Naked Economics: Undressing the Dismal Science

Choose one of the past recessions or depressions in the United States before this century (a few of the most significant occurred in 1807, 1819, 1825, 1837, 1857, 1873, 1884, 1893, 1907, 1929, 1973, and 1981) and analyze it according to the pattern Wheelan sets out in Chapter 9. That is, an initial shock to the system, followed by something that causes it to spread and worsen, and ending through some kind of intervention. Explain what the shock was, the catalyst that made it spread, and what action or series of actions helped to end it. Was anything learned from this particular downturn that could be applied to the future?

In Chapter 4, Wheelan briefly describes the trade-offs involved in creating a society like the one in the United States, with a higher economic growth rate but a weaker social safety net, versus one in a place like France (lower growth rate, stronger safety net). Which kind of society would you prefer to live in and why? Try to include as many aspects as possible, such as the economy and taxation, housing, health care, education, community, and so on.