Hey Austrians

Doesn't anyone ever consider it interesting that the great depression only happened after the federal reserve system was put into place? Surely we can't blame the free market. The market had been free, or even freer than the one in the 1920's all throughout the 1800's, and while the fairness to the workers might be questioned, NOTHING like the great depression happened.
 
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Watermark said:
Doesn't anyone ever consider it interesting that the great depression only happened after the federal reserve system was put into place? Surely we can't blame the free market. The market had been free, or even freer than the one in the 1920's all throughout the 1800's, and while the fairness to the workers might be questioned, NOTHING like the great depression happened.
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Granted, Jackson's war on the Bank caused the Panic of 1837.
 
Watermark said:
Doesn't anyone ever consider it interesting that the great depression only happened after the federal reserve system was put into place? Surely we can't blame the free market. The market had been free, or even freer than the one in the 1920's all throughout the 1800's, and while the fairness to the workers might be questioned, NOTHING like the great depression happened.
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There were many panics and depressions prior to the Feds creation.
 
But the first was not until 1837. Honestly, the only two major depressions (or "panics") in the 19th Century were that one and the one in 1894. Of course, the economy tended to run a roller coaster pattern after the Civil War. No, Jackson alone is to blame for 1837.
 
Threedee said:
But the first was not until 1837. Honestly, the only two major depressions (or "panics") in the 19th Century were that one and the one in 1894. Of course, the economy tended to run a roller coaster pattern after the Civil War. No, Jackson alone is to blame for 1837.
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As I recall the first series of financial crises in the U.S. occurred shortly after the ratification of the Constitution.
 
First, those existed all throughout the Confederation Govt., which never got around to addressing the debt (or much of anything besides Western land). Second, that doesn't count, as it was all a result of the cost of the Revolutionary War.

Hamilton went to work with his 1st & 2nd Reports on Public Credit and his Report on Manufacturing (those moronic Jeffersonians rejected most, if not all, of the last one) and by the end of the Washington Admin. the economy had been completely turned around.

As a result of the complications of the election of 1800, Jefferson agreed not to roll back the clock on Hamilton's key reforms, so backwards Jeffersonian economic beliefs didn't really take force until the coming of Jackson 28 years later...
 
I don't agree with a completely free banking system. That's just too complicated. Banks should be free to make their own currency, but the federal government should also issue a currency backed by gold. This will probably become the by far predominant currency. In effect, I want a system structured much like Hamilton wanted it.
 
I agree. This country got SO screwed up after the Jeffersonians, and then Jacksonians took over. Hamilton, Adams and the Federalists really have been vindicated by history, though that does us a lot of good nowadays...
 
Threedee said:
I agree. This country got SO screwed up after the Jeffersonians, and then Jacksonians took over. Hamilton, Adams and the Federalists really have been vindicated by history, though that does us a lot of good nowadays...
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The Federalists were killed off by the Hartford convention. They apparently hadn't heard the war was over, and they came to Washington with a bunch of ammendments to the constitution limiting war power. So, the Democrats said "Ha! Told you so!" and the Federalists died out over the next 4 years, since they were now traitors.
 
That was 1815. The Party was basically dead after 1804. And yes, there were many nuts within the Federalist Party living in New England. The DRs were nuttier by far, though, and the Virginia militia was prepared to march on WaDC in 1801 if Adams and the Federalists remained in power.
 
Threedee said:
That was 1815. The Party was basically dead after 1804. And yes, there were many nuts within the Federalist Party living in New England. The DRs were nuttier by far, though, and the Virginia militia was prepared to march on WaDC in 1801 if Adams and the Federalists remained in power.
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The party was dead in the presidency, but it was still a major force until the Hartford convention.
 
Watermark said:
Were any as bad as the great depression?
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I don't think you can blame the fed for that, entirely. FDR and his NRA are mostly to blame for the severity and the length. He created widespread uncertainty and instability threatening the foundation of property rights needed for a healthy economy.
 
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