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| the money supply dried up, that`s why corn went to 5¢, hogs 2¢ and you could hire a hobo to work for $1, there just wasn`t the money in circulation. money supply M2 dropped from $26,5 billion in 1929 (roaring 20`s) down to $19 billion in 1933, down 28%. can you imagine if today`s $21.5 TRILLION M2 dropped down to $17.6 Trillion??? it would be a depression, no doubt.
https://www.econlib.org/the-factors-in-the-drastic-money-supply-drop...
"mr roosevelt" credited with "savin` us all" took the money supply to $50 billion in 1940... give me $20 billion and i`ll show you a hell of a good time too. that`s why the smart oldtimers would say "ww2 was what got us out of the depression" .
In 1940, the money supply in the United States was significantly influenced by the onset of World War II, leading to a substantial increase in the monetary base and a doubling of the money supply by the end of the war.
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those saying "tariffs caused the great depression" or "exacerbated it" learned a false lesson that`s been going on 80 years now. | |
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real cause of the great depression
