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Politics : Right Wing Extremist Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (20121)	11/15/2001 4:55:12 PM
From: Neocon	Read Replies (1) \| Respond to of 59480

The most convincing account of the Great Depression that I have ever read is Milton Friedman's. He regards it as simply a massive credit crisis, producing a rapid deflation, as banks failed and nations stopped debt payments. He blames the Federal Reserve, which had been created before WWI, for failing to act quickly enough to bolster liquidity and prevent the tidal wave of bank runs. A big deflation of the currency makes credit difficult, thus decreasing business activity and capital borrowing (for example, for houses and cars), and starting the slide into over- capacity and lay- offs. Those who had jobs did pretty well, as prices declined, and more jobs might have been saved had wages declined proportionately. Instead, jobs were lost partially to sustain wages. I knew a guy who had a modest job during the Depression. He never had it as good, because of his buying power.......