The Great Depression

[David S]

See this informative link.

http://www.mackinac.org/article.asp?ID=4013

That was a great article States. It certainly shows FDR in a different light. Thanks for the link.

[muon2]

It is an interesting view, and one that should get more exposure. What is interesting, as well, is that  the view is not new. I read similar pieces about the Great Depression when I was in college in the 1970's, yet they remain academic works and not in the mainstream.

[A18]

There were a number of factors, but without a doubt the one that transformed the Depression of 1929 which would have been an ordinary enough recession into the Great Depression was the Smoot-Hawley Tariff Act.

Do you think Hoover would have won reelection had he not signed that?

It would have depended on how long the Depression lasted.  If it lasted into 1932, then probably not.  If it ended by 1931, he probably would have been.  Without Smoot-Hawley, the depression would have been over by '32 at the latest in my opinion.

I think the death of Benjamin Strong is what cost Hoover re-election.

[KillerPollo]

There were a number of factors, but without a doubt the one that transformed the Depression of 1929 which would have been an ordinary enough recession into the Great Depression was the Smoot-Hawley Tariff Act.

Do you think Hoover would have won reelection had he not signed that?

No, the Bonus Army killed Hoover's chances for reelection.

Hoover set up us the bomb on Wall Street

[PBrunsel]

There were a number of factors, but without a doubt the one that transformed the Depression of 1929 which would have been an ordinary enough recession into the Great Depression was the Smoot-Hawley Tariff Act.

Do you think Hoover would have won reelection had he not signed that?

No, the Bonus Army killed Hoover's chances for reelection.

Hoover set up us the bomb on Wall Street

That was Andrew Mellon's fault. He ignored then Secretary of Comerce Herbert Hoover's cried for reform. The ending of insider trading and other ways of "artificially" boosting stocks was to be neded under the Hoover Wall Street Plan. Anything Joe Kennedy did on Wall Street would effectively be ended.

Hoover gave his plan to Mellon, Harding, and Coolidge, but they all dismissed it. Had they listened to Hoover, the Stock Market would have been stable.

[Max Power]

FDR extended the depression. He turned a regular recession style economy into a full blow depression. And thats not even including his horrificly socialist policies and fascist NRA.

You're right! The National Rifle Association is fascist!

[The Duke]

The stock market crash was caused by the holding companies, but the Depression was acused by a contracting money supply.

[DanielX]

Slash taxes and tariffs, implement limited public-works projects, keep the money supply fairly loose, and make sure the federal budget runs a very slight deficit.  And hope for the best .

[PBrunsel]

Slash taxes and tariffs, implement limited public-works projects, keep the money supply fairly loose, and make sure the federal budget runs a very slight deficit.  And hope for the best .

Neither Hoover nor FDR did this. That is because all politicians of the 1920's and 130's belived that you keep employment and production up by having a high tariff (limiting foreign competition on American industry) and by creaing a balanced budget (even if raising taxes is needed). It seems silly now, but that was the general financial plan of Mellon,. Hoover, and FDR.

[Bono]

The stock market crash was caused by the holding companies, but the Depression was acused by a contracting money supply.

Actually, monetary contraction is harmless if the market can have room to make the necesary adjustments.
But thanks to Hoover and FDR's 'stabilization' policies, the wages  couldn't correct to lower values, which created the depression, for the dollar had an increased power..

[A18]

The stock market crash was caused by the holding companies, but the Depression was acused by a contracting money supply.

Actually, monetary contraction is harmless if the market can have room to make the necesary adjustments.
But thanks to Hoover and FDR's 'stabilization' policies, the wages  couldn't correct to lower values, which created the depression, for the dollar had an increased power..

The deflation of debts bankrupted many people and businesses in the 19th century and at the beginning of the Great Depression.

[Max Power]

Slash taxes and tariffs, implement limited public-works projects, keep the money supply fairly loose, and make sure the federal budget runs a very slight deficit.  And hope for the best .

That is because all politicians of the 1920's and 130's belived that you keep employment and production up by having a high tariff (limiting foreign competition on American industry) and by creaing a balanced budget (even if raising taxes is needed).

Damn 130's politicians!!

That's pretty much right, I think. If they would have balanced the budget by cutting spending and keeping the tax status of the time, the depression would not have lasted as long as it did. Plus, the high tariffs were economic suicide.

[A18]

FDR bashed Hoover for raising taxes too much. Then he got in office, and immediately tried to raise taxes. Easily the biggest liar we ever had as president, as well as the worst president so far.