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GM declares bankruptcy (pg. 27)
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| DOOMBOT |
| quote: | Originally posted by Krypton
No it didn't. Apparently, you missed the graph showing GDP rising from 1933 on. |
Lots and lots of spending happened from 1933 on, which prolonged The Depression.
| quote: | | I have no idea what you'r talking about. |
Of course you don't. We've already established the fact that you can not read.
| quote: | | Of course it's good for you. But guess what happens when prices fall across the board. BUSINESSES DON'T MAKE MONEY. The economy stagnates. People stop spending money. They see prices falling, and studies show, that falling prices does not stimulate spending, because people are waiting for prices to fall further, and trust me, they do. This is HORRIBLE for the economy. People lose jobs. Companies fail. Only someone without an understanding of economics would see deflation as a good thing. |
No, people stop spending money when prices are too high. Your logic doesn't make any sense.
| quote: | | Stop twisting my words. I said the Fed wasn't the one putting billions into mortgage backed securities. It was PRIVATE INSTITUTIONAL INVESTORS. Where do banks get their money to lend? Where do you think? They get it from DEPOSITORS. They also borrow from other banks, called, inter-bank lending. |
The private institutions have to get the money somewhere and it is hardly from depositors. Haven't you ever heard of fractional reserve banking? It is how our entire banking system works! Look it up! Fractional Reserving Banking! Holy Hell you are ignorant.
| quote: | | At least I'm saying deflation is good...idiot...:rolleyes: |
We agree!!!!!!!!!!!!! |
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| pkcRAISTLIN |
| quote: | Originally posted by DOOMBOT
Lots and lots of spending happened from 1933 on, which prolonged The Depression.
Of course you don't. We've already established the fact that you can not read.
No, people stop spending money when prices are too high. Your logic doesn't make any sense.
The private institutions have to get the money somewhere and it is hardly from depositors. Haven't you ever heard of fractional reserve banking? It is how our entire banking system works! Look it up! Fractional Reserving Banking! Holy Hell you are ignorant.
We agree!!!!!!!!!!!!! |
jesus. enrol in an economics class ffs. |
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| DOOMBOT |
| quote: | Originally posted by pkcRAISTLIN
bernanke is the pre-eminent expert on the great depression. |
That's hilarious, since he will be the one remembered for helping to drive us right into another one.
| quote: | | what does this have to do with greenspan? and which particular example are you talking about greenspan being wrong? |
:o |
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| Lebezniatnikov |
| quote: | Originally posted by DOOMBOT
1933, when all of the government spending started.
Trivia question: Why did the Depression of 1920 take less amount of time to get out of then The Great Depression? |
This is a dumb argument. I've heard this one before - that the "Depression" of 1920 ended after only a year because the government didn't get involved. Which explains why between 1929 and 1933 (when the New Deal was enacted), the U.S. economy enjoyed such robust growth, right?
1920 wasn't bad because it was a one-time spike in the deflationary rate of consumer goods following the end of World War I. Only disciples of Lew Rockwell and Ron Paul misconstrue it for some anti-government tirade. Congratulations on exposing your political philosophy. |
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| DOOMBOT |
| quote: | Originally posted by pkcRAISTLIN
jesus. enrol in an economics class ffs. |
I refuse to believe in the Keynesian philosophy. It has already gotten us into enough trouble. |
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| pkcRAISTLIN |
| quote: | Originally posted by DOOMBOT
I refuse to believe in the Keynesian philosophy. It has already gotten us into enough trouble. |
bernanke, milton and friedman are monetarists, not keynesians. and their analysis of the GP differs greatly from your own. |
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| DOOMBOT |
| quote: | Originally posted by Lebezniatnikov
This is a dumb argument. I've heard this one before - that the "Depression" of 1920 ended after only a year because the government didn't get involved. Which explains why between 1929 and 1933 (when the New Deal was enacted), the U.S. economy enjoyed such robust growth, right? |
| quote: | Together, government and business actually spent more in the first half of 1930 than in the corresponding period of the previous year. But consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures by ten percent, and a severe drought ravaged the agricultural heartland of the USA beginning in the summer of 1930.
In early 1930, credit was ample and available at low rates, but people were reluctant to add new debt by borrowing. By May 1930, auto sales had declined to below the levels of 1928. Prices in general began to decline, but wages held steady in 1930, then began to drop in 1931. Conditions were worse in farming areas, where commodity prices plunged, and in mining and logging areas, where unemployment was high and there were few other jobs. The decline in the US economy was the factor that pulled down most other countries at first, then internal weaknesses or strengths in each country made conditions worse or better. Frantic attempts to shore up the economies of individual nations through protectionist policies, such as the 1930 U.S. Smoot-Hawley Tariff Act and retaliatory tariffs in other countries, exacerbated the collapse in global trade. By late in 1930, a steady decline set in which reached bottom by March 1933. |
So to say that Government did nothing is completely false.
| quote: | | 1920 wasn't bad because it was a one-time spike in the deflationary rate of consumer goods following the end of World War I. Only disciples of Lew Rockwell and Ron Paul misconstrue it for some anti-government tirade. Congratulations on exposing your political philosophy. |
I've never tried to hide my economic philosophy. I've been spelling out since my first post in this thread. Congratulations for finally figuring it out after 1000 pages. |
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| pkcRAISTLIN |
| quote: | Originally posted by DOOMBOT
I've never tried to hide my economic philosophy. |
its normally a good idea to get a basic grasp of economics before one develops a philosophy though. you havent even come close. |
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| DOOMBOT |
| quote: | Originally posted by pkcRAISTLIN
bernanke, milton and friedman are monetarists, not keynesians. and their analysis of the GP differs greatly from your own. |
It is commonly known that since The Great Depression, the United States has followed Keynesian economic philosophy. |
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| EddieZilker |
| quote: | Originally posted by DOOMBOT
So to say that Government did nothing is completely false.
I've never tried to hide my economic philosophy. I've been spelling out since my first post in this thread. Congratulations for finally figuring it out after 1000 pages. |
I thought I'd proved that you didn't know what you were talking about, last night. Unfortunately, you decided to prove that you didn't know what you were talking about better than I ever could have.
Why must you defeat me, even if it means you're far better at defeating yourself than I ever could be? |
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| DOOMBOT |
| quote: | Originally posted by pkcRAISTLIN
its normally a good idea to get a basic grasp of economics before one develops a philosophy though. you havent even come close. |
Says the person who supports a philosophy which got us into a Great Depression, a Dot Com Boom, a Housing Crisis and who the hell knows what next... a dollar crisis?
Unreal... |
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| Lebezniatnikov |
| quote: | Originally posted by DOOMBOT
So to say that Government did nothing is completely false. |
Erm, congratulations, you found a quote that says public + private expenditures were higher in 1930 than in 1929... that doesn't even come close to giving you the conclusion you're proffering. Especially since it's well documented that the same was true between 1921 and 1920.
Look, the 1920 "Depression" wasn't really a Depression because it was a blip in the radar - in large part because prices dropped irrespective of aggregate consumer demand, which actually increased. Demand bottomed out in the first year of the Great Depression - this created the structural damage that made it an endemic depression rather than a mere period of instability.
This is why our current situation is so precarious - consumer demand is dangerously low.
| quote: | | I've never tried to hide my economic philosophy. I've been spelling out since my first post in this thread. Congratulations for finally figuring it out after 1000 pages. |
You don't have an economic philosophy if you don't know anything about classical economics. |
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