What do you think?
Rate this book
Politically Incorrect Guides
The Politically Incorrect Guide to the Great Depression and the New Deal
In this timely new P.I. Guide, Murphy reveals the stark truth: free market failure didn't cause the Great Depression and the New Deal didn't cure it. Shattering myths and politically correct lies, he tells why World War II didn t help the economy or get us out of the Great Depression; why it took FDR to make the Depression Great; and why Herbert Hoover was more like Obama and less like Bush than the liberal media would have you believe. Free-market believers and capitalists everywhere should have this on their bookshelf and in their briefcases.
272 pages, Paperback
First published March 31, 2009
38 people are currently reading
926 people want to read
About the author
Robert P. Murphy
33 books195 followersRobert P. "Bob" Murphy is an Austrian School economist and anarcho-capitalist.
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 30 of 64 reviews
March 5, 2020
A book that makes economics and history interesting for everyone. Economist Robert Murphy makes the bold claim that Franklin Roosevelt’s New Deal policies not only did not stop the Great Depression but actually prolonged it. This book combines the findings of many historians and economists who have extensively studied the Great Depression into one entertaining book that is surely to change the minds of its readers regardless of their dispositions. I found myself surprised many times even though I’m a conservative.
March 11, 2013
This is a revisionist neo-conservative spin of the FDR's New Deal policies. There is very little history, politically incorrectly, or othervise. Imagine if Sports Illustrated wrote how 1930s football be be is coached by today's coaches. It would be meanlingless.
Same goes for this book. Putting a 21st century Bill O'Reilly spin on New Deal policies just makes for a strange book. History told by Sarah Pailin or Glenn Beck or their minions. This whole series of book is worthless as history. I would cringe at something like "The Polictically Incorrectly History of the Old West." Who know? Custer was just a misunderstood general.
One last point, spare me how Bill O'Reilly is a great history writer. His "Killing Lincoln" book was banned from the Ford Theater bookstore. Why? Gross inacuraticies.
Same goes for this book. Putting a 21st century Bill O'Reilly spin on New Deal policies just makes for a strange book. History told by Sarah Pailin or Glenn Beck or their minions. This whole series of book is worthless as history. I would cringe at something like "The Polictically Incorrectly History of the Old West." Who know? Custer was just a misunderstood general.
One last point, spare me how Bill O'Reilly is a great history writer. His "Killing Lincoln" book was banned from the Ford Theater bookstore. Why? Gross inacuraticies.
October 16, 2014
Serviceable summary of a conservative view of the great depression. I have read many of the source books the author cites. This might make a good introduction to readers who have only learned the generally accepted history of the depression with FDR as savior.
It did bother me that the author did not have an accurate understanding of FDIC. This insurance is not paid for by tax payers. It is paid for by fees collected from banks.
The book was written in 2009, but the author predicted that Obama would follow in the footsteps of Roosevelt and try to apply liberal economic policies to deal with the recession. He predicted that it would be a slow recovery and unfortunately he has been right.
It did bother me that the author did not have an accurate understanding of FDIC. This insurance is not paid for by tax payers. It is paid for by fees collected from banks.
The book was written in 2009, but the author predicted that Obama would follow in the footsteps of Roosevelt and try to apply liberal economic policies to deal with the recession. He predicted that it would be a slow recovery and unfortunately he has been right.
December 16, 2015
Most of us have been fed one narrative of the Great Depression: The market excesses of the roaring 20s caused the Great Depression, then upon winning the election FDR swooped in and declared a bank holiday, which essentially stabilized the markets. The New Deal was an essential stimulant in the road to recovery, and finally it was U.S entry into WW2 which created the type of production necessary to put us over the top and get us out of the Great Depression.
Robert Murphy challenges this narrative and analyzes in detail the role of the Federal Reserve in creating the initial environment which brought about the depression, and the the government policies of Hoover and Roosevelt which further exacerbated the situation. This is not an especially technical text, but Murphy does not shy away from using statistics and graphs where necessary to prove his points. And, because this is an introductory text to the problems with the prevailing analysis of the Great Depression, perhaps what the reader will especially appreciate is the recommendations for a plethora of books which can give the reader a more technical and in depth understanding of the issues mentioned in this book.
As a final point of appreciation in this short review:- what I really liked, and also what I think the reader will appreciate is the manner in which Murphy throws everything in context by relating it to the nature of the market now. He asks questions such as, was Bush really the free-market president as he's made out to be, and what the relationship is between his policies and those of Pres. Obama's with those of Hoover and Roosevelt. Anyone who understands the history of a time period as well as its economics, in my opinion will always have an upper hand over and a deeper perspective than the person who looks at only one or the other.
Ultimately whether one agrees with what has been taught to them, or if they have some inkling that they feel that something about the narrative doesn't jive, and especially if one considers themselves to be a free thinker... I would highly recommend this book.
Robert Murphy challenges this narrative and analyzes in detail the role of the Federal Reserve in creating the initial environment which brought about the depression, and the the government policies of Hoover and Roosevelt which further exacerbated the situation. This is not an especially technical text, but Murphy does not shy away from using statistics and graphs where necessary to prove his points. And, because this is an introductory text to the problems with the prevailing analysis of the Great Depression, perhaps what the reader will especially appreciate is the recommendations for a plethora of books which can give the reader a more technical and in depth understanding of the issues mentioned in this book.
As a final point of appreciation in this short review:- what I really liked, and also what I think the reader will appreciate is the manner in which Murphy throws everything in context by relating it to the nature of the market now. He asks questions such as, was Bush really the free-market president as he's made out to be, and what the relationship is between his policies and those of Pres. Obama's with those of Hoover and Roosevelt. Anyone who understands the history of a time period as well as its economics, in my opinion will always have an upper hand over and a deeper perspective than the person who looks at only one or the other.
Ultimately whether one agrees with what has been taught to them, or if they have some inkling that they feel that something about the narrative doesn't jive, and especially if one considers themselves to be a free thinker... I would highly recommend this book.
May 23, 2013
Pity they don't teach "real" history in schools anymore - just watered down politically correct propaganda. This is a must read for people who want to gain a real understanding of the Great Depression and late 20th century US economic/monetary policy.
December 26, 2009
The most surprising thing I learned was that the legal tender law against gold was removed in the 70's. But that's just a tiny factoid in a well-researched book. I knew of many of the other things in the book from reading the author's blog and listening to his lectures over the past year or so, which is why I didn't "learn" much from the book itself. But, someone who is not already a fan of the author - funny, really smart, level-headed, did I say smart? - will learn a lot from the book.
It is an easy-to-read summary of the economics and politics of the Great Depression and the New Deal. The PIG books are aimed at right-of-center types, so the author assumes his audience is pro-free market, anti-New Deal to some extent. He then presents the Austrian school of economics' theory of why the Great Depression was great, and what eventually allowed the country to turn around. It combines the scholarship of Murray Rothbard's "America's Great Depression" and Bob Higgs' analyses of Roosevelt's New Deal and WWII, among others' works, but in a much more accessible format.
The strength of the author is that he is well-versed in other schools of economic thought and is able to use their own arguments to point out fatal flaws in their conclusions. He is especially strong as an econometricist, although he eschews this as a valid way to study economics. He is also willing to give his intellectual opponents the benefit of the doubt, especially as it comes to motive, so he avoids the pitfalls of ad hominem attacks. His arguments are convincing and informative, and you'll come away wondering if politicians ever learn from past mistakes.
It is an easy-to-read summary of the economics and politics of the Great Depression and the New Deal. The PIG books are aimed at right-of-center types, so the author assumes his audience is pro-free market, anti-New Deal to some extent. He then presents the Austrian school of economics' theory of why the Great Depression was great, and what eventually allowed the country to turn around. It combines the scholarship of Murray Rothbard's "America's Great Depression" and Bob Higgs' analyses of Roosevelt's New Deal and WWII, among others' works, but in a much more accessible format.
The strength of the author is that he is well-versed in other schools of economic thought and is able to use their own arguments to point out fatal flaws in their conclusions. He is especially strong as an econometricist, although he eschews this as a valid way to study economics. He is also willing to give his intellectual opponents the benefit of the doubt, especially as it comes to motive, so he avoids the pitfalls of ad hominem attacks. His arguments are convincing and informative, and you'll come away wondering if politicians ever learn from past mistakes.
April 6, 2011
Not only was I happy to find a book which had views on saving & growth that I can respect but it also happens to be apparently more than interesting historical data, proving to be quite relevant to what has/is/will be happening in recent years in the US/worldwide, as if the book is right things are being mirrored almost 1 to 1 in the ways the government is intervening.
August 26, 2011
A must read, provides evidence that The New Deal didn't get us out of the Depression and neither did World War II. Not to mention that the statistics are rigged in these regards and he shows how certain purported data trends do not indicate economic recovery.
November 15, 2017
Gave me approximately 372 new reasons to hate FDR.
January 10, 2022
Bobby up there is a self-described "anarcho-capitalist," which should tell you all you need to know about the quality of this garbage.
October 7, 2020
A book that is beyond amazing on the idiocy of both intellectuals during the great depression era, and of the damage that Herbert Hoover and Frank Delano Roosevelt have done on the United States of America, making it often at times as fascist as Nazi Germany. I really loved this book because it shows one how misguided the public are regarding issues of history and economics, and it's very sad and futile to discuss these issues with the experts since their general uninformedness in economics leads to the many biases and fallacies regarding both historical investigation and treatment of causes and effects in the history of our region as well as elsewhere.
I personally needed this book for many reason, and it was very beneficial that I've discovered it at this time, since I found out about a twitter thread talking about how one ought to deal with economic depressions (and of course, through massive governmental intervention). In the end, I made friends with another economist who initially supported the claims of the person who wrote the thread but thought otherwise after our conversation. Thank you Dr. Murphy for this amazing book!
I personally needed this book for many reason, and it was very beneficial that I've discovered it at this time, since I found out about a twitter thread talking about how one ought to deal with economic depressions (and of course, through massive governmental intervention). In the end, I made friends with another economist who initially supported the claims of the person who wrote the thread but thought otherwise after our conversation. Thank you Dr. Murphy for this amazing book!
June 22, 2019
As it is with other books in the "Politically Incorrect Guide" series, The Politically Incorrect Guide to the Depression and the New Deal by Robert P. Murphy addresses the commonly accepted myths that the failure of the free market system caused the Great Depression and FDR's New Deal programs cured it. He takes a hard look at the facts and busts these myths including his explanation that WWII did not itself help stimulate the economy and why FDR's meddling in the economy with his New Deal programs are what made the Depression Great. This coincides with what I have read in the analysis done by authors of other books about that time period including "FDR Goes to War: How Expanded Executive Power, Spiraling National Debt, and Restricted Civil Liberties Shaped Wartime America" and "FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression." While conventional wisdom pushed repeatedly by many historians and even taught as factual in our school systems heralds FDR as the savior of our economy, even books that are supportive point out that his administration had no cohesive plan but relied more on a "try this and if that doesn't work, try that" strategy that extended the recovery period. Recommended for anyone looking for deeper understanding of contributing factors to the causes and recovery from the Great Depression.
November 22, 2009
I really enjoyed this book. There were sections where I wished for more detail, but the format of the series is to condense the material for the casual reader, so that was alright. This book presents good cases against many of the explanations for and solutions to the Great Depression, including Hoover being a do-nothing president, the New Deal getting us out, and WWII getting us out. The Austrian case is presented nicely, and authors such as Hayek, Mises, and Hazlitt are brought up.
The format of the book is a bit weird. The normal text flows page to page, but there are lengthy sections of text interspersed around the main body, so the reader constantly has to either skip over those sections or find a good stopping point in the main text so he/she can take in a box of related content.
I really liked the abundance of quotes from the era, many of which were humorous or very illustrative. I would recommend this book for anyone who wants a different side of the Great Depression than the mainstream.
The format of the book is a bit weird. The normal text flows page to page, but there are lengthy sections of text interspersed around the main body, so the reader constantly has to either skip over those sections or find a good stopping point in the main text so he/she can take in a box of related content.
I really liked the abundance of quotes from the era, many of which were humorous or very illustrative. I would recommend this book for anyone who wants a different side of the Great Depression than the mainstream.
May 11, 2009
This is a book about economics and history, two subjects which can be very boring, and as such, it is occasionally boring, but it makes its points:
1) Many of common "facts" about the early 20th century, the Great Depression, and economics, generally, are actually quite false.
2) Progressive policies and their implementation caused and exacerbated the Great Depression.
3) The Obama Administration is making the same mistakes today that were made at the time of the Great Depression, thereby making our economic situation, both now and in the future, much worse.
1) Many of common "facts" about the early 20th century, the Great Depression, and economics, generally, are actually quite false.
2) Progressive policies and their implementation caused and exacerbated the Great Depression.
3) The Obama Administration is making the same mistakes today that were made at the time of the Great Depression, thereby making our economic situation, both now and in the future, much worse.
July 7, 2013
An excellent overview of the Great Depression and the many ways it resembles the economic mess Americans find themselves in today (ie, George W. Bush is the new Herbert Hoover and Obama is the new FDR). The book challenges some commonly held assertions, such as the notion that Hoover did nothing to combat the economic downturn and that it was primarily the advent of World War II which finally put the brakes on the Depression for good.
March 27, 2014
High level, quick reading overview of the myths of the Great Depression and New Deal.
June 2, 2016
“The Politically Incorrect Guide to the Great Depression and the New Deal” by Robert Murphy is a very good introduction into the myths surrounding the Great Depression and the New Deal. Much of the economic ignorance spouted today is justified by parroting myths from the 1920’s and 1930’s, so it is important to dispel those myths if we wish to dispel the economic ignorance in vogue today. I have listened to Bob Murphy on the Contra Krugman podcast and in several of his talks at Mises Institute events, but this is the first book I have read by him. I believe that it fulfills its purpose perfectly; it destroys the most prevalent myths surrounding the Great Depression and New Deal without overwhelming the reader with too much information or too much detail.
Murphy attacks conventional wisdom about the Great Depression and New Deal by breaking up the myth into several parts. First, he discusses myths about Herbert Hoover sitting idly as the Great Depression ravaged Americans. Next, he discusses the monetarist view that the Fed did not pump enough money into the economy to fight the stock market crash of 1929. He then takes on the view that FDR and his New Deal got us out of the Great Depression. Next, he dispels the notion that World War II got us out of the Great Depression. He does a great job to destroy each and every one of these myths. The mini-depression of 1921 may be the smoking gun in this whole story; deflation hit much harder during that depression than it did during the beginning of the Great Depression and the government largely stood on the sidelines and let the economy fix itself. Within two years, the mini-depression was over and the Roaring ‘20s ensued. Murphy also points to Fed-induced inflation during the mid- to late-1920’s, leading to a speculative boom that needed to burst. Once that bubble burst, Hoover did anything but sit idly by. He attempted to prop up wages and initiated huge public works projects, unprecedented actions by the federal government and, more specifically, the executive branch of the federal government. When FDR reached office, he simply took Hoover’s policies to another level, spending at obscene levels in peacetime. The New Deal was simply an extension of Hoover’s policies, though Roosevelt compounded things by taking the U.S. off the gold standard and confiscating privately held gold in the U.S. These unprecedented actions coincided with the worst depression in American history to that point; the most plausible reason why the Great Depression was so gruesome for so long was because of those unprecedented interventions by government. No other explanation makes sense in light of all the facts.
“The Politically Incorrect Guide to the Great Depression and the New Deal” is a great introduction to the Austrian explanation of the Great Depression. Murphy is a talented economist and orator who is very good at getting information across to a lay audience. If you are Austrian-oriented and have not seriously broached the subject of the Great Depression, this book is right up your alley. If you want a quick read to give the Austrian viewpoint a chance, this would be the perfect place to start.
Murphy attacks conventional wisdom about the Great Depression and New Deal by breaking up the myth into several parts. First, he discusses myths about Herbert Hoover sitting idly as the Great Depression ravaged Americans. Next, he discusses the monetarist view that the Fed did not pump enough money into the economy to fight the stock market crash of 1929. He then takes on the view that FDR and his New Deal got us out of the Great Depression. Next, he dispels the notion that World War II got us out of the Great Depression. He does a great job to destroy each and every one of these myths. The mini-depression of 1921 may be the smoking gun in this whole story; deflation hit much harder during that depression than it did during the beginning of the Great Depression and the government largely stood on the sidelines and let the economy fix itself. Within two years, the mini-depression was over and the Roaring ‘20s ensued. Murphy also points to Fed-induced inflation during the mid- to late-1920’s, leading to a speculative boom that needed to burst. Once that bubble burst, Hoover did anything but sit idly by. He attempted to prop up wages and initiated huge public works projects, unprecedented actions by the federal government and, more specifically, the executive branch of the federal government. When FDR reached office, he simply took Hoover’s policies to another level, spending at obscene levels in peacetime. The New Deal was simply an extension of Hoover’s policies, though Roosevelt compounded things by taking the U.S. off the gold standard and confiscating privately held gold in the U.S. These unprecedented actions coincided with the worst depression in American history to that point; the most plausible reason why the Great Depression was so gruesome for so long was because of those unprecedented interventions by government. No other explanation makes sense in light of all the facts.
“The Politically Incorrect Guide to the Great Depression and the New Deal” is a great introduction to the Austrian explanation of the Great Depression. Murphy is a talented economist and orator who is very good at getting information across to a lay audience. If you are Austrian-oriented and have not seriously broached the subject of the Great Depression, this book is right up your alley. If you want a quick read to give the Austrian viewpoint a chance, this would be the perfect place to start.
June 12, 2013
Who Put the “Great” in the Great Depression?
A depression (recession, panic, or contraction, whatever name you want to call it) is a natural recurring feature of capitalism. If you don’t believe me, ask the Fed. They sold themselves to the American public as a way of smoothing over these cycles.
So what makes a normal depression into a Great one? It takes lobbying and it takes politics and it takes a lot of do-gooders and not so do-gooders in Washington trying to do the so-called pragmatic thing. This is how Hoover got it going and this is how Roosevelt kept it going long enough to get 4 terms out of it and still a great name in the history books.
This is also how Obama will keep it going. Bush, like Hoover, was there to get it started so we can blame it all on free markets but after that we have to have a Democrat to save us. They are the party of the little guy and all the disenfranchised. (Ha! Ha! Ha! All the way to the central bank)
Maybe the American people will figure it out this time. Pray for the Tea Party people – at least they are open. A “Bushism” is appropriate here; “Fool me once, shame on you; fool me twice and shame on me.” Shame on all of us!
For a good introductory, very readable history, I recommend The Politically Incorrect Guide to the Great Depression and the New Deal by Robert P. Murphy, Ph.D. Economics.
Oh, and all you Christians out there that think this is just a sign of the end-times; you need to really wake up! You’ve been fooled a bunch of times.
A depression (recession, panic, or contraction, whatever name you want to call it) is a natural recurring feature of capitalism. If you don’t believe me, ask the Fed. They sold themselves to the American public as a way of smoothing over these cycles.
So what makes a normal depression into a Great one? It takes lobbying and it takes politics and it takes a lot of do-gooders and not so do-gooders in Washington trying to do the so-called pragmatic thing. This is how Hoover got it going and this is how Roosevelt kept it going long enough to get 4 terms out of it and still a great name in the history books.
This is also how Obama will keep it going. Bush, like Hoover, was there to get it started so we can blame it all on free markets but after that we have to have a Democrat to save us. They are the party of the little guy and all the disenfranchised. (Ha! Ha! Ha! All the way to the central bank)
Maybe the American people will figure it out this time. Pray for the Tea Party people – at least they are open. A “Bushism” is appropriate here; “Fool me once, shame on you; fool me twice and shame on me.” Shame on all of us!
For a good introductory, very readable history, I recommend The Politically Incorrect Guide to the Great Depression and the New Deal by Robert P. Murphy, Ph.D. Economics.
Oh, and all you Christians out there that think this is just a sign of the end-times; you need to really wake up! You’ve been fooled a bunch of times.
February 6, 2012
The Politically Incorrect series provides a powerful revisionist account of past events. I use revisionist in a neutral sense. It can be used to confirm biases or to challenge the conventional wisdom. With respect to economic history, revisionism is important. The resources and data available to modern economists provides a unique perspective to the events. This combined with additional years to analyze the situation help sober the image.
In Robert Murphy's,, an explanation for the Great Depression is put forth that challenges what I was taught in school and makes a much more powerful case than the talking-points history of the left (capitalism failed, FDR saved us, the war ended the Great Depression). Extremely logically and well researched, this book shows how Hoover was just a FDR-lite and it was not the free market that caused the Great Depression. I can hear the gasps now from people on the left, but it's true. Focusing around Austrian business-cycle theory, Murphy explains why the expansion of money (an error of government) in 1920's led to the crash and poor decisions prolonged the Depression. Even conservatives, especially followers of Milton Friedman, have some tough questions posed about the causes of the Depression. Earlier recessions (specifically the early 1920's) are constantly contrasted to show the folly of liberal/Keynesian policy.
If you want to challenge what you've learn over the years (and everyone should), this book provides a great lesson in economics, history and politics.
In Robert Murphy's,, an explanation for the Great Depression is put forth that challenges what I was taught in school and makes a much more powerful case than the talking-points history of the left (capitalism failed, FDR saved us, the war ended the Great Depression). Extremely logically and well researched, this book shows how Hoover was just a FDR-lite and it was not the free market that caused the Great Depression. I can hear the gasps now from people on the left, but it's true. Focusing around Austrian business-cycle theory, Murphy explains why the expansion of money (an error of government) in 1920's led to the crash and poor decisions prolonged the Depression. Even conservatives, especially followers of Milton Friedman, have some tough questions posed about the causes of the Depression. Earlier recessions (specifically the early 1920's) are constantly contrasted to show the folly of liberal/Keynesian policy.
If you want to challenge what you've learn over the years (and everyone should), this book provides a great lesson in economics, history and politics.
September 7, 2009
I love this series of books, Robert Murphy is a clear writer, very smart and knows economics. This book is centered on the New Deal policies and how they adversely affected our country. He traces the steps of FDR and the FED, he covers the happenings in the country when things were good and what the government was doing and then conversely traces the steps when we were in a Depression and what the Fed and government was doing to enhance the downturn. The subjects he touches on are numerous, they are not in depth but satisfactory, seeing as there is no end to books of depth on this subject. I distrust the government anyway so this was of little surprise to me, but I learned many things and will look to extend my knowledge by reading many of the books Mr. Murphy recommends. There is no doubt that this book challenges the staus quo, if you think FDR was a saint the question will be whether you can stand the scorn he shows the President. By the way Hoover and Bush get a pounding as well. Murphy is a libertarian and of the Mises school of Austrian Economics.
November 15, 2009
Although I'm a slow reader I ripped through this book in just a couple of days. Murphy does a great job of presenting the anti-FDR/New Deal case, which I'm very familiar with, without preachiness or boring repetition. The P.I.G. book format did not seem as annoying as it has in the past.
One excellent point made that I hadn't heard before was the explanation for why the US did not sink into socialism during and after WW2, as Britain did, even though that seemed to be our destiny throughout the New Deal years. Murphy, citing the ground-breaking work by Robert Higgs in this area, explains that FDR was wise enough to discard his New Deal central planners for capitalists who really knew how to produce, and were so vital to the war effort. I never knew that all the New Dealers except Roosevelt himself were gone by 1943. No wonder the country emerged from the Depression so rapidly after the war ended.
One excellent point made that I hadn't heard before was the explanation for why the US did not sink into socialism during and after WW2, as Britain did, even though that seemed to be our destiny throughout the New Deal years. Murphy, citing the ground-breaking work by Robert Higgs in this area, explains that FDR was wise enough to discard his New Deal central planners for capitalists who really knew how to produce, and were so vital to the war effort. I never knew that all the New Dealers except Roosevelt himself were gone by 1943. No wonder the country emerged from the Depression so rapidly after the war ended.
April 12, 2012
My mistake was that I read this book. I should have come into it expecting to have to study the book. I do not have an "economics" mind and so at times had to stop and go back over parts in an effort to better grasp different points. I felt the author made very valid points and based on my limited understanding, the Austrian school of economics makes more sense to me. The book seemed to have a well-researched feel to it and the bits of humor sprinkled throughout helped lighten a very dense topic (at least for me). This book helped me feel like there is potential for me to better understand economics and any book that can do that deserves a four star rating on that alone! I anticipate re-reading this at some point when I have a better grasp of economics. I am sure I'll get more out of it then.
October 3, 2009
Does an excellent job of bringing many sources together and makes a compelling cases for his thesis that Hoover and George W. Bush, and FDR and Obama are parallels in the current economic crisis. Like Hoover, Bush was seen as laissez-faire, when he spent billions in propping up market failures; like FDR, Obama wants to "spread the wealth around" and his failed stimulus packages build on Bush's in the same way that FDR's New Deal built on Hoover's massive big government spending programs. If Obama is the new FDR, and these United States can't return to the Constitution and free market principles, expect a new Great Depression. Force, fraud, and theft is no way to run a country.
November 14, 2013
The reality is that there is more background noise to the great depression than what you'll ever find in a traditional high school American history book. The government's role in the initiation of the depression and throughout its unnecessarily long recovery is striking when an objective investigation of this matter is undergone. Economically, FDR is completely illiterate along with his predecessor Hoover. Definitely worthy of a good historical and economic read. Well done.
January 15, 2011
I have read a lot about the Great Depression during my life and was interested in what this book might have to add. It was strictly a opinion piece based on libertarian ideas and did not fulfill it's promise at the beginning of revealing history which no one ever had heard before. Disappointing and misleading.
December 11, 2024
This is an Austrian examination of the causes of the Great Depression and evaluation of the actions taken initially by Herbert Hoover and then FDR.
Murphy argues that the bubble that burst on October 29, 1929 was due to the easy money policies of the Federal Reserve in the late 1920s. The economy was yes, roaring early on, but it was loose lending at low interest rates that led to the collapse of the stock market.
Hoover first encouraged corporations across America to maintain the wages of their employees. Business could not propose pay cuts to their employees. This left business no option but to fire employees in order to stay in business. Then the passage of the Smoot Hawley act further increased unemployment when export trade collapsed.
He looks at the policies of a decade earlier in the depression of 1920-21. That depression only lasted 20 months. And it was a severe one. He also makes comparisons to Canadian employment during the same period.
He describes Hoover’s policies as Keynesian, despite the fact that John Maynard Keynes was not yet on the scene. FDR did not really do anything terribly different from Hoover; he basically did Hoover on steroids.
Five years into the Great Deal, unemployment was higher than it was in 1929. How effective then were his policies. Murphy also looks at bank failures and compares the data to that of Canada. At the time the government did not allow branch banking in the US. So, if the local business or crop failed, the bank closed. Not so in Canada.
This is an interesting history. Some I had read before. Notably, he mentions the random way that FDR set the gold price from month to month. That was also mentioned in Amity Shlaes’ book, The Forgotten Man.
Murphy argues that the bubble that burst on October 29, 1929 was due to the easy money policies of the Federal Reserve in the late 1920s. The economy was yes, roaring early on, but it was loose lending at low interest rates that led to the collapse of the stock market.
Hoover first encouraged corporations across America to maintain the wages of their employees. Business could not propose pay cuts to their employees. This left business no option but to fire employees in order to stay in business. Then the passage of the Smoot Hawley act further increased unemployment when export trade collapsed.
He looks at the policies of a decade earlier in the depression of 1920-21. That depression only lasted 20 months. And it was a severe one. He also makes comparisons to Canadian employment during the same period.
He describes Hoover’s policies as Keynesian, despite the fact that John Maynard Keynes was not yet on the scene. FDR did not really do anything terribly different from Hoover; he basically did Hoover on steroids.
Five years into the Great Deal, unemployment was higher than it was in 1929. How effective then were his policies. Murphy also looks at bank failures and compares the data to that of Canada. At the time the government did not allow branch banking in the US. So, if the local business or crop failed, the bank closed. Not so in Canada.
This is an interesting history. Some I had read before. Notably, he mentions the random way that FDR set the gold price from month to month. That was also mentioned in Amity Shlaes’ book, The Forgotten Man.
March 5, 2019
A great read! Easy to follow, with a well told narrative!
Without over-complicating the subject matter for the untrained reader (such as myself) the book is still able to dispel Keynesian and Monetarist myths by pointing out both that they are theoretically untenable and, almost more importantly, do not match the facts of the Great Depression and New Deal.
The book also contains info boxes which highlight the humor, insight, and most of all, stupidity, of popular American political figures of the time.
I am only wondering what makes this guide "Politically Incorrect." The book even admits that the U.S. may have been justified in entering the second world war! (It does not go so far as to actually make this claim, and as I understand it, author, Robert Murphy, would not make this claim himself.) Maybe in American circles these topics are much more touchy but I can't really imagine that "polite society" would turn their nose at me if I brought up the subject matter of this book.
Without over-complicating the subject matter for the untrained reader (such as myself) the book is still able to dispel Keynesian and Monetarist myths by pointing out both that they are theoretically untenable and, almost more importantly, do not match the facts of the Great Depression and New Deal.
The book also contains info boxes which highlight the humor, insight, and most of all, stupidity, of popular American political figures of the time.
I am only wondering what makes this guide "Politically Incorrect." The book even admits that the U.S. may have been justified in entering the second world war! (It does not go so far as to actually make this claim, and as I understand it, author, Robert Murphy, would not make this claim himself.) Maybe in American circles these topics are much more touchy but I can't really imagine that "polite society" would turn their nose at me if I brought up the subject matter of this book.
April 16, 2025
Five stars only because economists have always confused the hell out of me and/or put me to sleep, and this one did neither. Fascinating and engaging. That said, the conspiracy theories about ssshhhh you’re not supposed to be reading this (says who?) and the liberal media and liberal historians and liberal democrat threats to our way of life, well, it’s a little thick. Make your point and move on. But maybe they need that to sell books to their target libertarian audience. Also the scholarly incest is aggravating. I’ve read 3 others in this PIG series and the authors all quote each other, comment on the greatness of each others’ books, and use the same libertarian source material from Mises, Rothbard, etc. Still… good book with, yes, an outlook that I knew existed but didn’t know much about.
March 21, 2025
Great summary of the Raw Deal. The truth about FDR that you won’t find in many places.
October 30, 2022
Simple examples make this a great read. Does (economic) history repeat itself? Yes, it does. The political landscape of the 1920s-1950s provided fertile soil for the "helpful" government expansion of programs. Programs that exist today with very little scrutiny. Murphy shines a spotlight on the programs, the trade-offs, and the interventions that made the Great Depression Great, and which seeded all the weeds that have reappeared this decade.
Displaying 1 - 30 of 64 reviews