Thursday, May 3, 2012

Bob Murphys has a new theory on the 1920-1921 depression

Now he writes:

"It [the recession] was awesome. Warren G. Harding literally put GNP (that’s what presidents cared about, back then, not GDP) on his back, and then walked up the stairs inside the Statue of Liberty. Then Hoover shot him, threw GNP out the window, and peed on it as it fell."


Context may or may not matter on this. I'm going to go with "doesn't matter", just for the hell of it. This is actually what the Austrian school has come too.


  1. so I followed this link where I found this really really revealing comment by Daniel Kuehn:

    I’d love to see the federal government get smaller.

    Exactly what part of the federal government do you want to disappear?

  2. This isn't a new theory, unless you're only reading the official version of history approved by the Trilateral Commission.

  3. This is actually what the Austrian school has come too.

    What, irrelevance?

  4. True story. I don't see any problems here, do you?

  5. What's funny Daniel is that (through no intention on your part) I am quite sure there are many Keynesians who will read this post, not bother clicking the link, and--albeit in a slightly puzzled way--think, "I knew that Murphy guy was nuts."

    1. At the same time, Bob, I don't want my goals here to be misrepresented by those who do click through the link. While I am just sharing something I found funny (and not evidence that you are nuts), I don't want people to think that I've presented conclusive evidence against the theory that you're nuts. The jury is still out on that one.


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