In a piece entitled “The Great Real Estate Bubble of the Roaring Twenties,” the Economist Polly Cleveland provides a keen comparison between economic woes of today with yesteryear. For other insightful comments into the modern American economy, see www.georgiststudies.org.
Economists conventionally attribute the Great Depression to blunders by the then-new Federal Reserve Bank. According to this story, promoted by Milton Friedman and the Chicago School, after the stock market crash of 1929, the Fed kept interest rates too high, strangling the economy. This story made most economists confident that it couldn’t happen again.
Continue reading “The Housing Bubble”