2022-09-18

Roaring 20s Meme

Remember the roaring 20s meme? That died rather quickly.

Roaring 1920s: USA had a non-inteventionist government spending about 3 percent of GDP. It let the post-war, post-pandemic economy "crash" with no intervention. The "Forgotten Depression." It had neither stock market nor housing bubbles. A policy of easy money and credit expansion followed, along with a natural economic boom. The credit bubble started bursting later in the decade, eventually taking down the whole economy.

Other countries' experiences varied in the 1920s, including those of Weimar Germany and Soviet Russia. Here in 2022, which does the USA resemeble more? Not so much Weimar Germany except for some social/cultural similarities such as transgenderism that at least speak to a similar social mood. Then there's the total lockdown of society and centrally-planned green regulations. Is that closer to the laissez faire USA of 1920 or the growing Soviet Russia in 1920? Perhaps if the shackles of green central planning are thrown off, the USA would enjoy a boom as in the 1920s. For now, one is closer to the mark by betting on some type of disaster unfolding.

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