THE FORGOTTEN DEPRESSION, 1920-1921
By Michael S. Coffman, Ph.D. and Kristie Pelletier
August 9, 2011
Progressivism emerged in the late 1800s in the United States and led to the first major depression in the twentieth century from 1920-1921. Prosperity was restored in 1922 by doing exactly the opposite of what we are doing today. So why haven’t we heard of it?
Progressives believe in big government, big social programs, heavy taxation, and especially government control of as much as possible. The depression of 1920 was the result of this ideology. Known as the Forgotten Depression of 1920, it resulted from the progressive policies implemented by President Woodrow Wilson from 1913 to 1921. The $14.5 trillion debt today is the result of progressive control of Congress, the White House and the Judiciary since the days of ultra-progressive Franklin D. Roosevelt.
Wilson advocated what later became known as Keynesian economics. Keynesian economics is derived from the economic theories of John Maynard Keynes in the 20th century, who, during Wilson’s presidency and WWI, was considered a brilliant economist in the British Treasury. Keynesian economics is the model of choice by progressive Democrats and Republicans alike; including President Barack Obama.