« 20081006 Economics 113 Lecture: Post-Civil War Growth, Industrialization, Wages, Profits, and Inequality | Main | Great Depression Problem Set »

October 08, 2008

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Anny Chien

I am interested in the part of the economics crisis. In reality now we are facing the similar situation, and today's lecture made this topic more useful! And that's the reason I am taking history of economics. There are still so many things that were not solved during the past, and understanding the past can at least help us deal with what's happening now. And I just saw the news that Iceland might go bankrupt as a whole country due to the financial crisis we are facing now. I just want to know more detail about how did it happened before, and how did we solve it before, and why! And see if we can bring the past experience to save the financial crisis now! I wish we can hear more about it!

Eric Kim

Today's lecture provided me with new insight into the disaster of the Great Depression. I found myself drawing parallels between Andrew Mellon and Ben Bernanke, as they both have significant influence on economic policy in America. I do wonder how it is that Mellon's extreme plan of letting the economy crash was allowed to happen. Did he know that the consequences of executing his plan would be so disastrous? Ideally, I understand that it can "purge" the economy and teach banks to hedge properly in the future, but this not only punishes financial institutions and investors, but everyone who is a part of the United States economy.

Tina Phu

I thought lecture today gave me a clearer understanding of the Eugene White and Christina Romer articles. I was surprised at the similarity between the cause of today's current financial crisis and the cause of the Great Depression. What I also found interesting was the relevance of Karl Marx to the Great Depression, and Andrew Mellon's contribution to the Great Depression.

Vladislav Andreyev

I really enjoyed today's lecture, especially when you were talking about depression and crisis during our time and how you compare it with crisis during the 30's. Also it was interesting to hear about Melon and his views on unemployment.

Helen Wang

I really enjoyed the discussion comparing the crisis surrounding the Great Depression to our financial crisis today. It definitely puts everything in a different perspective especially with the example from Mellon and Hoover. It was interesting to see that Mellon believed that it was necessary to liquidate the financial system and allow it to fail and that a panic was not "altogether a bad thing." It would be interesting to see how this philosophy would have played out in our current economic state.

Eric Kim

Todays lecture provided me with new insight into the causes of the Great Depression. I did not know that the Great Depression was allowed to happen because of the influence of Andrew Mellon. With the current financial crisis that we are experiencing now, I find myself drawing parallels between Mellon and Bernanke because of the influence that they have on American economic policy. But I wonder, how is it that Mellon had enough influence to execute his "hands off" policy? Did no one see the disastrous effects that this plan would have on not only those financial institutions and investors being punished, but also on the entire American population?

Vladislav Andreyev

I really enjoyed today's lecture, especially when you were talking about depression and crisis during our time and how you compare it with crisis during the 30's. Also it was interesting to hear about Melon and his views on unemployment.

Vladislav Andreyev

I really enjoyed today's lecture, especially when you were talking about depression and crisis during our time and how you compare it with crisis during the 30's. Also it was interesting to hear about Melon and his views on unemployment.

Vladislav Andreyev

I really enjoyed today's lecture, especially when you were talking about depression and crisis during our time and how you compare it with crisis during the 30's. Also it was interesting to hear about Melon and his views on unemployment.

Vladislav Andreyev

I really enjoyed today's lecture, especially when you were talking about depression and crisis during our time and how you compare it with crisis during the 30's. Also it was interesting to hear about Melon and his views on unemployment.

Vladislav Andreyev

I really enjoyed today's lecture, especially when you were talking about depression and crisis during our time and how you compare it with crisis during the 30's. Also it was interesting to hear about Melon and his views on unemployment.

Vladislav Andreyev

Today's lecture

Chuming Wang

I think the lecture is so interesting today, especially you compared present economy with 1930 the great depression. We should find some revelation frome history to face today's problem.

Sung Hyun Song SID: 19293647

I really liked how you focused on the similarities between the current financial crisis and the Great Depression. It seems like the only major difference is the role that the Fed plays in the economy these days. It was also interesting to hear about Mellon's role as the Secretary. I kind of hoped that you explain the different school of economic thought in more detail.

pierre mouillon

I thought today's lecture was really interesting. Indeed, talking about the great depression which the first really financial crisis that ever happened is very relevant to today's current event and especially today's financial crisis. I liked the comparaison between the two crisis and also I like the fact that you include early political economist thinkers in this course lectures like adam smith earlier and Marx today.

Michael Tom

It feels like all our financial problems have been around since forever, but just right now the problems are a lot bigger in proportion to the past. I stand behind Mellon in that letting the market and financial system fail was the best thing to do. Liquidation is the way to go, and those responsible should be punished and not "bailed out". I'm sure if I fully agree with his view that unemployment is a good thing, even though it is known to cause people to be more conservative with their spending habits which will help aid in an economy's recovery.

pierre mouillon

I thought today's lecture was really interesting. Indeed, talking about the great depression which the first really financial crisis that ever happened is very relevant to today's current event and especially today's financial crisis. I liked the comparaison between the two crisis and also I like the fact that you include early political economist thinkers in this course lectures like adam smith earlier and Marx today.

Bijan Madhani

I thoroughly enjoyed the parallels drawn between today's financial crisis and previous negative business cycles and the Great Depression. The periods of irrational investment that preceded market crashes in the past are particularly relevant to the causes of our current predicament.

Tran Ngo

It's little known that the Great Depression was allowed to happen--especially under the influence of Mellon. Students really just learn in history books that President Hoover at the time did nothing and consequently, received much negative attacks from the American public. It is very interesting because the situation they have now is so similar to today except that economists say that nothing like what's happening today has ever happened in history and the closest thing is the Great Depression. I'm very curious to see how the following months will play out and whether the government will continue throwing money at our large financial institutions.

Tran Ngo

It's little known that the Great Depression was allowed to happen--especially under the influence of Mellon. Students really just learn in history books that President Hoover at the time did nothing and consequently, received much negative attacks from the American public. It is very interesting because the situation they have now is so similar to today except that economists say that nothing like what's happening today has ever happened in history and the closest thing is the Great Depression. I'm very curious to see how the following months will play out and whether the government will continue throwing money at our large financial institutions.

Namita Bhasin

Two comments about today's lecture:

I don't think you did the railroads justice, haha. Their import was underdefined as 'two metal rails with a bunch of wooden ties' and, regardless of the cheating scoundrels that proliferated that silly infrastructure across the country, the US would inarguably not be anything like the country it is today without them (not a terribly optimistic statement at the moment, of course, but you get the idea).

Second, the comparison to the Great Depression. After your lecture on How We Got Into This Mess (which was a great lecture that I intended to send off to everyone I knew except that the mic died), I actually thought there was less of a parallel between 1929 and today; but now I'm reconsidering that [again]. I suppose the gloomy lesson to be learned from both is to never again trust whatever the infallibly safe investment of the era is.

P.S. Did you have a chance to find out about any PC-friendly program like Skim? Thanks!

Stephen Liu

Hi, I enjoyed today's lecture since it covered a topic that is similar to our current financial markets. It provided me a new viewpoint in comparison to what happened in the past couple weeks. Our current economic bailout is not something that Mellon would have agreed with. With his viewpoint, free market was allowed to fully take place and force liquidation, while our current Fed has decided to buy securities that are almost dead. With what happened in the past and what happened in present day, it has showed me how we can analyze economic aftermaths and make better decisions down the road.

Courtney Groden

I found it aptly timed that today’s lecture about the Great Depression was scheduled during the greatest economic crisis since. It was also interesting to hear how the beliefs of Marx inadvertently instigated the Great Depression.

Sung Hyun Song SID: 19293647

I really liked how you linked current financial crisis with the Great Depression. It seemed like the only difference now is that we have a reliable central banking system. It was also interesting to see the approach that Mellon had taken. It made me realize how different schools of economic thoughts could be.

Kristy Wen

This lecture provided a lot of insight about the Great Depression- previously, I had not known how Marx's influence affected Mellon, whose decision in turn allowed the Great Depression to happen. The parallels between the Great Depression and today's financial crisis are clearer, now. It is amazing to think that there are so many similarities, yet no one predicted or prepared for such a financial crash, even with all the warning signs. However, I wanted to know more about why The Great Depression became a devastation, instead of a recession.

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