Order similar paper The Great Depression background The great depression is an immense tragedy that took millions of people in the United States from work. After almost a decade of prosperity and optimism, the US was now exposed to a period of despair.
I should state out front that I do not believe that complex systems subject to stochastic shocks can be modeled. Each essay is an attempt to slice out an organ of economic activity and conduct a pathological examination of it. Some essays are more persuasive than others.
Eichengreen proposed that the deflation was made infectious across borders by the gold standard. Bernanke shows that leaving the gold standard allowed guiders of monetary policy to inflate currency, which, in turn, helped debtors to get back on their feet, put themselves back to work and hire others.
But it was, obviously, far from a complete solution to the problem of persistent falling output. At the time, Bernanke says, going off gold was criticized as a "beggar-thy-neighbor" policy, but we now see that inflation was a good thing.
There is nothing new to the idea. Bernanke does not mention them. The quantification is only moderately impressive. I studied economics through economic history, and when you read those papers you get a lively sense of how inadequate economic data are. Furthermore, as many footnotes reveal, leaving out a parameter often has no "substantial" effect on the results.
This is a frequent feature of climate modeling, too. It is often used to suggest that the results are "robust" to the parameters that do affect results, but it probably is more generally to be interpreted as a strong signal that the theory has substantial defects. When you get the same outputs no matter what the inputs are, time to rethink the theory.
To their credit, Bernanke and his students do rethink the theory. When it comes to labor, though, not enough. While the view that gold is bad for trade seems solidly established, Bernanke has it acting almost in a vacuum. The second set of essays is much less impressive, in which Bernanke attempts to learn why wages were "sticky," that is, why real wages went up for those who had any income at all.
In theory, wages should have gone down until workers got so little that they would be worth hiring again. Bernanke shows, persuasively, that real wages did stay high during the Depression, even setting aside the fact that money bought more as currency deflated.
He spends much more time on the supply side: As Bernanke notes, large corporations entered the Depression with enough liquid assets that they were not directly affected by banking crises. High taxes, contrary to what Tea Partiers, Republicans and other economic illiterates will tell you, have nothing to do with it.
Here is where Bernanke goes off the rails. The consuming class had been wiped out. For American farmers -- who along with those closely connected to them in a business sense made up about two-fifths of the population -- the Great Depression began in and lasted until Tens of millions of them simply dropped out of the money economy.
An excellent description of how a large family, with substantial assets over a thousand acres of debt-free fat farmland in eastern Iowalived for two decades without spending money is available in "Little Heathens" by Mildred Kalish.
It was published in the essays were first published as early as and is used as a textbook in many colleges. My copy is a ninth printing.
I assume, from the uncorrected typos, that I am one of the few people to have actually read it.“The Great Depression” The Great Depression may be known to the world as the toughest economic period of the industrialized world that brought severe consequences to a .
Great depression means people live on the street, peoples out of work, getting fire, and many peoples have nothing to eat. During the great depression many peoples out of work all over unite start, many unemployed peoples get on the road, travel from town to town, city to city, state to state Reviews: 9.
The essay topics in this lesson offer different windows for your students to think deeply about the Great Depression.
Essay Topics about the Great Depression Itself to the Great Depression. The Great Depression of the s in Canada The Great Depression of the 's is a benchmark for all depressions and recessions in the past and in the future.
In the booklet "The Great Depression of the s in Canada", Michiel Horn gives an intellectual dissection of the events that occurred during the Great Depression.
The stock market crash of was one of the ingredients of the Great Depression. America was faced with hardships on a scale that it had never seen before.
The Great Depression was a time of economic turmoil, tough political decisions, scarce job opportunities, and as a .
Great&Depression&&New&Deal&Essay&Questions& CHOOSE&ONE&andcomplete&athorough&response&to&the&question.& 1. Describehow&theGreat&Depression.