I had a few patients who were prostitutes. I remember one well-dressed lady in her 40s, whose profession I asked in the course of my history-taking.
“Dominatrix,” she said.
She was obviously very good at it because she had an international clientele, including, for example, a judge in Alabama. She told me that she never went anywhere in her car without her kit, for she might receive an emergency call at any time from Hong Kong or South Africa. You might have thought that being whipped by one woman in black fishnet stockings was as good as being whipped by another, but apparently this was (and I presume still is) not so: It’s the words and gestures that go with the whipping that count as well.
This activity of hers gave her a very good living (her car was far better than mine); she was sending her daughter to private school. I admired her enterprise and thought of Sor Juana Inés de la Cruz. Was she or the judge in Alabama to blame? Was either of them to blame at all?
Of course, she wasn’t typical of the profession, and hard cases, as they say, make bad law. But I am not at all sure that I saw the poor prostitutes in my street as merely victims, as the new French law would have them. Not everyone with their life history becomes a crack-taking prostitute. This does not mean that I did not pity them for what they had become. If we can truly sympathize only with those who have done nothing to contribute to their own fate, we shall have very restricted sympathies indeed.
Theodore Dalrymple, “Turning Tricks Into Sympathy”, Taki’s Magazine, 2016-04-09.
April 29, 2019
QotD: Prostitution
April 27, 2019
QotD: When McDonald’s came to Moscow
[In an NPR broadcast] McDonald’s is positively portrayed as being an excellent, almost heroic, force for good. McDonald’s manner of doing business is celebrated as changing social norms for the better – for making the world (or at least Russia) not only a more consumer-friendly place, but also a more pleasant, a more polite, a more respectful, and a (yes) more happy place.
Listeners are reminded at the start of the clip that Americans smile a lot, including at strangers. Russians – and, especially, Russians under Soviet domination – did not smile very much. Then McDonald’s opened in Moscow in 1990. McDonald’s trains its workers to smile at customers, and to be polite and friendly. We then learn – from one of the Russians who worked at that McDonald’s in Moscow – that that restaurant became a place of pleasant refuge for Muscovites. The simple, smiling friendliness and politeness that Americans take for granted was, in Russia, actively sought after by many Russians and embraced by their choosing to dine at McDonald’s.
Commerce – voluntary exchange – is essential for what Deirdre McCloskey calls “market-tested betterment.” This betterment, however – and Deirdre would agree – is manifested not only in new and better material products but also in the ways in which businesses treat consumers. In market economies consumers are valuable to businesses; in these economies consumers are treated by businesses as respected guests. In contrast, in non-market economies – in economies in which prices and profits are prevented from moving in market-clearing directions – consumers are treated by ‘businesses’ as repellant pests.
Don Boudreaux, “Doux Commerce, avec Sourires“, Café Hayek, 2016-06-17.
April 24, 2019
Opponents claim Doug Ford is using booze liberalization as a distraction … if so, it’s working well
Chris Selley documents just how Ontario Premier Doug Ford’s opponents are unable to ignore the (personally teetotal) Ford’s alcohol-related proposals:
A peculiar affliction has broken out among Ontarians who think their relatively new government is devoting far too much time and attention to liberalizing alcohol laws: They can’t stop talking about it.
I don’t mean people with entirely fair public health concerns (though I think those concerns are pretty marginal, given the modest changes). And I don’t mean the pearl-clutching hordes who think allowing alcohol consumption in parks will lead to mayhem, no matter how civilized the results might demonstrably be elsewhere. (That peculiarly Ontarian crew has certainly made itself heard, though, and it seems to include a surprising number of progressive millennials.)
I mean people who didn’t have particularly strong views one way or the other about 9 a.m. mimosas, tailgate parties, drinking in parks or buying beer at the corner store, or might even have supported some legislative relaxation, but who now can’t stop railing against them even as they deplore the government’s actions on objectively more serious files.
[…]
On letters and op-ed pages, you’ll find the topic of booze popping up in all sorts of places it objectively doesn’t belong — not if one doesn’t want to be distracted, anyway. It seems to lead people down all sorts of strange blind alleys. One Toronto Star columnist noted that neither Premier Doug Ford nor Finance Minister Vic Fedeli will “touch a drop themselves,” but that “they are making it easier for you to access just in time for breakfast, happy hour, or a nightcap.” So what? Why would anyone want the premier’s or finance minister’s personal tastes and preferences influencing public policy?
Another Star columnist spent seven paragraphs sneering at the idea of tailgating in Ontario before declaring herself perfectly fine with the idea. “But,” she asked, “is tailgating what Ontario needs?” Is that the standard, then? Government shall only allow the masses such entertainments as they “need”?
Using booze as a “distraction” is not a new tactic. It became a running joke during Kathleen Wynne’s tenure that whenever things were going (especially) badly for her government, she would pop up to announce another batch of supermarkets authorized to sell beer and cider (and sometimes, though much more rarely, wine!).
April 22, 2019
Internal challenges to Microsoft’s current discriminatory hiring practices
At Quartz, Dave Gershgorn looks at how Microsoft is facing internal dissent over their current hiring practices, which actively encourage discrimination against certain racial and gender groups:
Some Microsoft employees are openly questioning whether diversity is important, in a lengthy discussion on an internal online messaging board meant for communicating with CEO Satya Nadella.
Two posts on the board criticizing Microsoft diversity initiatives as “discriminatory hiring” and suggesting that women are less suited for engineering roles have elicited more than 800 comments, both affirming and criticizing the viewpoints, multiple Microsoft employees have told Quartz. The posts were written by a female Microsoft program manager. Quartz reached out to her directly for comment, and isn’t making her name public at this point, pending her response.
“Does Microsoft have any plans to end the current policy that financially incentivizes discriminatory hiring practices? To be clear, I am referring to the fact that senior leadership is awarded more money if they discriminate against Asians and white men,” read the original post by the Microsoft program manager on Yammer, a corporate messaging platform owned by Microsoft. The employee commented consistently throughout the thread, making similar arguments. Quartz reviewed lengthy sections of the internal discussion provided by Microsoft employees.
“I have an ever-increasing file of white male Microsoft employees who have faced outright and overt discrimination because they had the misfortune of being born both white and male. This is unacceptable,” the program manager wrote in a comment later. The Microsoft employees who spoke to Quartz said they weren’t aware of any action by the company in response, despite the comments being reported to Microsoft’s human resources department.
When contacted by Quartz, Microsoft pointed to comments by three company officials in the message-board threads. A member of Microsoft’s employee investigations team responded to the initial post in January, writing that the company does not tolerate discrimination of any kind. Another Microsoft staff member, who leads the team that helps the board of directors determine executive pay, explained the diversity-based compensation initiative. “Our board and executive leadership team believe diverse and inclusive teams are good for business and consistent with our mission and inspire-to culture,” she wrote. “Linking compensation to these aspirations is an important demonstration of executive commitment to something we believe strongly in.
April 16, 2019
‘Tis Eastertide, and so the professional miserablists are going after Easter Eggs, of course
In the Continental Telegraph, Tim Worstall tells the worried environmentalists that no, it does not make sense to ban Easter eggs — for their “wasteful” packaging — on environmental grounds:
One of the more silly of the current environmental concerns is the worrying about the quantity of packaging that goes into – or around – Easter eggs. There’s an underlying mistake being made here, one which none of the proponents of action have bothered to recognise, let alone think about. Which is, well, what’s the purpose? The point of all this human activity we call an economy?
As any economist could and would tell you we’re after the maximisation of human utility. Given the constraints placed upon us by reality – the availability of stuff with which to do things, technologies we know about to do things to stuff with – we want humans to be as happy as they can be. We want, in short to maximise the amount of joy in the world.
At which point, packaging. Sure, no doubt there’s a certain harm that befalls us all from the creation of packaging and its disposal. Why not? There are costs and benefits to everything of course. But that’s the point, while there may be costs there are also benefits. So, yes, OK, there are costs to packaging.
[…]
At no point is even consideration given to the idea that the packaged egg might produce that joy. Which, given that we do indeed go buy these things each year to give to each other, is odd, isn’t it? Why are we giving each other expensive – as opposed to cheap – chocolate? Because, obviously enough, the dressing of the chocolate is something that produces that joy.
We can even have a stab at quantifying matters.
The cost is 3,000 tonnes of packaging. We know what that costs us, the value of the landfill tax. Around £80 a tonne. So, call it quarter of a million pounds. Spending upon Easter eggs is some £400 million a year. The joy produced must be of greater value than that £400 million otherwise we’d not be spending it in the first place. And yes, £400 million is more than £250,000.
We thus have our answer to the prodnoses worrying about the cost of Easter egg packaging. Piss off matey, you’ve missed the point entirely.
April 11, 2019
What happens if you block access to all of Google’s IP addresses?
The answer is … not a lot, or at least not quickly. So many companies use Google’s services in the background that even if you can get a particular site to work for you, it’ll very likely be as slow as a mid-90’s dial-up connection. Stephen Green reports on someone’s live experiment with a Google-less internet:
Behind the scenes, [Gizmodo’s Kashmir] Hill’s specialty VPN blocked her devices from trying to ping Google’s servers more than 15,000 times — in just the first few hours. After a week, it had stopped more than 100,000 attempts to share data with Google. And to repeat, this is after Hill had stopped using any of Google’s apps or services. The company has its tendrils all throughout the internet.
As Hill describes the process in her report to Gizmodo:
I migrate my browser bookmarks over to Firefox (made by Mozilla).
I change the default search engine on Firefox and my iPhone from Google — a privilege for which Google reportedly pays Apple up to $9 billion per year — to privacy-respecting DuckDuckGo, a search engine that also makes money off ads but doesn’t keep track of users’ searches.
I download Apple Maps and the Mapquest app to my phone…
I switch to Apple’s calendar app.
I create new email addresses on Protonmail and Riseup.net (for work and personal email, respectively) and direct people to them via autoreplies in Gmail.
Hill did literally everything an internet-connected human being can do to disconnect themselves from Google. But you don’t have to be a Google customer in order to have the company garner 100,000 little bits of data about you every single week. Or as Hill herself says, “Google, like Amazon, is woven deeply into the infrastructure of online services and other companies’ offerings, which is frustrating to all the connected devices in my house.”
The fact is, you aren’t Google’s customer: You and your data are Google’s product, served up on an electronic platter to advertisers and God-Only-Knows-Who-Else… even if, like me, you’ve boycotted all of the company’s little data-sniffing products.
As a libertarian, I have philosophical issues with the whole idea of antitrust. But when a company grows so big and so pervasive that you can’t avoid becoming its tool — even when going to the extreme lengths Hill went through — then I can draw only one conclusion, expressed in three words.
Break. Them. Up.
April 8, 2019
Comparing the economic performance of China’s private versus state-owned companies
If you’ve been following the blog for a while, you’ll know that I’ve long been skeptical of any official economic statistics coming out of China. The reasons for my skepticism are that vast areas of the Chinese economy were owned or controlled by the state and reporting from those entities was performed through layers of officials whose positions and personal well-being depended on those reports being as positive as possible. In a capitalist system, announcing false production or profit figures will eventually be detected (sometimes not as soon as we’d like), and the company loses the trust of customers, suppliers, and banks, making survival much more difficult. In a state-owned organization, everyone in the hierarchy has a vested interest in false information not being uncovered or reported. In a private firm, you could lose your job … in a state-run enterprise, you could be shot or sent to a “re-education camp” along with all your family. The incentive to lie is much stronger when your risks are that high.
Tim Worstall comments on a recent report that compares the performance over time of Chinese private companies, privatized state companies, and companies that are still state-run:
That China has relaxed the governmental grip upon industry in recent decades is true. That China has become very much richer in recent decades is also true. The two are not a coincidence, there’s causality there. However, we hear often enough that it’s the residual control over industry by the government that drives that success. Sure, OK, so the bureaucracy doesn’t specify prices or detailed actions but the general guidance provided by a politically driven bureaucracy explains the outperformance.
Except it doesn’t. Those former state industries still enjoying that government guidance perform worse than the free market firms sadly lacking it. State planning is keeping China poorer than it need be, not aiding its growth.
The report he’s commenting on:
Changing the tiger’s stripes: Reform of Chinese state-owned enterprises in the penumbra of the state
Ann Harrison, Marshall W. Meyer, Will Wang, Linda Zhao, Minyuan Zhao 07 April 2019The conventional wisdom that privatisation of state-owned enterprises reduces their dependence on the state and yields positive economic benefits has not always been borne out by empirical work. Using a comprehensive dataset from China, this column shows that privatised SOEs continue to benefit from government support in the form of low-interest loans and subsidies relative to private enterprises that have never been state-owned. Although there are clear improvements in performance post-privatisation, privatised SOEs continue to significantly under-perform compared to private firms.
Much of China’s economic growth has been driven by the emergence of a vibrant private sector, today accounting for approximately 60% of GDP and 80% of employment. Conventional wisdom holds that privatisation of state-owned enterprises (SOEs) reduces their dependence on the state and yields positive economic benefits including enhanced firm performance, productivity, and innovation. The pro-privatisation argument is that the state either cannot monitor managers properly or chooses not to pursue efficiency because state interests take precedence over financial results (Boardman and Vining 1989, Vickers and Yarrow 1991, Shleifer and Vishny 1994). Empirical work, however, has produced mixed results on privatisation. For example, DeWenter and Malatesta (2001) found that, among the 500 largest firms globally in 1975, 1985, and 1995, private enterprises had significantly lower costs and higher profits than SOEs. Yet, when they examined a sub-sample of privatised firms, they found inconsistent results – performance increased post-privatisation, while leverage and employment increased mainly pre-privatisation. Market returns from privatisation also differed across countries, positive in Hungary, Poland, and the UK but insignificant elsewhere.
Our research on privatisation in China (Harrison et al. 2019) is unique in several respects. We analyse an extremely large sample of industrial firms, more than 3.5 million firm-years from 1998 to 2013, drawing on the Annual Industrial Survey conducted by the China National Bureau of Statistics. We compare privatised firms with firms that remained state-owned and firms that had never been state-owned. Most importantly, we compare both the performance and dependence on the state of privatised firms with firms having no prior state ownership. Overall, our results indicate selective performance gains from privatisation – privatised firms have greater productivity and are more likely to file patents than firms remaining state-owned even though their return on assets barely improves. The performance effects notwithstanding, privatised firms remain dependent on the state. Subsidies, concessionary interest rates, and loans granted to privatised firms remain at nearly the same levels as those to SOEs. Privatisation changes the behaviour of firms but not firms’ dependence on the state.
A graphical portrayal of the differing performance of the three types of Chinese companies from the report:
QotD: Why does US healthcare cost so much?
This is a hotly debated question in health care policy. Here’s my rough stab at it: the 1970s inflation interacted particularly badly with two pre-existing policy choices: the tax deduction for employer-sponsored health insurance, and Medicare.
Start with employer-sponsored health insurance, which is, as everyone knows, tax advantaged relative to salary, because your employer can deduct it as an expense, but you don’t have to show it as income on your taxes.
This was an incredibly dumb decision, but in the defense of the folks who made it in the 1940s, at the time, health insurance wasn’t very expensive, because the health care system couldn’t do all that much (and the female labor that ran hospitals was cheap due to discrimination, or in the case of nuns, basically free).
Come the 1970s, inflation started causing a problem called “bracket creep”. Back then tax brackets weren’t indexed for inflation, so as inflation went up, folks got pushed into higher and higher tax brackets, even though the buying power of their salary had stayed the same, or [had] gone down. This was great for the government (and is a big reason our deficits were not disastrous in the 1970s), but it was terrible for people, and led to the tax revolts that helped put Reagan in office.
But I digress. The point is that bracket creep made non-taxed benefits much more attractive relative to salary, so insurance started getting more generous. That process has continued for decades. Insurance used to be “major medical” that covered big ticket items like hospital stays. Now we expect it to cover the cost of going to the doctor for the sniffles. Well, if you insulate people from those costs, they will incur more of them.
Effectively, this raises demand for health care services. But the US system, decentralized and litigation-happy, is very bad at controlling the supply side. End result: high costs.
The other thing that happened is Medicare. The original legislation called for reimbursing services at “reasonable and customary rates”. This was a gold mine for doctors and hospitals. In New York, for example, doctors used to be forced to do charity care as the price of their admitting privileges at prestigious city hospitals. Once Medicare came into the picture, there was no need for that! Or to economize on beds; you could always find someone to fill them. Eventually, Medicare tried to crack down (http://reason.com/archives/2011/12/13/medicare-whac-a-mole), but by then, it was damned hard to cut physician and hospital incomes, in part because they had made decisions based on their — like building new hospitals with all private rooms — that couldn’t be undone. Our cost base is permanently higher, and politically, we have shown no will to slash provider incomes. So even though our growth rate is about average for the OECD, we’re growing from a much higher level.
Megan McArdle, “Ask Me Anything”, Reddit, 2017-04-10.
April 7, 2019
Justin’s SNC-Lavalin swamp … how deep does it go?
For a penny-ante scandal where there’s no hint of sexual impropriety or unmarked bundles of bills being passed along in brown paper bags, Justin’s SNC-Lavalin scandal looks more and more interesting the more we look at it:
A game-changing bombshell lies buried in the supplementary evidence provided to the House of Commons Judiciary Committee by former Attorney General Jody Wilson-Raybould.
It has gone virtually unreported since she submitted the material almost a week ago. As far as we can find, only one journalist — Andrew Coyne, columnist for the National Post — has even mentioned it and even then he badly missed what it meant, burying it in paragraph 10 of a 14 paragraph story.
The gist of the greatest political scandal in modern Canadian history is well-known by now. It’s bigger than Adscam, the revelation 15 years ago that prominent members of the Liberal Party of Canada and the party itself funneled tens of millions of dollars in kickbacks into their own pockets from federal spending in Quebec sponsoring ads promoting Canadian unity. That was just venal politicians and a crooked political party helping themselves to public money.
The Trudeau-SNC-Lavalin scandal is so much more, involving the corruption of the supposedly non-partisan civil service, and even the judiciary, for the political benefit of a disgraced political party, and a cover-up endorsed, encouraged and actively engaged in by the sitting Members of Parliament of that political party.
[…]
Which brings us to the ticking-timebomb-evidence the committee and the public didn’t get to hear.
In between the appearances by Butts and Warnick, Wilson-Raybould testified to getting a report from her chief of staff who had had a meeting with Butts and Trudeau’s chief of staff Katie Telford. They aggressively pushed the attorney general to get an “outside” opinion from someone like the retired Chief Justice of the Supreme Court, Beverley McLachlin, on dropping the criminal charges against SNC-Lavalin in favour of a non-criminal plea deal.
Wilson-Raybould took contemporary notes of what her staff member told her.
“My COS (chief of staff…ed) asked what if the opinion comes saying “She can review it, but she shouldn’t” or simply “She can’t review it” end of story? Mr. Butts stated “It wouldn’t say that.”
BOOM!!!!!!
Read what Butts said again. And again. And again.
“IT WOULDN’T SAY THAT”
H/T to Halls of Macademia and Small Dead Animals for the link.
April 5, 2019
QotD: Debunking the “MSG is harmful” myth
The story of MSG is a true tragedy. The negativity associated with this delicious amino acid is due to a spurious study from 1968 that linked MSG with the “Chinese Restaurant Syndrome.” This study connected that gut-bomb feeling you sometimes get after eating Chinese food to MSG, despite the fact that the typically cheap Chinese food prepared in American restaurants is fatty and served in large portions, and (like any restaurant), the food can be spoiled. My mom theorizes that lots of MSG was used to cover up the fact that, say, shrimp was a day past its prime, and that the sick feeling was due to the food but got blamed on the MSG. There’s never been a scientifically rigorous study that’s linked MSG with any negative effects. MSG should be used frequently and added to anything that needs the flavor drawn out, especially soups. But it enhances virtually anything it touches: Once, eating pizza at home, a friend scanned my spice rack and saw a jar with white powder whose label, in my grandfather’s messy scrawl, read what looked like “MS6.” He sprinkled it on his pizza and came to find me, telling me that whatever MS6 was, it was the most amazing thing he’d ever tasted. Yes, MSG makes even pizza better.
Caitlin PenzeyMoog, “Salt grinders are bullshit, and other lessons from growing up in the spice trade”, The A.V. Club, 2017-04-06.
April 4, 2019
Ingram M10 & M11 SMGs: The Originals from Powder Springs
Forgotten Weapons
Published on 3 Apr 2019These SMGs are lots 1069 (M10/45), 1070 (M10/9), and 1067 (M11) at Morphy’s April 2019 auction:
https://www.forgottenweapons.com/ingr…After the commercial failure of Gordon Ingram’s M6 submachine gun in the early 50s, he would radically change the layout of his designs. Instead of a Thompson-lookalike Ingram’s M10 (the M7, M8, and M9 doing experimental prototypes only) would be a boxy and compact affair with a Czech-style telescoping bolt. It found little interest until a meeting between Gordon Ingram and Mitch WerBell resulted in WerBell demonstrating it to excited military audiences in Vietnam in 1969.
WerBell was an ex-OSS man who had started a company called Sionics, selling suppressors to the US military. He thought the combination of Ingram’s submachine gun and his suppressor would be a fantastic package, and he found plenty of interest among special operations personnel in Vietnam. He would create the Military Armament Corporation based at his farm in Powder Springs, GA and entice Ingram to join as his chief engineer. The result would be the .45ACP M10, a 9mm version of the M10 (made for use with subsonic 9mm ammunition), and a scaled-down .380 ACP M11 submachine gun.
MAC would have a short life, with all its assets sold at a bankruptcy auction in April 1976 – but it had plenty of time to create what would become an iconic gun – the Big MAC. Many imitations and copies would follow, but Powder Springs was the home of true original Ingram M10 and M11 submachine guns!
http://www.patreon.com/ForgottenWeapons
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Contact:
Forgotten Weapons
PO Box 87647
Tucson, AZ 85754
March 30, 2019
The EU’s copyright regulation is a stalking horse for online censorship and control
To the amazement of many non-EU observers, the European Parliament passed blatantly authoritarian and corporatist changes to the rules on copyrights that will have potentially vast impact on the internet across the world, not just inside the EU. At City A.M., Kate Andrews explains why this is such bad news for all internet users:
The two most controversial points in the law – Article 11 and Article 13 – are almost certain to stifle digital activity, and interfere with the free way that people currently use online platforms.
Article 11, known as the “link tax”, would make online platforms compensate press publishers for links and article content posted on their sites.
As my colleague Victoria Hewson highlighted in her latest briefing, this approach has been “widely criticised as a distortive measure that seeks to prop up a declining industry”.
As many local and national newspapers decline in readership and revenue, governments have become increasingly protectionist in their attempts to “rebalance” the sector, by cracking down on online platforms.
The link tax has little merit, even if rebalancing is the goal. News outlets which require payment for readership already have logins and paywalls to protect their content from free access.
[…]
Article 13 will also be distortive to the market, as it makes online platforms increasingly liable for copyright infringement.
As Hewson’s briefing notes, major online platforms already have routine screening processes for content that violates copyright law or their own rules. But the new regulations “remove the protection for platforms previously available if they removed violating content promptly on receiving notice of it, and contravene fundamental rights such as free expression and freedom from monitoring”.
The Directive claims that safeguards – including pastiche, parody, and quotations – will be protected, and that meme content has been excluded.
But the algorithms which these platforms will have to implement to adhere to Article 13 are going to struggle to see the difference between infringement and fair use when comparing uploads to content that is registered as copyrighted.
QotD: Organic spices are a racket
There’s a whole other piece to be written about organic spices, but the short version is that demanding organic spices is never going to be good for the farmers growing them. The U.S. standards for organic products amounts to ridiculously expensive and oftentimes unnecessary practices for small farmers who just don’t have the resources to do it. There are plenty of ways to arrive at ethical treatment of animals and land that are not part of our complicated organic laws. And that’s not to mention the people who demand organic products but will also freak out at the sight of a bug or won’t buy something that’s even a little bit misshapen or with a tiny brown spot on it. You can have pesticides or you can have pests.
Caitlin PenzeyMoog, “Salt grinders are bullshit, and other lessons from growing up in the spice trade”, The A.V. Club, 2017-04-06.
March 22, 2019
Understanding the Great Depression
Marginal Revolution University
Published on 23 May 2017In this video, we examine the causes behind the Great Depression with the help of the aggregate demand-aggregate supply model.
In 1929, the stock market crashed and an air of pessimism swept across America — making bank depositors nervous. What would you do if you thought your money might not be safe with the bank? You’d probably want it back in your own hands. What happened next? A run on the banks.
Along with the Stock Market Crash of 1929, it’s one of the iconic moments of the early days of Great Depression. However, the Great Depression was an incredibly complex downturn in which the economy experienced a series of aggregate demand shocks. By the end of this video, you’ll walk away with a better understanding of the many factors behind the Great Depression and how to apply the AD-AS model to a real-world scenario.









