The Depression That Never Happened

Immediately following World War I, in 1920, there was an economic collapse that makes 1929 (or 2007) look like a stroll in the park. It’s hardly remembered today. This article details the collapse and how the policies of Warren G. Harding nipped it in the bud. It’s notable that no president since Harding has followed similar policies – in fact, they’ve pretty much done the opposite. Where Harding succeeded, they failed. I imagine that Harding’s policies would have made re-election difficult, but we’ll never know because he died in office.

The article explains the underlying economics in a reader-friendly way. In fact, it’s explanation of how interest rates balance the investment choices targeting current or future consumption is outstanding. Thomas E. Woods should be congratulated.

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