Als je aan een AI vraagt wat de Oostenrijkse School verklaring is voor de crash van 1929 en de Grote Depressie krijg je het volgende antwoord:
The Austrian School of economics, led by economists such as Ludwig von Mises and Friedrich Hayek, attributes the crash of 1929 to the monetary policy of the Federal Reserve and the resulting credit expansion. Here's a summary of their explanation:
1. **Artificial credit expansion**: The Austrian School argues that the Federal Reserve, established in 1913, began to expand credit artificially by lowering interest rates and increasing the money supply. This led to a credit boom, where banks extended more loans to investors and businesses, fueling a speculative bubble in the stock market.
2. **Malinvestment**: As credit expanded, investors and businesses made malinvestments, pouring money into projects and assets that were not sustainable in the long run. This included investments in the stock market, real estate, and other speculative ventures. The Austrian School argues that these malinvestments were made possible by the artificially low interest rates and the abundance of credit.
3. **Overconsumption and underproduction**: The credit expansion also led to overconsumption and underproduction. As people had more access to credit, they consumed more goods and services, but the production of goods and services did not keep pace. This led to a mismatch between production and consumption, which ultimately contributed to the economic downturn.
4. **Price distortions**: The Austrian School argues that the artificial credit expansion and the resulting malinvestments led to price distortions in the economy. Asset prices, including stock prices, became detached from their underlying values, creating a bubble that was destined to burst.
5. **The inevitable correction**: When the bubble finally burst in 1929, the economy was forced to correct itself. The correction was painful, as the malinvestments were liquidated, and the economy was forced to adjust to the new reality. The Austrian School sees the Great Depression as a necessary correction to the artificial boom that preceded it.
6. **Government intervention**: The Austrian School also argues that government intervention, including the Smoot-Hawley Tariff Act of 1930, which raised tariffs on imported goods, exacerbated the economic downturn. The tariffs led to retaliatory measures from other countries, which reduced international trade and deepened the depression.
In summary, the Austrian School explanation for the crash of 1929 emphasizes the role of artificial credit expansion, malinvestment, and price distortions in creating a speculative bubble that ultimately burst, leading to the Great Depression. They argue that government intervention, including monetary policy and protectionist trade policies, contributed to the crisis and prolonged the economic downturn.