Beware of Obamanomics

From Thomas Woods on today’s LewRockwell.com:

In 1920–21, the United States faced a grave economic crisis, worse than the first year of the Great Depression. Double-digit unemployment and a 21 percent decline in production over the previous twelve months greeted the new president.

That president, the now-despised Warren G. Harding, told Americans that the bust following the artificial, credit-induced boom of the war years had to be faced up to, and that no government, however wise, could make it disappear…

Government actually cut its budget during the crisis. There was no fiscal “stimulus.” The Fed looked on passively. And by the summer, recovery had already begun. According to today’s textbooks, that wasn’t supposed to happen. But it did.

The Depression of 1920 is so unknown today that it lacks even a Wikipedia article. Google trends show, however, that interest in it is sharply on the rise; clearly, Woods is getting the word out. Hopefully he’ll address other, older economic crises — like the appropriately named “Panics” of 1837, 1873, or 1893 — next.

Read the rest here.

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