Obsticles to Recovery: Marxism and Keynesianism

[20000miles]

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.

Sorry if it seemed confusing, but what I'm essentially trying to say is that expansionary monetary policy from the Fed led to bad inenvestments being made in the "real" economy. In other words, capital and labour were misallocated in the boom, which amounts to destruction of real wealth.

It is this expansion of money and credit that causes booms which inevitably require recessions to correct.

I think my statement about the steel-workers' salaries rising, and the stock market boom try to illustrate how the boom affected capital good industries.

[hopi watcher]

Sorry if it seemed confusing, but what I'm essentially trying to say is that expansionary monetary policy from the Fed led to bad inenvestments being made in the "real" economy. In other words, capital and labour were misallocated in the boom, which amounts to destruction of real wealth.

It is this expansion of money and credit that causes booms which inevitably require recessions to correct.

I think my statement about the steel-workers' salaries rising, and the stock market boom try to illustrate how the boom affected capital good industries.

In other words the crash was caused by greed and weak government.

[Akrasia]

There's a small piece up on mises.org, identifying the two major obsticles to recovery.

by recovery, do you mean sustainable recovery? or a return to the 'grow grow grow' kleptocracy fuelled by private greed?

[20000miles]

In other words the crash was caused by greed and weak government.

In other words the recession was caused by lax monetary policy by an entity of the Federal Government.

by recovery, do you mean sustainable recovery? or a return to the 'grow grow grow' kleptocracy fuelled by private greed?

I mean an economy based around production and savings, not paper money inflation.

[hopi watcher]

In other words the recession was caused by lax monetary policy by an entity of the Federal Government.

If greed was not allowed free rein, the crash would not have occurred.

[20000miles]

If there was no expansionary monetary policy there would have been no "greed"...not that I'm admitting the greed was what caused the crash.

Just like the inflation used to fund the war caused the post-WWI recession, the inflation of the 1920s was the cause of the 1929 recession.

[JollyRedGiant]

not that I'm admitting the greed was what caused the crash.

are you for real?

[20000miles]

Don't cherry pick my quotes.

I told you what I think caused the crash: inflationist policies of the Fedaral Reserve.

[JollyRedGiant]

Don't cherry pick my quotes.

As if you have never done it

I told you what I think caused the crash: inflationist policies of the Fedaral Reserve.

And why do you think this happened?

[20000miles]

Who knows. You'd have to go back to the rationales of central banking. In the 1920s they probably thought that is was vital for central banks to give industry and agriculture endless streams of credit in order to facilitate "growth". Little did they know that growth based on credit and not savings causes recessions.