tag:blogger.com,1999:blog-6245381193993153721.post6526696388417465234..comments2024-03-28T17:08:15.784-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: US Monetary Policy and the Recession of 1920–1921Lord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6245381193993153721.post-89560334609753780592015-08-02T18:35:47.270-07:002015-08-02T18:35:47.270-07:00I think war has become a necessary process in the ...I think war has become a necessary process in the democracy-capitalism cycle. As institutions become dominant, politically and economically, they distort market forces, such as carriage makers. World War I ended the lives of many carriage companies that might have had extended lives otherwise. I'm sure there are similar after World War II. Total war helps us forget our institutional ties in favor of our country. When soldiers come back their traditional institutional/career ties become reset and market forces are reset. A unfortunate phenomenon. batymahnhttps://www.blogger.com/profile/14854671419363462504noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-31248842502578064612014-12-08T09:19:16.284-08:002014-12-08T09:19:16.284-08:00That is a fascinating point!
Also, the US govern...That is a fascinating point! <br /><br />Also, the US government was committed to maintaining the gold standard in 1920-1921 which seems to be a major reaosn why they wanted deflation to return to pre-war prices. Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-29825415491065132002014-12-08T09:00:53.757-08:002014-12-08T09:00:53.757-08:00Really the key point is that the government ran ma...Really the key point is that the government ran massive deficits in WW1 and this accumulated as private sector savings that could flow into the economy after the economy adjusted without management in 1920-1921.<br /><br />http://pgpf.org/sites/default/files/sitecore/media%20library/PGPF/Chart-Archive/0025_federal-debt-hist-crop.gif<br /><br />The post-WW2 adjustment was much cleaner and more successful though as it was managed.<br /><br />But there is your intervention... right there...Philip Pilkingtonnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-85490370807024378392014-12-05T12:51:58.176-08:002014-12-05T12:51:58.176-08:00David Glasner has a post on this too:
http://unea...David Glasner has a post on this too:<br /><br />http://uneasymoney.com/2014/12/05/the-nearly-forgotten-dearly-beloved-1920-21-depression-yet-again-or-never-reason-from-a-quantity-change/Philippenoreply@blogger.com