***The Depression No One Knows*** 3/15/12

Dr. Daniel D’Amico, a professor of Economics at Loyola of New Orleans will be on the show to discuss arguably the greatest secret of American economic history- the Great Depression of 1920.

The Great Depression of 1920-what?

The problem is most Americans do not even know that there was a Depression in 1920! Unemployment had soared to 12% and GNP had declined 17%.

So why haven’t I heard about it?

Maybe because it lasted less only 2 years- so short that nobody remembers it happened.

Who was president during the 1920-21 Depression- and what did he think should be done?

“we will attempt intelligent and courageous deflation, and strike at government borrowing which enlarges the evil, and we will attack high cost of government…There hasn’t been a recovery from the waste and abnormalities of war since the story of mankind was first written…” –Warren G. Harding, during the Republican Presidential Nomination

Since when have you heard a politician call for deflation!

What were some of Harding’s policies?

Taxes- Cut them, for all income groups.

Spending- Cut the federal budget by one half.

Debt- Reduce national debt by 1.3

The Depression of 1920-1921 was over by summer 1923!

Even after these measures, the economy turned around quickly. So much for the conventional wisdom that decreased government spending will cause the economy to lose steam.

This 2-hour interview will certainly be one of our best to date.

Play mp3 here  RFM_Daniel_D’Amico_Final_031512

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