Wednesday, April 29, 2009

Why You've Never Heard of the Great Depression of 1920

I am what one would term a dilettante when it comes to economics. I'm reading, watching and listening to everything I can get my hands on to become an economic autodidact.

Due to my amateurism in this field of study, it is not surprising that I've never encountered this event before. Apparently, in 1920-21 the stock market took a nosedive worse than that of the stock market in 1929. What happened and why didn't America go tits up? Well, the country had a stroke of luck, and by stroke I mean then-President Woodrow Wilson was deposed by a massive stroke and was unable to interfere with the economy. The consequences were wholly positive. As a matter of contrast, I do not agree with everything the speaker says in the video. For example, I don't think CEOs are "geniuses." Just because they got lucky with a product doesn't make them uber-intelligent, it just makes them fortunate. But the anti-government meat and potatoes of the presentation is on the mark.

John Maynard Keynes can go munch a douche!

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