Both the Sane and Insane Way to get out of a Depression
Posted April 17, 2010on:
The difference between the Conservative depression and the Progressive depression. This is a lesson from the past our current administration is ignoring and it is destroying our nation. This is copied entirely from Cato Institute report. BB
Cutting Spending in a Recession
One of the topics Chris Edwards will be discussing with Glenn Beck this evening (5:00 EST, Fox) is the “Not-So-Great Depression” of 1920-21.
With Harding’s tax and spending cuts and relatively non-interventionist economic policy, GNP rebounded to $74.1 billion in 1922. The number of unemployed fell to 2.8 million— a reported 6.7 percent of the labor force— in 1922. So, just a year and a half after Harding became president, the Roaring Twenties were underway. The unemployment rate continued to decline, reaching an extraordinary low of 1.8 percent in 1926. Since then, the unemployment rate has been lower only once in wartime (1944), and never in peacetime.