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The Great Depression

MARCH 01, 2013

The Great Depression was a global economic downturn that endured from 1929 to 1941. The initial downturn began soon after central banks tightened the money supply in 1928. As national governments increased their central banks’ gold stock, an international gold deflation depressed prices and increased economic volatility. After the initial dip, the economy remained sluggish as central banks continued to enact inflationary monetary policy and governments expanded expenditures and regulations. The unpredictability of these policies discouraged entrepreneurial activity and prolonged the Great Depression.

 

Cato Institute: Amity Shlaes - A New History of the Great Depression

 

Future of Freedom Foundation: Lawrence Reed - Lessons from the Great Depression

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December 2014

Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
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