Depression

[@jasonslowiak7546]

Your lectures are wonderful! I think this period is the most important of the 20th century by far creating the great evils of our time

[@ahmedbellankas2549]

Hayek's view is not a new classical view, but an austrian view (austrian business cycle theory ), and the austrian view might talk about crowding out but that's not the essential part, the essential part is that monetary expansion lowers artificially interest rates ,that is we no more have pure interest rates and that implies that we have misinformation about the individuals acts for the economic affairs, and that implies a failure of coordination and malinvestement. New classicals are real business cycle theorists. Frideman's theory and keynes theory are both aggregate demand theories, the difference is that frideman thinks monetary contraction is the culprit while keynes thinks that animal spirits are the cause. Maybe the austrians and the new classicals agree on the remdies,but they adhere to different economic schools of thought. By the way the song is really explaining the ideas of both economists.

[@craigbenz4835]

The REA is still in business today. Why?

[@jeffneptune2922]

You could argue if the current FDR /LBJ welfare state with it's "social safety nets" were in place after a series of serious market crashes began to effect the economy in the early 30s, the Great Depression never would have happened . Ironically, Trump strongly echoed FDR when he supported and signed the massive government "stimulus" to deal with the economic effects of the pandemic. So called supply side economists like Mnuchin, Kudlow and Moore praised this action, shameless hypocrites. I guess they had a collective vision of modern day "Hoovervilles" popping up across the country. Hoover may or may not have been a "progressive" but he certainly didn't believe in any direct government help for people.