The Forgotten Depression: 1921: The Crash That Cured Itself

The Forgotten Depression The Crash That Cured Itself By the publisher of the prestigious Grant s Interest Rate Observer an account of the deep economic slump of that proposes with respect to federal intervention less is This is a free market

  • Title: The Forgotten Depression: 1921: The Crash That Cured Itself
  • Author: James Grant
  • ISBN: 9781451686487
  • Page: 456
  • Format: ebook
  • By the publisher of the prestigious Grant s Interest Rate Observer, an account of the deep economic slump of 1920 21 that proposes, with respect to federal intervention, less is This is a free market rejoinder to the Keynesian stimulus applied by Bush and Obama to the 2007 09 recession, in whose aftereffects, Grant asserts, the nation still toils.James Grant tellsBy the publisher of the prestigious Grant s Interest Rate Observer, an account of the deep economic slump of 1920 21 that proposes, with respect to federal intervention, less is This is a free market rejoinder to the Keynesian stimulus applied by Bush and Obama to the 2007 09 recession, in whose aftereffects, Grant asserts, the nation still toils.James Grant tells the story of America s last governmentally untreated depression relatively brief and self correcting, it gave way to the Roaring Twenties His book appears in the fifth year of a lackluster recovery from the overmedicated downturn of 2007 2009.In 1920 21, Woodrow Wilson and Warren G Harding met a deep economic slump by seeming to ignore it, implementing policies that most twenty first century economists would call backward Confronted with plunging prices, wages, and employment, the government balanced the budget and, through the Federal Reserve, raised interest rates No stimulus was administered, and a powerful, job filled recovery was under way by late in 1921.In 1929, the economy once again slumped and kept right on slumping as the Hoover administration adopted the very policies that Wilson and Harding had declined to put in place Grant argues that well intended federal intervention, notably the White House led campaign to prop up industrial wages, helped to turn a bad recession into America s worst depression He offers the experience of the earlier depression for lessons for today and the future This is a powerful response to the prevailing notion of how to fight recession The enterprise system is resilient than even its friends give it credit for being, Grant demonstrates.

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      Posted by:James Grant
      Published :2018-08-06T20:30:46+00:00

    1 thought on “The Forgotten Depression: 1921: The Crash That Cured Itself”

    1. This book can, I guess, count toward my resolution to read some more substantial works this year. But I can't say that I remember enough of my high school Economics class, nor yet the technical information from my Business Reference class, to critique the argument Grant puts forward that The Invisible Hand of the Market will right all things if in no way restricted. However, I did enjoy some of the extremely forceful language and disputation by the political figures in this book. We talk about t [...]

    2. Liked it, did not love it.Lots of promise, lots of good details, but not quite what I was hoping for.Here is my review: libertyunbound/node/1476

    3. In a back cover endorsement, Richard Norton Smith writes, "You don't have to agree with Grant's economics to admire the rigor of his thought, the grace of his prose, or the sweep of his argument" This is all exactly right. I certainly don't agree with Grant's economics. If this were the only book you were to read on the period, you would come away thinking Warren G. Harding was one of our greatest Presidents and the only thing Woodrow Wilson did right was to have a stroke. Nevertheless, the book [...]

    4. Jim Grant takes the position that the 1921 U.S. Depression was short-lived primarily because leaders at the relatively new Federal Reserve, and most political leaders of the day, were committed to fiscal rectitude and non-intervention in the economy. He does so in a very well organized and well written book that is filled with quotes and citations to primary sources such as meeting notes, speeches, correspondence and editorials. Though the book is very readable, it helps if the reader has some u [...]

    5. By Edward Chancellor“The central irony of financial crisis is that while it is caused by too much confidence, too much lending and too much spending, it can only be resolved with more confidence, more lending and more spending.” This post-crisis advice from Larry Summers - a former U.S. Treasury secretary, presidential economic advisor and president of Harvard - represents the conventional wisdom of the economic policymaking elite. This is the same elite, you may recall, that failed to see t [...]

    6. Interesting perspective - Grant is quite the hard money libertarian. I found myself asking whether the upheaval of the early 20th century (WWI, Bolshevik revolution) would justify the course of action that was taken. I mean, if everything was working so well prior to the floating money standard, why did people want to change?

    7. Brilliant. I read this book after reading a review in the WSJ and a Robert Samuelson column. It is 180 degrees opposite from the Keynesian macroeconomics that I learned in college, and a lot of it makes sense when you place it in the context of the Great Recession. It's not a long book. Read it.

    8. Grant provided evidence including quotes of officials from conferences, articles describing the situation, and economic and industry statistics. I believe he has sufficient evidence to support his overall conclusion. Although, it was a bit of a dry read. I wouldn't recommend unless you enjoy business history, because not even economics is a good classification because it doesn't talk much about economic theory.

    9. More like 2.5 stars - I kind of liked the book for its historical value in highlighting a depression rarely discussed or highlighted (at least to the degree of the Great Depression). The crux of his thesis seems to be a laissez-faire economic policy during rough economic times and that letting prices deflate and naturally take their course will help the economy recover. I guess my simple view is that theory probably wouldn't work in reality due to the sheer size of our credit books (both govt an [...]

    10. The author makes a convincing case that the economic downturn of 1920-21 was a severe depression, contrary to the arguments of some contemporary Keynesian economists. Once that question is settled, the Keynesians have a big problem, because it's undisputed that the American economy recovered briskly in 1922, despite the complete absence of government intervention. The author devotes some ink to related arguments: the gold standard was superior to central bank management, and Herbert Hoover preve [...]

    11. Grant makes the argument that allowing the boom/bust cycle to work shortened depressions and allows for a rapid recovery, although at the cost of a harsh period of bust. He points are well supported given the limited amount of hard data available. Interesting reading.

    12. Not a book many would enjoy unless you are interested in economics and the impact of Federal Reserve and government policy. Grant is clearly very bright - I did enjoy it more than I should. It'd be 2.5 stars if I could figure out how to add the 1/2.

    13. Couldn't finish this dry read that relies more on direct quoting from a century ago than actual writing.

    14. "There's hope for the Planet when even free-marketers start to recycle their own garbage."My full review here:theorangepress/woid/woid21

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