In July, 1921, the Federal Reserve announced that it would extend further credits for harvesting and agricultural marketing, up to whatever amounts were legitimately required. Soon, Secretary Mellon was privately proposing that business be further stimulated by cheap money."

[NightOwl]

From "America's Great Depression" first page of chapter 5 page 137:

"The first inflationary spurt, in late 1921 and early 1922--the beginning of the boom--was led, as we can see in Table 7, by Federal Reserve purchases of government securities. Premeditated or not, the effect was welcome. Inflation was promoted by a desire to speed recovery from the 1920-1921 recession. In July, 1921, the Federal Reserve announced that it would extend further credits for harvesting and agricultural marketing, up to whatever amounts were legitimately required. Soon, Secretary Mellon was privately proposing that business be further stimulated by cheap money."

My point exactly. By "late 1921," the recovery from the depression of 1920 was already under way, as Benjamin Anderson and other free-market economists have noted.

[Kludge]

Thanks for the link. I'm about 25 minutes in now. :)

[Knightskye]

Thanks for the link. I'm about 25 minutes in now. :)

I had it bookmarked at 15:30. Now I'm at the 25 mark.

[Knightskye]

Helpful to note this depression in an argument about economic recessions and government intervention.