An Historian's Perspective

“If you want to understand geology, study earthquakes.” [1] That quote from Ben Bernanke explained his view on the centrality of the understanding of why one should examine the Great Depression if one were going to understand economics. To that end, Milton Friedman and Anna Jacobson Schwartz were part of what is known as the Monetarists or the Chicago school of economics.   Together they wrote A Monetary History of the United States, 1867-1960 in dealing with the causes of the Great Depression.   This book “had a profound impact on the way economists think about monetary theory and policy.” [2] In their work, they revolutionized the way in which many economists viewed monetary policy in light of the Great Depression.   Hugh Rockoff, in a review of their work, argued that their view became “accepted, at least in some measure, by most economists.” [3]   The thought was simply that a central bank should keep interest rates low during times of high unemployment, and...

“His Ears Have Been Slashed -- His Toes Cut Off -- His Eyes Punched Out -- His Bones Broken and His Face Smashed.  A Description of What Has Happened to the ‘DEMON of HIGH PRICES.” [1]   Clarence Saunders revolutionized the shopping experience for Americans.  Several American television shows such as Little House on the Prairie , among others, portrayed a shopping experience in which the customer entered the general store.  The patron would request the items he or she wanted.  The employee would then obtain the goods from the stock and sell them to the client. His aim was to “MAKE IT POSSIBLE FOR YOU TO GET BY THE CHECKER’S DESK MUCH QUICKER AND WITHOUT ANY ‘JAMMING’ OF FOLKS BEHIND YOU.” [2] Clarence Saunders created such advertisements and placed them into newspapers in an attempt to create the modern supermarket experience.  In Saunders’s supermarket, one could go into the store and browse the shelves and select from a wider variety of foods and brands t...