Boom Bust Season 2 Episode 75 Jim Grant On the Forgotten Depression of 1921: the Crash That Cured Itself

Boom Bust season 2 episode 75 is titled "Jim Grant On the Forgotten Depression of 1921: the Crash That Cured Itself." In this episode, host Brent Jabbour interviews author and financial journalist Jim Grant about his latest book, "The Forgotten Depression: 1921: The Crash That Cured Itself."

Grant discusses the economic climate of the time and how the Harding administration responded to the depression by implementing policies that were considered unconventional at the time. These policies included reducing federal spending and taxes rather than increasing them, and allowing bankruptcies to occur unlike the government interventions that have become standard in recent times. Grant argues that the depression of 1921 was one of the most severe economic downturns in history but it was also one of the shortest.

Grant's book covers topics such as unemployment, production, and monetary policy in the years leading up to the Great Depression. He explains how the economic crisis was largely caused by the aftermath of World War I and the policy decisions of the Federal Reserve. Grant emphasizes that the government's response to the depression of 1921 was critical to its short duration and recovery, and provides insights into how policymakers should handle future economic crises.

Throughout the episode, Grant explains the difference between the depression of 1921 and the Great Depression that followed a decade later. He argues that the government's intervention during the Great Depression only prolonged the economic downturn and that the US did not fully recover from that event until after World War II. According to Grant, the lessons from the depression of 1921 were ignored during the Great Depression, leading to more severe consequences for the US economy.

The episode also covers the current economic climate and how policymakers are responding to the COVID-19 pandemic. Grant provides his opinions on the government's response to the pandemic, including the massive stimulus measures taken to combat the economic fallout of the lockdowns. He expresses concern about the long-term consequences of these policies and how they may affect inflation and interest rates in the future.

Overall, "Jim Grant On the Forgotten Depression of 1921: the Crash That Cured Itself" offers a unique perspective on economic history and provides insights into how policymakers should handle future crises. The episode is informative and thought-provoking, making it a must-watch for anyone interested in economics and finance.