I was following some links down a chain of unrelated topics and ran into this Wikipedia article: Great Depression in Australia - it happened in 1929 and was in part triggered by worldwide downturn that triggered the USA depression of 1929.
So I am reading along and come on the following:
... Australia, unlike the United States, did not embark on a significant Keynesian program of spending to recover from the Depression. Nevertheless, the Australian recovery began around 1932.
From depression to economic recovery in three years?
For giggles, I looked up the following: Great Depression in the United States
Here it is:
The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement.
Emphasis mine - and the money quote:
The economy reached bottom in the winter of 1932–33; then came four years of very rapid growth until 1937, when the Recession of 1937 brought back 1934 levels of unemployment.
Australia, not implementing any Keynesian programs, was on the road to recovery by 1932. The stimulus that the USA implemented prolonged our downfall and created an economic bubble which ran from 1933 through 1937. The bubble burst (as bubbles must always) and we were back to square one in 1937. The depression did not fully end until 1941.
And people still think that John Maynard Keynes is a genius? It is old-school Austrian economics for me - that works. During a depression (or recession for that matter), the last thing we need is for the Government to spend money.
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