Both the existence of these parallels and their tragic nature would not have escaped Charles Kindleberger, whose World in Depression, 1929-1939 was published exactly 40 years ago, in 1973. Where Kindleberger's canvas was the world, his focus was Europe. While much of the earlier literature, often authored by Americans, focused on the Great Depression in the US, Kindleberger emphasised that the Depression had a prominent international and, in particular, European dimension. It was in Europe where many of the Depression's worst effects, political as well as economic, played out. And it was in Europe where the absence of a public policy authority at the level of the continent and the inability of any individual national government or central bank to exercise adequate leadership had the most calamitous economic and financial effects.
Barry EichengreenRelated topics
absence authority bank central continent depression dimension early government great inability international national nature public well while worst yearsRelated quotes
When we ask ourselves by what means a certain moral level can be maintained in a human or animal society, we find only three such means: the repression of anti-social acts; moral teaching; and the practice of mutual help itself. And as all three have already been put to the test of practice, we can judge them by their effects.
As to the impotence of repression - it is sufficiently demonstrated by the disorder of present society and by the necessity of a revolution that we all desire or feel inevitable. In the domain of economy, coercion has led us to industrial servitude; in the domain of politics - to the State, that is to say, to the destruction of all ties that formerly existed among citizens, and to the nation becoming nothing but an incoherent mass of obedient subjects of a central authority.
Peter Kropotkin
The unremitting division of labour resulted in admirable levels of productivity. The company's success appeared to bear out the principles of efficiency laid down at the turn of the twentieth century by the Italian economist Vilfredo Pareto, who theorized that a society would grow wealthy to the extent that its members forfeited general knowledge in favour of fostering individual ability in narrowly constricted fields. In an ideal Paretan economy, jobs would be ever more finely subdivided to allow for the accumulation of complex skills, which would then be traded among workers. ... But however great the economic advantages of segmenting the elements of an afternoon's work into a range of forty-year-long careers, there was reason to wonder about the unintended side effects of doing so. In particular, one felt tempted to ask ... how meaningful the lives might feel as a result.
Alain de Botton
Capitalism should not be condemned, since we haven't had capitalism. A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank. It's not capitalism when the system is plagued with incomprehensible rules regarding mergers, acquisitions, and stock sales, along with wage controls, price controls, protectionism, corporate subsidies, international management of trade, complex and punishing corporate taxes, privileged government contracts to the military-industrial complex, and a foreign policy controlled by corporate interests and overseas investments. Add to this centralized federal mismanagement of farming, education, medicine, insurance, banking and welfare. This is not capitalism!
Ron Paul
In our opinion, certain changes must be made in the conduct of international affairs, systematically subordinating all concrete aims and local tasks to the basic task of actively preventing an aggravation of the international situation, of actively pursuing and expanding peaceful coexistence to the level of cooperation, of making policy in such a way that its immediate and long-range effects will in no way sharpen international tensions and will not create difficulties for either side that would strengthen the forces of reaction, militarism, nationalism, fascism, and revanchlsm.
International affairs must be completely permeated with scientific methodology and a democratic spirit, with a fearless weighing of all facts, views, and theories, with maximum publicity of ultimate and intermediate goals, and with a consistency of principles.
Andrei Sakharov
In fact, the only person to rival Friedman for policy influence in the twentieth century is John Maynard Keynes, who had a strikingly different view of the role of government. Keynes was influential because he advocated more government intervention into what he perceived as poorly functioning private economies caught up in the Great Depression. In contrast to Keynes, Friedman put the main blame for the Depression on government failures, especially of monetary policy. Hence, the Depression did not make Friedman a fan of big government. He also found in the Federal Reserve's failure to prevent deflation an argument in favor of monetary rules. As the world evolved- with low inflation becoming the major mission of central banks and free markets and secure property rights becoming the main policies to promote economic growth-Friedman surely won the intellectual battle.
Robert Barro