How to End the Crisis, by Stephanie KeltonQuicklink submitted by Ethan Hollow Permalink
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|Marriner Eccles was Chairman of the Federal Reserve under President Franklin D. Roosevelt. This note consists of excerpts from an address he gave to the US Senate's Committee on Finance in 1933 before he was called to Washington for public service by FDR.'The current excessive debt structure has obtained its present astronomical proportions due to an unbalanced distribution of wealth during our years of prosperity. Too much of the product of labor was diverted into [unproductive] investments, and as a result what seemed to be our prosperity was maintained on a basis of abnormal credit both at home and abroad. When the crisis finally hit, debtors were forced to curtail their consumption in order to reduce their debts. This naturally has led to falling prices and increased unemployment. And unemployment further decreases the consumption of goods, which further increase unemployment...'|
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