You're president during the Great Depression

[John Dibble]

Wait for WWII to start so it can fix the economy.

Actually, it is a myth that wars fix the economy.  There was an economist, Louis Bastiat, who explained the "broken window fallacy".

Imagine yourself as a small business owner.  There is a kid that throws a rock at your window and breaks it during the night.  Now you need to fix it, so you hire someone to fix the window for you.  Now this person has a job, and that's a good thing, but the money you spent on hiring this person could have gone to other investments for your company.  Similarly, a president may have a plan to put people to work for their war, but they are also spending a lot for the war that could have been spent better.  Then, they'll probably tax us harder for the cost of war.

Well, yes. I understand that completely - but there was a slight difference when it came to WWII and the U.S., at least in my opinion. Very little got broken on our side - unlike Europe, the U.S. remained for the most part untouched, but there was still a large need for manufacturing and workers to fill them. Of course, modern wars don't have the same effect - we concentrate more on the quality of our battle units than the quantity.

[David S]

If I was the president at the time I probably would have asked congress to repeal the Federal Reserve Act  and the Smoot Hawley tarriff right away.
At the beginning of the depression, 1930, government spending amounted to about 3-4% of GDP so clearly our economy was mostly dependent on private business. I would  have invited business owners from around the country to tell me what they would need to get their business' moving again. (Calls for laws to stifle competition would be ignored) I would also work to reduce regulations and taxes to spur the economy.

Yes you can spur the economy by printing tons of paper money but that practice is inflationary and is the exact reason why a dollar today can only buy as much as nickle could buy in 1913.

[A18]

The first thing I'd do is hang the chairman of the Federal Reserve for decreasing the money supply by over a third while they should have been expanding it.

Poor monetary policy turned a recession into a depression.

[Richard]

The first thing I'd do is hang the chairman of the Federal Reserve for decreasing the money supply by over a third while they should have been expanding it.

Poor monetary policy turned a recession into a depression.

Can the president issue executive orders ordering the death of people?  Probably not.  In that case, bad conduct as this may be, I'd order some CIA agent to make sure all of the Federal Reserve management employees have some unfortunate accidents.

[True Federalist (진정한 연방 주의자)]

I'd order some CIA agent to make sure all of the Federal Reserve management employees have some unfortunate accidents.

Considering that neither the CIA nor its predecessor, the OSS existed during the Great Depression, that would really be a trick.

[PBrunsel]

Exactly what Hoover did, minus the Hawley-Smoot Tariff.

[The Duke]

The first thing I'd do is hang the chairman of the Federal Reserve for decreasing the money supply by over a third while they should have been expanding it.

Poor monetary policy turned a recession into a depression.

Step one- Print more money to fund bank bailouts, thus simultaneously eradicating deflation and resotring lost assets.  The amountof money printed would be calibrated to bring inflation to 3-4%, and if we fall short of the money needed to pay back people's lost assets, we borrow to pay it back.

[cwelsch]

Block the tariffs, legalize booze and encourage economic production.  I'd forgo the minimum wage, which no doubt WORSENED unemployment.  It was boosted production that brought the US out of the depression.  FDR had nothing to do with it - he just made people feel good.

People forget that the US had fairly serious depressions every few decades starting with Jackson's removal of the Bank of the US.  We didn't need socialism any of those times, either.

FDR ought to be renamed President Placebo.

[The Duke]

Block the tariffs, legalize booze and encourage economic production.  I'd forgo the minimum wage, which no doubt WORSENED unemployment.  It was boosted production that brought the US out of the depression.  FDR had nothing to do with it - he just made people feel good.

People forget that the US had fairly serious depressions every few decades starting with Jackson's removal of the Bank of the US.  We didn't need socialism any of those times, either.

FDR ought to be renamed President Placebo.

The Depression led to unprecedented rates of deflation and unemployment.  It was hardly just another in a series of periodic recessions.

[David S]

Block the tariffs, legalize booze and encourage economic production.  I'd forgo the minimum wage, which no doubt WORSENED unemployment.  It was boosted production that brought the US out of the depression.  FDR had nothing to do with it - he just made people feel good.

People forget that the US had fairly serious depressions every few decades starting with Jackson's removal of the Bank of the US.  We didn't need socialism any of those times, either.

FDR ought to be renamed President Placebo.

The Depression led to unprecedented rates of deflation and unemployment.  It was hardly just another in a series of periodic recessions.

In prior depressions we didn't have the Federal Reserve. It should be noted that the greatest depression in our history began only 16 years after the Fed was created. The Fed increased the money supply for quite a few years prior to 1929. Much of that money ended up in the stock market which drove the market to historically high price to earning ratios. Then the Fed began to tighten the money supply which may have triggered the crash of 1929.

Banks loan out more money than they actually have, (a policy sanctioned by the Fed) so when people begin to withdraw their money, the banks will quickly exhaust their reserves and be unable to pay the depositors. Then you have bank failures and then disaster.

[A18]

The first thing I'd do is hang the chairman of the Federal Reserve for decreasing the money supply by over a third while they should have been expanding it.

Poor monetary policy turned a recession into a depression.

Step one- Print more money to fund bank bailouts, thus simultaneously eradicating deflation and resotring lost assets.  The amountof money printed would be calibrated to bring inflation to 3-4%, and if we fall short of the money needed to pay back people's lost assets, we borrow to pay it back.

Point to this post?

[The Duke]

The first thing I'd do is hang the chairman of the Federal Reserve for decreasing the money supply by over a third while they should have been expanding it.

Poor monetary policy turned a recession into a depression.

Step one- Print more money to fund bank bailouts, thus simultaneously eradicating deflation and resotring lost assets.  The amountof money printed would be calibrated to bring inflation to 3-4%, and if we fall short of the money needed to pay back people's lost assets, we borrow to pay it back.

Point to this post?

To demostrate that I agreed with you.

[David S]

Exactly what Hoover did, minus the Hawley-Smoot Tariff.

What would you have done? I don't think you've told us.

[A18]

Exactly what Hoover did, minus the Hawley-Smoot Tariff.

What would you have done? I don't think you've told us.

He says he'd do what Hoover did. In other words, massive tax increases and more government spending.