5.10.04

STILL WORK TO BE DONE. Tyler at Marginal Revolution:
"I still don't understand what caused the Great Depression. Why couldn't everyone just change all the prices? What is it you teach people anyway?"
Hmm, didn't the National Recovery Administration subscribe to the notion that falling prices led to falling wages led to falling purchases led to falling employment ... so if you could just stop the prices from falling, things would get no worse.

No comments: