The correct medicine

It is simple…It is obvious…But of course certain vested interests do not want it.

" The connection between this version of history and the events of today is obvious enough: once again, it is claimed, wildcat capitalism has created a terrific mess, and once again, only a combination of fiscal and monetary stimulus can save us.

In order to make sure that this version of events sticks, little, if any, public mention is ever made of the depression of 1920–1921. And no wonder — that historical experience deflates the ambitions of those who promise us political solutions to the real imbalances at the heart of economic busts.

The conventional wisdom holds that in the absence of government countercyclical policy, whether fiscal or monetary (or both), we cannot expect economic recovery — at least, not without an intolerably long delay. Yet the very opposite policies were followed during the depression of 1920–1921, and recovery was in fact not long in coming.

The economic situation in 1920 was grim. By that year unemployment had jumped from 4 percent to nearly 12 percent, and GNP declined 17 percent. No wonder, then, that Secretary of Commerce Herbert Hoover — falsely characterized as a supporter of laissez-faire economics — urged President Harding to consider an array of interventions to turn the economy around. Hoover was ignored.

Instead of “fiscal stimulus,” Harding cut the government’s budget nearly in half between 1920 and 1922. The rest of Harding’s approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third.

The Federal Reserve’s activity, moreover, was hardly noticeable. As one economic historian puts it, “Despite the severity of the contraction, the Fed did not move to use its powers to turn the money supply around and fight the contraction.”[2] By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and it was only 2.4 percent by 1923.

Is that your own writting or do you have a link?

Its from the The Forgotten Depression of 1920 ->

I see. Its a bit like our Famine we had two but generally only refer to the later one as it was the Great Famine a la the Great Depression. Its easy to forget the good times :angry:

Actually there were several mini famines in the run up to the 1840s, there was also “the night of the big wind” in 1839 which caused massive damage.
But perhaps a view that you will never read in Irish history books, What Caused the Irish Potato Famine? ->

Oh Me All Mighty! The construction mahen existed before 2004 in Ireland…
““Competition for land resulted in high rents and smaller plots, thereby squeezing the Irish to subsistence and providing a large financial drain on the economy.””
From the link giving by boyracer.
This remind me of the shoe boxes that were sold for half a million, and some were in need of refurbishment as well… Then the crash…
Humm, history does not repeat itself, it studder :mrgreen:

The pin is the home of the deflationista. Slash and burn.

Offer an alternative that has worked anywhere else in the past.

Remember we are:

  • in a currency union
  • import most of our goods
  • rely on a multi-national sector that likes being in the EU/euro
  • owe most of our public and private debt externally