Long-term supply-side implications of the Great Depression

Abstract

We compare the experiences of the US and UK during and after the Great Depression, with particular attention to overall productivity growth, industrial organization, the growth of human capital, and protectionism. We discover many implications of the Great Depression experience and policies for post-war economic activities. We conclude that one should never waste a good crisis in the implementation of one's own economic policies, labour-market policies should encourage the formation of human capital, and it is dangerous to assume that other countries will not change in an economic crisis