tag:blogger.com,1999:blog-31886581.post9025512400450843693..comments2024-02-11T13:28:46.262+00:00Comments on In Place of Fear: calgacushttp://www.blogger.com/profile/18253675072578015749noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-31886581.post-35351655332126536072008-10-01T01:29:00.000+01:002008-10-01T01:29:00.000+01:00You might well be right there Nemov. Galbraith men...You might well be right there Nemov. Galbraith mentions the gold standard and other government restrictions of the money supply (done on the advice of economists) as causes of the depression. <BR/><BR/>However the crisis has led to no-one being willing to provide credit or loans, which is very bad for the economy and for any businesses which would be viable in the long term but need a short term loan to get them through a tough period. That's got to have a similar effect to restricting the money supply surely?<BR/><BR/>If the bail-out went ahead the government in the US would become a lender and to make all the rest less afraid to start lending money to one another again.<BR/><BR/>The policies of FDR you mention certainly sound harmful but other policies in the New Deal - e.g government works programmes - weren't.calgacushttps://www.blogger.com/profile/18253675072578015749noreply@blogger.comtag:blogger.com,1999:blog-31886581.post-74227151055602716102008-10-01T01:05:00.000+01:002008-10-01T01:05:00.000+01:00I'll have to disagree with your assessment on the ...I'll have to disagree with your assessment on the Great Depression. Most people didn't have money invested in Wall Street so the crash didn't effect most Americans. However when Hoover raised taxes to print money (gold standard), raised tariffs, and raised interest rates it turned a recession into a depression.<BR/><BR/>FDR didn't really change the policies. The tariffs gradually went down but FDR intimidated Wall Street in an investment freeze that lasted until World War 2. If you look at the economy during the 30s FDR's policies didn't help do anything except prolong the depression.<BR/><BR/>FDR's leadership though helped the country from falling apart.Anonymousnoreply@blogger.com