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Review of Ravi Batra, The Great Depression of 1990 (Simon and Schuster, New York, 1985)

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Author Info
J. S. Armstrong (The Wharton School)

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Abstract

The Great Depression of 1990 was on the New York Times best-seller list for non-fiction in the summer of 1987. It follows a standard formula for best sellers in forecasting: Forecast a great disaster, and include a formula for redemption. If the disaster occurs, you can say, <93>I told you so.<94> If it doesn't occur, you say, <93>It is good that they listened to my advice. I saved them.<94> How can you lose? When I first saw this book, it occurred to me that it was a hoax. Here is a man claiming to be a highly respected economist who makes a forecast and provides a date. The forecast is that the great depression will occur in 1990. A variety of paths to redemption are provided, the most important being that rich people should have to give up much of their riches, for it is the concentration of wealth that causes business cycles. This is a fact that Batra claims to have discovered. Batra suggests that society should tax this wealth. On the other hand, he also provides advice to rich people on how to preserve their wealth <96> put it in cash, then store it in a safe deposit box and at home. Businessmen should avoid long-term investments.

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Paper provided by EconWPA in its series General Economics and Teaching with number 0502021.

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Length: 3 pages
Date of creation: 04 Feb 2005
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Handle: RePEc:wpa:wuwpgt:0502021

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Keywords: Ravi Batra;

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A - General Economics and Teaching

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References listed on IDEAS
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  1. Bell, John G & Seater, John J, 1978. "Publishing Performance: Departmental and Individual," Economic Inquiry, Oxford University Press, vol. 16(4), pages 599-615, October.
  2. JS Armstrong, 2004. "The Seer-Sucker Theory: The Value of Experts in Forecasting," General Economics and Teaching 0412009, EconWPA. [Downloadable!]
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