From [Marc Abrams (2006.06.24.0149)]
[JIM DUNDON 06.23.06 0100EDST]
FOR WHAT IT'S WORTH...
A number of very good points JIm, but as Bill has pointed out there were _many_ factors that contributed to to the Depression and its depth and width.
That's true, but an adequate money supply is needed to facilitate trade, and it wasnt there.
For instance, unemployement. Trade Unions made out like bandits while a great many people could not get jobs or find work.
Had there been more money in circulation this would have been less severe,
We got into a trade
war to "protect" our indistries and our exports dropped by 53% in one
year which also contributed to our unemployement woes, and the list goes on.
Exactly. We did to ourselves in peace time what we do to our enemies in wartime.
What it all points too is ill advised government interventions.
Also true
The
best solution would have been to do nothing at all and just weather the storm like we did in the past,
Doesn't sound like good control to me.
but political expediency took president
over common sense and we paid dearly for it.
There were a lot of misguided theories being tossed around and the fed was losing confidence of the nation. There wasn't enough money in circulation. How would waiting it out help? What was going to change? You are an economist and certainly good with math. Where was the money going to come from as we sat it out to employ new workers?
It would have been best to have had the money supply in the hands of the populace not private bankers. Money should be produced simultaneously with wealth as a record of work performed. Money is a tally of work performed and thereby represents a commitment or intent to consume. people don't work for things they don't intend to consume. That is all it embodies. That is all it can embody. It should not be borrowed from banks. Why should I have to borrow a record of my labor and then pay interest on it? Had the populace had access to money creation, jobs could have been created. The insufficient supply of money made it impossible for everone to work. how can you divide X number of dollars into more pockets without lowering all prices, all mortgage balances, all wages, etc.
What effect do you see if we had increased the money supply during the depression?
I am interested in hearing your definition of money and who you think should control the supply.
Best
Jim
···
Regards,
Marc
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