The Great Depression - Professor Chesterton

"Many volumes have been written about the Great Depression of 1929-1941 and its impact on the lives of millions of Americans. Historians, economists and politicians have all combed the wreckage searching for the "black box" that will reveal the cause of the calamity. Sadly, all too many of them decide to abandon their search, finding it easier perhaps to circulate a host of false and harmful conclusions about the events of seven decades ago. Consequently, many people today continue to accept critiques of free-market capitalism that are unjustified and support government policies that are economically destructive."
- Lawrence W. Reed

Text based on the essay "Great Myths of the Great Depression"
http://www.fee.org/articles/great-myths-of-the-great-depression/

Published by the Foundation for Economic Education
FEE's Website: http://www.fee.org/
FEE's Facebook page: http://www.facebook.com/feeonline

Written, Illustrated, Produced and Read by Professor Chesterton

© Chesterton Cobb, January 2012

Contact Professor Chesterton at: professorchesterton@gmail.com

Factual Correction: By "Roosevelt loses the next election" I mean "Roosevelt died in office."

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[falconplayer11able]

How did the government remove 1/3 of the money in the economy? It would be helpful to explain this in the video.

[professorchesterton]

@falconplayer11able (2/2) “The central bank took further deflationary action by aggressively selling government securities for months after the stock market crashed. For the next three years, the money supply shrank by 30 percent. As prices then tumbled throughout the economy, the Fed’s higher interest rate policy boosted real (inflation-adjusted) rates dramatically.”

[professorchesterton]

@falconplayer11able The essay explains: (1/2) “The central bank presided over a dramatic contraction of the money supply that began late in the decade. … By 1928, the Federal Reserve was raising interest rates and choking off the money supply. For example, its discount rate (the rate the Fed charges member banks for loans) was increased four times, from 3.5 percent to 6 percent, between January 1928 and August 1929.”

[loomerlol]

Now, which election did FDR lose again?

[SpaceJake]

This entire video is full of fantasy land bullshit and FDR never lost an election.

[HardWarUK]

Capitalism nowaday is make your customers poor so they cannot buy anything...... An Oxymoron if I ever saw it - and we all know that oxymoron obviously means "giving oxygen to morons"!

[PlutoniumProductions]

also lol at 3:25 "these jobs destroy wealth". "[paying people to work on infrastructure] is in effect paying people not to find [nonexistent] jobs." lmao

[PlutoniumProductions]

hmm yes the solution to a deflation spiral is to deflate the economy and to deflate the dollar. stronger money is better money. fdr killed piglets!! what no i'm not 12 wait come back

[falconplayer11able]

@MrDANNYUNDERWOODky Chill out. I'm in total agree with you and know a good amount about this issue. I was just giving the author of the video a suggestion.

[MrDANNYUNDERWOODky]

@falconplayer11able money wage slave system. and we have been suffering under its yoke since 1913. And even longer in europe. Just know this, all money is created out of debt, to pay off the national debt, would be to extinguish our money supply. and if banks create all the money from debt, and they only lend principle, Where does the money to pay the interest come from? More debt, and more loans, that is the scam of the never ending debt money system fraud.

[MrDANNYUNDERWOODky]

@falconplayer11able answer to that question, do not be discouraged, you are in good company with about 85% of the American public who also does not know. It is forbidden for monetary policy or creation of money to be taught in schools. We are on the verge of a complete monetary collapse, in the US and europe. because of so called debt. but who do we owe all this money to? the same private banks we just borrowed from to bail out, shockingly, yes. the monetary system is a fraud,its called the debt

[MrDANNYUNDERWOODky]

@falconplayer11able like the parasites they are, off the hard work and production of the 99%. If you want the whole and complete story of the central banksters fraudulent existence on this planet, type in "The Money Masters' by Bill Still, it is a concise 2000 yr history of money. If you do watch it, please let me know what you thought of it. I have been trying to spread the word as much as possible. How is money created? is the MOST important question one can ask. If you do not know the

[MrDANNYUNDERWOODky]

@falconplayer11able money into gold right before the "crash", gee,what a stroke of luck that was! And just like now, with the tech bubble in the 90's the housing bubble, and now the student loan bubble, the wealthy banksters create bubbles, then burst them, therefore stealing the hard work of others when they buy up whats left for pennies on the dollar. banlers are the richest men in the world, why? They create nothing, the contribute nothing to society, they perform no vital service, they live

[MrDANNYUNDERWOODky]

@falconplayer11able the legs out call in loans and crash the system thus making it possible for them to buy up businesses for pennies on the dollar, then once they consolidate thier power and wealth, they make their gold money plentiful again, thus spurring growth, and the cycle begins anew. depressions are man made, they dont "just happen" as the "business cycle" implies. What he didnt say was Rockeffeler, jp morgan, the warburgs, "just happened" to get out of the stock market and put their

[MrDANNYUNDERWOODky]

@falconplayer11able the government didnt, the federal reserve did. this video is crap. the fed had 30 billion to lend nazi germany, but no money to put into the US money supply. just as shell shock, was replaced by combat fatigue, replaced by post traumatic stress disorder, the business cycle, was the fleecingof the flock, and originally called rowing the economy, back in the days of gold coin, the goldsmiths, (bankers) could make money plentiful, therefore growht would occur, then they kick