I have a correction to make in my piece Dangerous Lessons of 1937, published as a Mises Daily on 2 February 2010. The error was brought to my attention by Robert Murphy. I write:
Within that time period, the stock of money increased by 46% and the general price level by 31%.
The figure is attributed to [...]
Posts Tagged ‘Recession’
Correction on “Dangerous Lessons of 1937″
Roosevelt’s Recession of 1937
Roosevelt’s Recession of 1937, which saw the unraveling of supposed economic growth in the prior years, is oftentimes used as an historical example of what occurs when government decreases spending levels or the central bank fails to continue credit expansion. The use of this event to exemplify these things is disingenuous. More accurate lessons can be drawn, which show that only the market can fix itself.
The Dangerous “Lessons” of 1937
The recession of 1937 provides a perfect case study to offer a vision of the future based on our current fiscal and monetary policies. It turns out that high government spending and intervention, mated with an inflationary monetary policy, caused the severe downturn of 1937. We are headed down that same road.
Truth Behind Unemployment
“Good news” from the Obama administration. Unemployment fell from 10.2% to 10%! According to the Wall Street Journal, unemployment fell despite the fact that there was a net loss of eleven thousand (11,000) jobs in November. Only in modern, mainstream economics can there be a net loss in employment, and yet a decrease in unemployment. [...]
Did Protectionism Cause the Great Depression?
The debate on whether or not the Smoot-Hawley Tariff directly contributed to the Great Depression and/or worsened the industrial decline remains alive and well. Paul Krugman does not believe that the Smoot-Hawley Tariff had a major effect. It did, and it should be studied and the lessons applied to current political trends.
Don’t Be Fooled by GDP
Third-quarter data for 2009 is misleading, because most of the growth in GDP is only temporary and will cost us the same, or more, in the near future. Economic prognostics should not be based on GDP data, but on sound economic theory.
Trend of Impending Poverty
Foreign central banks are keeping interest rates low in an attempt to devaluate their own currency, as to force the exchange rates to remain relatively stable in comparison to the U.S. Dollar. While the United States slips into the worst recession in history, the rest of the world seems happy to follow.
A New Perspective on Roosevelt’s Recession of 1937
From the essay “The Dangerous “Lessons” of 1937. Roosevelt’s Recession of 1937 may be more relevant to the current financial situation in the United States than the Crash of 1929. This is because we may be headed in the same direction.
False Hopes in Unemployment
It seems surprising that a publication with the reputation of the Economist would include itself amongst the dozens of sources which suggest that a slight drop in unemployment figures signals the near-end of the recession. First, the economist who wrote that article obviously has not studied the history of unemployment during the Great Depression, because if he had he would have been more wary of making such proclamation without stronger evidence to support his thesis.
Lending Regulation is Counterproductive
The mainstream has pointed its finger on the apparent lack of regulation, and therefore calls for an increase in regulation on lending for the purpose of selling houses. These regulations will make the accumulation of wealth that much more difficult. We are being condemned to a road to serfdom
