The 1920 1921 Deflation That Big Government Could Not Stop

When prices crashed after World War I, the US didn't bail out businesses or print money. Instead, the government cut spending, raised rates, and let the economy reset. The result was a brutal 18-month contraction followed by one of the fastest recoveries on record. Lucas and Luna unpack the 1920-1921 depression—a forgotten episode that challenges every assumption about how to fight a recession. They look at how the Federal Reserve refused to act as lender of last resort, why wages fell 20 percent without mass unrest, and whether modern policymakers could even consider such a hands-off approach today. This is not a how-to guide, but a provocative case study in economic pain and rebound. #1920-1921Depression #GreatDepression #WarrenHarding #AndrewMellon #FederalReserve #Liquidationism #Deflation #EconomicRecovery #PostWWI #MonetaryPolicy #FiscalPolicy #LaborMarket #PriceAdjustment #Economics #BusinessCycle #FexingoBusiness #BusinessPodcast #EconomicHistory Keep every episode free: buymeacoffee.com/fexingo