If you are seriously trying to unravel the reasons behind the Crash of 1929 and the causes of the Great Depression which followed, this will open your eyes. The project–a banking interpreter’s searching examination into a mystery daunting to economists–sifts even the forbidden causes.
In hindsight, the causality blank-out defies comprehension. Economists and historians were able to look back on prohibition, the Crash and the Depression without noticing the causal links between them–assuming they coexisted by the sheerest of coincidence. Back then the connection between prohibition and the economy was asserted daily and hotly debated.
“No one man will ever realize how big it is, so lay off.” –Al Capone, July 1930
“When the time comes that we can look at this depression objectively it will be our duty searchingly to examine every phase of it.”—Herbert Hoover, June 15, 1931.
Maryland Senator Millard Tydings used statistical data to refute every argument advanced by proponents of prohibition. He also documented hundreds of cases of legalized murder (or extrajudicial killing) of ordinary citizens and bootleggers by wielders of police powers. His 1930 book examines economic effects and how the 18 new powers granted Congress by the looter amendments to the Constitution plus the character of the American people doomed economic dictatorships from the outset.
Defending shoot-first prohibitionism was Herman Feldman, Professor of Industrial Relations at the Amos Tuck School of Administration and Finance, Dartmouth College–1927. The way he tells the story, all of the postwar economic growth was due to the beneficial effects of national prohibition. After the Crash, his output ceased.
Prohibition and the Crash also sheds light on the causes of the Panic of 1893, Panic of 1907, and several lesser financial convulsions. It just might help to understand recent crashes during the Reagan (1987) and Clinton (2000) administrations, for the same ingredients were there.
Never is anything but government responsible for causing economic collapse. The fact was widely known and published in 1775 by Adam Smith:
Great nations are never impoverished by private, though they sometimes are by public prodigality and misconduct.
About taxes Smith reflected:
It is the highest impertinence and presumption, therefore, in kings and ministers to pretend to watch over the economy of private people, and to restrain their expense, either by sumptuary laws, or by prohibiting the importation of foreign luxuries.
The worst Stock Market Crashes began in 1929 two weeks after the Jones 5 and 10 Law (Increased Penalties Act) was signed on March 2 (two days before Herbert Hoover took office as President). But the average chart slope went from positive to negative on or about September 2, 1929, as former prosecutor Mabel Willebrandt explained enforcement tactics in “The Inside of Prohibition” syndicated in 20 major newspapers. Once investors understood the Income Tax and asset forfeiture were weaponized against beer, the collapse began about September 2 and accelerated. See for yourself.
For financial, tax and banking translations, look me up.