Molson Hart

Read through the Wikipedia article on the Great Depression yesterday night. In short, we’re not really sure what caused it and we’re somewhat unclear about what stopped it, though expansion of monetary supply and then WW2 seemed to have done the job.

10 years of massive pain and the economic discourse is confused and in disagreement. Pretty wild. Says a lot about nebulousness of macroeconomics.

Fascinating that Wiki is that off. I think the consensus is clear that the government has to step in, fix any structural problems, borrow and spend when no one else will to jumpstart things. (Our structural problem is people are worried this is Walking Dead IRL of course.)

Wasn't exactly a light switch, though. Treasury Sec &New Deal architect Henry Morgenthau Jr.,1939: -“We have tried spending money. We are spending more than we have ever spent before & it does not work....just as much unemployment as when we started...and enormous debt to boot!”

True! I read that. If morgenthau jr saw what we did during the gfc I think he’d shit his pants. If he saw COVID19 he’d explode. Correct me if wrong but their actions paled in comparison to recent QE etc

I believe New Deal was 40% of GDP and the programs were long-lasting more than one-off.