3 of 5 people found the following review helpful:
Brief monetarist review of 1930s US economic policy, 2007-11-23
This is a brief and relatively easy to read monetarist review of 'the great depression'. It is unclear to what the title calls 'rethinking' might refer. My guess is that the author is rethinking Keynes, but it might be FDR. Since the difference between Keynes and monetarists is subtle to all but Keynesians and monetarists, I wouldn't recommend this as a introduction to the subject, nor as a survey.
The text presents a matter of fact narrative, starting in 1929 and ending with the war efforts of 1940. The author find the source of economic contractions (recessions and depressions) in monetary policy established on a country by country basis. These contractions were caused by a shrinking money supply which could be correlated to effort to maintain a fixed relationship between gold and the national currency. Unaware of the relationship between money supply and economic goals (full employment, growth, etc), both Hoover and FDR made the necessary economic correction prolonged and painful. According to the author, the misguided new deal programs started by FDR have taken on a life of their own. The problems posed by 'New Deal' government programs consumes most of the concluding remarks. To end the book, Smiley writes "What failed in the 1930s were governments, in their eagerness to direct activity to achieve political ends... Attempts to stop international financial markets from working through the gold standard brough on the depression. Government efforts to combat the depression ... made the depression much longer and more severe in the United States. Governemnt attempts to reshape American society ... helped create a depression with the depression.'
Though one might think this come across as a polemic against FDR and what the author calls 'socialism', the author takes pains to show that everyone, including all the economists, misunderstood the 'depression'. Despite his confident narrative, the author doesn't exclude himself in this assessment. In a telling comment near the end of the book, Smiley states 'Still, our continued inability to develop econometric models that can accurately predict contractions means that we will not be free of them.' In other words, argues that no one knows what caused the depression. All he can do is point out the errors of various theories.
4 of 6 people found the following review helpful:
Excellent introduction to the Great Depression, 2006-03-27
Smiley has done a fantastic job with this book. It is well organized and very easy to read. He makes a statement and then follows up with the data and information necessary to support that statement. The second chapter on the cause of the great depression is my favorite and after finishing the book I went through that chapter again to really drill the information in. This book should be required reading for all college students. I normally give books away after reading them but I won't be giving this one away.
32 of 35 people found the following review helpful:
new look at country's worst crisis, 2004-03-05
Based on new theories, Smiley has re-examined and re-assessed the forces that led to and prolonged the Great Depression. In clear non-technical prose, he shows what happened and why.This short book (163 pages plus sources and index) is divided into five chapters. Chapter 1 gives a brief overview of how the worldwide depression began and how it created a domino effect throughout Europe and the U.S. Nothing new here-- in fact, this is basic stuff any high schooler should know.
Chapter 2 is a more detailed examination of the economic crisis and the forces which led to it. Smiley explains the situation in basic terms that anyone can understand, allowing us to see the tragedy unfolding step by step.
Chapters 3 and 4 show how President Roosevelt (who had little knowledge or experience of economics) attempted to pull the country out of this deep economic slump. Though some programs were successful, some were not, and only serve to create a depression within a depression in the mid-30s.
Chapter 5 examines the legacy of the governmental response, and how economic policies initiated during this period has affected this country for decades afterward, and how certain government programs still exist long after their usefulness has passed. An examination of post-war analysis shows how Keynesian economic theory and government studies have misinterpreted the factors which brought this country back to recovery. He also examines the question of whether such an event can happen again, concluding that-- based on subsequent economic downturns-- it probably won't, though it can happen again should future leaders ignore the warning signs and lessons of the past.
A fascinating and rewarding book, even for those who have little or no knowledge of economics.
6 of 11 people found the following review helpful:
Eye opening, 2004-03-04
Smiley discusses the cause the the Great Depression, and the effects of the New Deal in prolonging it. He summarizes the findings of the latest academeic research, over the past few decades. He does this well and quite clearly, in a non-polemical way.
No math is involved.
6 of 8 people found the following review helpful:
Draws upon recent technical analysis, 2003-10-13
Gene Smiley's Rethinking The Great Depression blends history and economics in a survey which draws upon recent technical analysis to consider new ideas about the roots of the Depression. The efforts of the New Deal to combat the crisis, the underlying foundations of the Depression, and misguided monetary policies which prolonged it accompany refutes to popular beliefs - such as the positive view of World War II as a key to ending the crisis.