Obsticles to Recovery: Marxism and Keynesianism

[hopi watcher]

No, the Federal Reserve engaged in an orgy of inflation. Between 1921 and 1929 the money supply grew by 66%. The main cause of this was the Fed's purchases of US Government Securities, Bills Bought and New Discounts.

The Fed's role was also to facilitate industrial policy:

“The primary purpose of the Federal Reserve Act was to alter and strengthen our banking system that the enlarged credit resources demanded by the needs of business and agricultural enterprises will come almost automatically into existence and at rates of interest low enough to stimulate, protect and prosper all kinds of legitimate business” [Rothbard quoting Treasury secretary McAdoo]

This expansion led to a boom, particularly in capital goods industries. This is shown by the massive stock bubble of the time and the huge increases in wages of the workers in these industries.
This expansion caused a misallocation of resources, and evetually the boom had to turn to bust when the inflation stopped coming. Classic Austrian boom and bust.

The main contributors to the crash was greed and small government. If you care to check youi will find that the vast majority of US citizens in work where on pay levels below $2000 pa.
The five headings given for the crash are as follows,
Agricultural Recession.
Boom and Bust.
Mismatch between production and consumption
Inequality of wealth distribution
Weaknesses in the Banking System

[Lao-Tse]

Reisman doesn't really explain what's wrong with Keynes and Marx, instead telling
folk to read his book.

Interesting political views that Herr Mises had.Always a consistent opponent of big government, was Mises:

“Here Mises had no hesitation. In the struggle against the labour movement, authoritarian rule might be required. Looking across the border, he could see
the virtues of Mussolini, the black-shirts had for the moment saved European civilization for the principle of private property-“the merit that fascism has won
will thereby live on eternally in history”.Advisor to Monsignor Seipel, the prelate who ran the country in the late twenties, Mises approved of Dollfuss’s crushing of Austrian labour in the ’30, blaming the repression of 1934 which installed his clerical dictatorship on the folly of the Social Democrats in contesting his alliance with Italy.”

Quoted in “Spectrum” (p. 13) by Perry Anderson by Verso, 2005.

So Mises was very selective in the "big governments" he
opposed.

[Dios]

Meh, this is getting pretty tiresome.

So, eh stop starting these pointless threads which usually degenerate into you or one of your alter egos saying, nuh-uh, I can't prove why its nuh-uh, but thats the Austrian way! It feels right in me waters so it must be right!

Give over. Are you even an Irish resident? Because you seem to be pushing a very American, very fringe economic system on us here with all the fervent belief of a zealot.

[CookieMonster]

Give over. Are you even an Irish resident? Because you seem to be pushing a very American, very fringe economic system on us here with all the fervent belief of a zealot.

Eah... WTF?

[Irish Liberty Forum]

So, eh stop starting these pointless threads which usually degenerate into you or one of your alter egos saying, nuh-uh, I can't prove why its nuh-uh, but thats the Austrian way! It feels right in me waters so it must be right!

Give over. Are you even an Irish resident? Because you seem to be pushing a very American, very fringe economic system on us here with all the fervent belief of a zealot.

Negative rep for this insulting, offensive, ridiculous ad hominem.

[142857]

So, eh stop starting these pointless threads which usually degenerate into you or one of your alter egos saying, nuh-uh, I can't prove why its nuh-uh, but thats the Austrian way! It feels right in me waters so it must be right!

Give over. Are you even an Irish resident? Because you seem to be pushing a very American, very fringe economic system on us here with all the fervent belief of a zealot.

Austrians are such dumb yanks.























































Wait wut?

Half of what I'm reading from page 1 - 4 is but bizarre ad hominems and vicious derisiveness, and in fairness to 2000, he's remained generally polite.

[20000miles]

So, eh stop starting these pointless threads which usually degenerate into you or one of your alter egos saying, nuh-uh, I can't prove why its nuh-uh, but thats the Austrian way! It feels right in me waters so it must be right!

Give over. Are you even an Irish resident? Because you seem to be pushing a very American, very fringe economic system on us here with all the fervent belief of a zealot.

Why bother engaging in argument when ad hominems will suffiice?

[20000miles]

The main contributors to the crash was greed and small government. If you care to check youi will find that the vast majority of US citizens in work where on pay levels below $2000 pa.
The five headings given for the crash are as follows,
Agricultural Recession.
Boom and Bust.
Mismatch between production and consumption
Inequality of wealth distribution
Weaknesses in the Banking System

The Crash is only a symptom of a much bigger problem. The stock market had already started to sag about 5% in early 1928, but the Fed delivered the killer inflationary blow - a $300million dollar purchase of acceptances. The money supply increased about $2billion and the stock market soared once more.

Even today, there is a great deal of ignorance of the monetary expansion when it comes to bull markets - notice how Zimbabwe had the best performing stock market in 2007!

Moreover this inflation did not enter the economy evenly, but rather capital goods industries. Pig iron workers' wages rose very extensively for instance.

I think you are engaging in circular reasoning when you blame "agricultural recession" and "boom and bust" as causes of the crisis.

[20000miles]

Bumpity bump...

seems to be a good companion to the wage stickiness thread.

[hopi watcher]

The Crash is only a symptom of a much bigger problem. The stock market had already started to sag about 5% in early 1928, but the Fed delivered the killer inflationary blow - a $300million dollar purchase of acceptances. The money supply increased about $2billion and the stock market soared once more.

Even today, there is a great deal of ignorance of the monetary expansion when it comes to bull markets - notice how Zimbabwe had the best performing stock market in 2007!

Moreover this inflation did not enter the economy evenly, but rather capital goods industries. Pig iron workers' wages rose very extensively for instance.

I think you are engaging in circular reasoning when you blame "agricultural recession" and "boom and bust" as causes of the crisis.

This is the problem when engaging with your comments, you are right and everyone else is struggling to undersatnd. The headings that I give are taken directly from the cirriculum in the UK on the subject. Regarding the 'Pig Iron' workers, the fact remains that the vast majority of US workers were on less than $2000 pa. The fact remains that greed coupled with weak govenrment caused the problem and that is prescisly what occured again on this occasion.