What Caused the Great Depression?

Another video that's "exactly what it says on the tin." We've been talking around the Great Depression in so many videos, covering bits here and there, that I thought it deserved its own video.

Category:

Education

Tags:

• economics
• great
• depression
• causes
• federal
• reserve
• gold
• standard
• free
• market
• jp
• morgan
• woodrow
• wilson
• warren
• harding
• herbert
• hoover
• fdr

[johnrainrules]

@sfhkjgd11what "have you seen the wikipedia article tying the depression to the gold standard. "

That's hilarious. Did you see what happened when I actually read the studies you put up as supporting your stimulus? Do you ever actually do any research before talking out of your ass?

[shanedk]

@sfhkjgd11what Let's just look at it more simply:

People go into debt with 30-year mortgages on their homes. Then there's a recession. Are you REALLY saying that the recession won't end until ALL of these mortgages--and any others taken out in the meantime--are ALL PAID BACK???

[shanedk]

@sfhkjgd11what "So given this "name ONE" challenge, I think I met it."

Except you didn't. You mindlessly regurgitated study citations without understanding what they said.

Besides, that WASN'T the challenge. Here is what I said: "Can you find an ACTUAL AUSTRIAN ECONOMIST predicting hyperinflation before 2012? Can you find ANY support for your claim that the stimulus protected jobs other than a correlation fallacy?"

So not only have you NOT done this, you're STILL A LIAR!

[shanedk]

@sfhkjgd11what Except clearly it hasn't! At the end of the graph total debt is about 10 percentage points higher than at the start! And he's also using the bogus GDP metric so you're NOT looking at total debt, but debt as a percentage of GDP, which FELL at the time! He DELIBERATELY chose a metric that would make it look as if the debt wasn't growing by as much as it was. It's COMPLETE BULLSHIT.

[shanedk]

@sfhkjgd11what Complete bullshit, covered in the video too. The gold standard was abrogated from the start--it's why the banks failed!

[sfhkjgd11what]

@shanedk Just to be clear, in the graph, the red doesn't overlap the blue, rather the red is added on top of the blue. So the graph shows that the total amount of debt (red+ blue) is pretty much the same throughout the decade, the only difference is that, in the recession, the blue fell and the red increased at such a rate that Red+Blue was still the same, but the composition different.

So the idea is that government debt has replaced private sector debt almost $ for $.

[sfhkjgd11what]

@shanedk "Your logic isn't even VALID, much less sound! (You DO understand the difference, right?)"

Actually I don't, so why don't we just save some time and you explain to me what conclusions can be reached assuming #1 and #2 are true, rather than this "go learn for yourself" stuff okay?

[sfhkjgd11what]

@johnrainrules "I see, you took this from a Washington Post article and listed all the ones that claimed it did work while not listing all the ones that claimed it didn't."

True, but you need to understand the context. Shanedk asked me to find ONE study that said the stimulus created jobs; I never said that there weren't any studies saying that it killed jobs, but he certaintly implied that there was no evidence it created any.

So given this "name ONE" challenge, I think I met it.

[sfhkjgd11what]

@shanedk have you seen the wikipedia article tying the depression to the gold standard. The sooner a country got off the gold standard the quicker it recovered.

[shanedk]

@johnrainrules They remind me more of court astrologers, who would always predict that what the King did was well and good and would bring prosperity. Any astrologer who predicted that the King's actions would fail would be executed!