We were discussing no such thing.

We were discussing how the Depression refuted your pet theory.

We were debating the excesses of capitalism, and how they lead to authoritarian governments.

Actually, you were far more specific, saying that they led to SOCIALIST governments. But excesses of any system will ultimately lead to some other system, so now that you’ve moved the goalposts, you’re trying to convince me that the grass is green.

OK, I’ll buy that. :-)

You brought up the stock assessment of 1929’s excess by Friedman et al. a point of view supported only by the Austrian School

This is false, of course, because Friedman did not espouse the Austrian School.

They blame it on the Fed as if it was the fist market meltdown ever. And the Fed is an ad hoc rationalization. So, I posed what about 1907, 1893, 1857, 1837, 1819?

Another error. You’re conflating the people who would like the Fed to go away completely and believe that nothing good comes from them (Ron Paul, et al) with those who believe central banks perform a valuable service (moi’, being one) but realize that they can fuck up from time to time.

The Fed error after the events of 1929 was to tighten monetary policy, rather than loosen. This is why Ben Bernanke loosened policy rather than tightened after the events of 2008, and why he told Milton Friedman, at Dr. Friedman’s final honorarium, “You were right. We did it.” Here’s a good reference to that from the Fed’s own website, along with a key passage.

By “did it,” Bernanke meant that the leaders of the Federal Reserve implemented policies that they thought were in the public interest. Unintentionally, some of their decisions hurt the economy. Other policies that would have helped were not adopted.

An example of the former is the Fed’s decision to raise interest rates in 1928 and 1929. The Fed did this in an attempt to limit speculation in securities markets. This action slowed economic activity in the United States. Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe. The Fed repeated this mistake when responding to the international financial crisis in the fall of 1931. This website explores these issues in greater depth in our entries on the stock market crash of 1929 and the financial crises of 1931 through 1933.

An example of the latter is the Fed’s failure to act as a lender of last resort during the banking panics that began in the fall of 1930 and ended with the banking holiday in the winter of 1933. This website explores this issue in essays on the banking panics of 1930 to 1931, the banking acts of 1932, and the banking holiday of 1933.

So, let’s sum things up a bit: Milton Friedman believes the Fed caused, in part, the Great Depression. Ben Bernanke, whose PhD work was done on the Great Depression, also believes that, such that he did the opposite when faced with similar choices the Fed governors face in the early 1930’s. The Fed themselves believes it.

Yet, somebody named “Clint Irwin” believes that’s a fringe view held only by libertarians and Austrians. :-)

Moving on now. :-)

Bautista didn’t pervert the capitalist process, he did exactly what capitalists are supposed to do: keep all the profits for himself. That is the object of what capitalists do, whether they are dictators or CEOs.

Nope. That may be the caricature of capitalism you’ve formed in your mind, but Bautista was the government, not a business. The government’s role in capitalism is to (a) provide adequate infrastructure (roads, ports, law enforcement, etc), (b) to insure a level playing field (regulation where needed), and (c ) to collect a reasonable amount of taxes to fund (a) and (b).

It’s never to skim money off the top for the profit of a dictator. At the very least, Bautista failed (c ), and pretty much failed (a) and (b) as well.

But, thanks. The moment that you claimed that Bautista was a regular, every day capitalist doing what capitalists do, all the other stuff you’ve been peddling all fell into place. You draw no distinction between the proper operation of capitalism and malformed implementations of it.

Written by

Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store