The History of the Depression

There was a recession in 1921. It would have been a depression had the government done in 1921, what it did in 1929. Nobody does what Coolidge did in 1921 because that worked. But that involved less government, not more. So nobody wants to try that. We're experiencing something now that we don't normally experience unless something bad is happening. That's one of the reasons we're experiencing it. And so you can't blame it on the Fed, but the money supply did contract and it was a rough year.