4 ms·
The argument isn't that if only the government keeps out there will be no pears, but that if the government keeps out the following recoveries will be faster an
by mseebach 15y ago
The argument isn't that if only the government keeps out there will be no pears, but that if the government keeps out the following recoveries will be faster and those responsible for the crash will take a hit financially, so hopefully someone learns a lesson or two.
- sethg 15y agoBut this did not happen. http://en.wikipedia.org/wiki/File:US-GNP-per-capita-1869-1918.png http://en.wikipedia.org/wiki/File:US-GNP-per-capita-1869-191...
- scythe 15y agoFrom 1869 to 1918, the per-capita GDP increases from $4600 to $12000 -- a time constant of 1.95% per year. From 1918 to 2011, the per-capita GDP increases from $12000 to $47300 -- a time constant of 1.47% per year. That is, the pre-Fed period experienced 32% faster growth over-all, or at least that's what it looks like, to me. Feel free to contest my analysis. http://www.wolframalpha.com/input/?i=log%2812000+%2F+4600%29+%2F+49 http://www.wolframalpha.com/input/?i=log%2812000+%2F+4600%29... -- first time period. Per-capita GDP starts at $4600 and ends at $12000 over 49 years. http://www.wolframalpha.com/input/?i=log%2847300+%2F+12000%29+%2F+93 http://www.wolframalpha.com/input/?i=log%2847300+%2F+12000%2... -- second time period. Per-capita GDP starts at $12000 and end at $47300 over 93 years.