tag:blogger.com,1999:blog-6245381193993153721.post2055152649684623360..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Rothbard on the Recession of 1920–1921Lord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6245381193993153721.post-61542463599849531542015-12-01T23:15:02.458-08:002015-12-01T23:15:02.458-08:00I have thought a lot about this, and I'll addr...I have thought a lot about this, and I'll address it more when I make my blog post on the Recession of 1920 (huge thanks to you Lord Keynes for all the great info of course) and this is what I think the Austrians believe about interest rates and this recession, but don't say. <br /><br />I think Austrians believe the hike in int rates helped to liquidate the crisis even faster.<br /><br />In America's Great Depression Rothbard says what government should do is slash taxes, spending and encourage credit contraction. This last part gets me, and I never see it discussed, just the first two aspects which you and Kuehn have shown to be totally false. <br /><br />Credit contraction was a positive in Rothbard's eyes, and we know Austrians wanted all the "rottenness" to be purged out a la Mellon. <br />So I think the hike in int rates, which clearly worsened the recession, was a positive for Rothbard because it helped speed up the crash, to thus speed up recovery. <br /><br />Of course this is like treating a cold by bloodletting. Post WWII proved that if left alone, war inflation will work itself out, thus making the whole 1920 recession meaningless. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-11819808578696984382015-02-09T16:21:44.738-08:002015-02-09T16:21:44.738-08:00I found a quote from the book where Rothbard has t...I found a quote from the book where Rothbard has this to say:<br />"In the 1920–1921 depression, government intervened to a greater extent, but wage rates were permitted to fall, and government expenditures and taxes were reduced. And this depression was over in one year—in what Dr. Benjamin M. Anderson has called “our last natural recovery to full employment.”<br />So I guess he recognized the greater intervention but didn't consider it high enough to ascribe the recovery to it.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-20678772320358525522012-10-06T18:01:44.723-07:002012-10-06T18:01:44.723-07:00I recall a quote from someone who said Rothbard ad...I recall a quote from someone who said Rothbard admitted to them the 1920-21 depression was primarily monetary.<br /><br />That's all I can give you, though. Not sure who it was/whether it's accurate.Unlearningeconhttps://www.blogger.com/profile/13687413107325575532noreply@blogger.com