The untold origins of the Roaring Twenties, the Crash, and the Great Depression


Download 0.6 Mb.
NameThe untold origins of the Roaring Twenties, the Crash, and the Great Depression
page1/17
A typeDocumentation
  1   2   3   4   5   6   7   8   9   ...   17


History Incognito:

The untold origins of the Roaring Twenties, the Crash, and the Great Depression

By Sean P. Breen

Monday, April 10, 2006

Submitted in Partial Fulfillment of the Requirements for the Degree of Bachelor of Arts in the Department of History, Middlebury College
History Incognito –

The untold origins of the Roaring Twenties, the Crash and the Great Depression
This paper offers an answer to three important unanswered questions regarding the economic history of the 1920’s boom, the Crash of 1929 and the subsequent Great Depression. This paper supports its answers by creating new historical databases and subjecting the historical data to rigorous modern statistical analysis.

The three questions are: what caused the boom of the 1920’s, what caused the Crash of 1929 and what caused the ensuing Great Depression of 1930’s? The answer, which is detailed in the following pages, is that the antecedent cause for all three questions was the transformation of the United States into the world’s creditor as a result of World War One. This War and the reversal of the Unite States from a debtor nation to become the world’s only remaining banker, created a fragile world economy that demanded continued U.S. lending to support a level of international commerce that could allow repayment of War debts. The Mellon Treasury was masterful in managing the economic dislocation of the War Years and returning the U.S. economy to growth through a progressive and scientific reform of the U.S. tax structure and U.S. debt markets. This was the ‘cause’ of the 1920’s boom. The restructuring of lower peacetime tax rates and the lowering of tariffs promoted expanding trade with Europe that was essential if the European nations were to recover from the War and perform on the War debts owed to the U.S. Enabled by the Mellon treasury, the U.S. loaned money to Europe to buy U.S. products so that they could earn enough from the commerce to continue to perform on War debt and reparations that were in turn owed to the U.S. These policies were successful until the late 1920’s when declining agricultural prices, driven down by technological productive innovation, raised political temperament for agricultural tariffs. The politics of the agricultural tariff movement blossomed into a general tariff movement as all sectors of the economy sought to share in the political largesse. Unfortunately, the resulting Smoot-Hawley tariff destroyed the precarious basis under which the fragile international financial structure functioned. This was the ‘cause’ that resulted in the Crash of 1929. As international tariffs reduced international commerce the international financial system collapsed and the U.S. stock marked crashed. In reaction to the economic collapse U.S. policy retreated from the paradigm of low taxes and open markets to high taxes and closed markets which prevented recovery and so, ‘caused’ the Great Depression.

Sean P. Breen is a B.A. candidate in History at Middlebury College, in Middlebury Vermont. He gratefully acknowledges assistance of the College Library, History and Economic Faculty, which provided advice as well as strict deadlines contributing to the completion of this paper in April, 2006. He would like to further extend a special thanks to his advisors Travis Jacobs and Robert Prasch as well as Ed Breen, his father, and other members of the thesis committee for their support and encouragement. Finally, Sean is grateful to the late Jude Wanniski who laid the seeds that grew into this paper. Previous contributions by Milton Friedman, Anna Schwartz, Barry Eichengreen, Irving Fisher, Alan Meltzer, Robert Archibald, David Feldman, Eugene White, Claudia Goldin, Michal Bordo, Kevin Carey, Irwin Douglas, John Kenneth Galbraith, David Kennedy, Charles Kindleberger, Murray Rothbard, Peter Temin, and Jude Wanniski among many others were invaluable in composing this paper.

Contents:

Introduction 1

Chapter One: 9

Tax Policy: World War One to 1929 9

Chapter Two: 28

Monetary Policy, World War One and Changes in the Price Level 28

Chapter 3: 53

International Finance – World War One and the International Debts in the 1920s 53

Chapter 4: 68

Federal Reserve Policy after 1921 and the Era of Price Stability 68

Chapter 5: 84

The Coolidge Bull Market 84

Conclusion 148

APPENDIX A: 152

APPENDIX B: 154

APPENDIX C: 160

APPENDIX D: 166

Bibliography 167

Data Sources: 167

Primary Sources (order of year published): 167

Secondary Sources (alphabetical order): 173



  1   2   3   4   5   6   7   8   9   ...   17

Share in:

Related:

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconA. 1 a personal Recollection on the Origins of the EvoGrid

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconChapter 1 The Origins of Faith-Healing

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconThroughout our history the emergency seems always to have found the...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconSnow Crash ( 3)

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconBuy your appliances and all flooring from Root River Appliances and...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconScripts/depression medications htm >Celexa

The untold origins of the Roaring Twenties, the Crash, and the Great Depression icon1 Crash Recovery / Network Warning

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconRobin Williams' death shows depression doesn't discriminate

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconPico criteria for the review of characteristics of psychological...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconReferences of 281 randomized trials of psychotherapy for adult depression...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconA 43-year-old man is receiving positive pressure ventilation on a...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconFirst is the great white shark. It’s about 16 to 20 ft. It weighs...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconUser/brodym/N574A%20Spring08/appendix/ Zung Self-Rating Depression Scale (Zung sds)

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconA 30-year-old was involved in a rapid deceleration motor vehicle...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconThe 2006 Hyundai Tucson received the U. S. National Highway Traffic...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconWhy should you bother making backups? Because computers fail: hard...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconAbstract Walking from origins to transit stops, transferring between...

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconGreat Fortunes, and How They Were Made

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconScaling Up " keeping you great"

The untold origins of the Roaring Twenties, the Crash, and the Great Depression iconRule of the Great Beings




manual


When copying material provide a link © 2017
contacts
manual-guide.com
search