The Return of the Great Depression [Hardcover]

Vox Day (Author)

Book Description

Publication Date: October 29, 2009

In this sophisticated yet readable book, Vox Day - one of the few economics writers to predict the current worldwide financial crisis - explains why it is likely to continue.

Day shows that the policies being pursued in Europe, Asia, and the United States are very similar to Japan's failed policies of the past twenty years and, therefore, doomed to similar results. According to Day, the economic theories behind those policies are flawed and account for why most economists were unable to anticipate the recession or see that their expectations of an imminent recovery are incorrect. Day applies a different theory, the one he used to predict the current crisis, to show that the world is in the early stages of a massive economic contraction. Then he turns to the six scenarios presently envisioned by the world's leading economists and assesses which is most likely to unfold. As the title suggests, Day concludes that the most probable scenario is a Great Depression 2.0 that will be larger in scale and scope than that of the 1930s.

Editorial Reviews

About the Author

Vox Day graduated in 1990 from Bucknell University with degrees in Economics and Asian Studies. He is a member of the Science Fiction and Fantasy Writers Association, the International Game Developers Association, and Mensa, and helped found the techno band Psykosonik. In addition to his weekly columns, he transmits contagious and controversial memes daily from the Vox Popoli blog.

Product Details

• Hardcover: 280 pages
• Publisher: WND Books; 1 edition (October 29, 2009)
• Language: English
• ISBN-10: 1935071181
• ISBN-13: 978-1935071181
• Product Dimensions: 9.2 x 6.6 x 0.9 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (44 customer reviews)
• Amazon Best Sellers Rank: #488,440 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

55 of 57 people found the following review helpful:

5.0 out of 5 stars Excellent, and easy read for both novices and experts on economics, December 6, 2009

By 

VoodooJock "Cave Tonitrum!" (The United States Air Force) - See all my reviews

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This review is from: The Return of the Great Depression (Hardcover)

Admittedly, I didn't know what to expect from this book. I am a frequent reader of Vox Day's blog, and do find his views on a variety of topics both insightful and thought-provoking. However, having read a number of "Doom and Gloom" predictor books in the past, only to have the author's assertions not only fail to come true, but their methodology proven eminently suspect.

The first thing that stands out about this book is the delivery. It's fluid, conversational, and devoid of economic jargon that permeates most books on the subject. The book also exhibits none of the haughty arrogance displayed in books more suited for overworked graduate students of economics than public consumption. The graphs illustrate and illuminate rather than confound and confuse. There are ample anecdotes used to illustrate Day's points. Having read von Mises' "Theory of Money and Credit", "The Anti-Capitalist Mentality", "Socialism", and Rothbard's "America's Great Depression", "Return of the Great Depression" is about as easy to read and understand as Hazlitt's "Economics in One Lesson".

As far as the book's content goes, it's thoroughly researched and uses cites numerous sources to illustrate his points. Though Day is a student of the Austrian School of economics, the manner in which he methodically examines the historical events and the personalities involved displays no trace of any personal bias. That isn't to say that the book itself is devoid of his own viewpoint, rather, it is to say that he makes it tacitly clear where the line between the "science" of his deconstruction of history ends and where his personal opinions begin. His expertise on economic metrics and their application is exemplary. In my opinion, the portion of the book that discusses the utter uselessness of economic metrics published by the government alone should be photocopied and given out to any student enrolled in an undergraduate economics course.

In conclusion, whether you're an ardent student of economics, or merely the kind of person who wants to learn a little more about how we wound up in our current economic situation and how to decipher what the media pundits are really saying about unemployment, CPI's, and GDP, you will find this book quite enlightening.

57 of 63 people found the following review helpful:

5.0 out of 5 stars An Absolute must read, October 26, 2009

By 

Ari K. - See all my reviews

This review is from: The Return of the Great Depression (Hardcover)

Cross-posted from [...]

Once in a while, a book comes along that shakes so many of your core beliefs that you are left questioning either the integrity of what you have read or your own knowledge. In this particular case, I had the privilege of a sneak peek at The Return of the Great Depression by Vox Day and with most certainly can state, it is the latter. RGD as it shall be referred to from now on, as can be inferred from its title makes a very compelling case as to the state of our economy and where this nation is potentially headed. However do not be mislead by its name, for this is much more than a prophecy, it is principally and foremost an economic text diligently spending the majority of its efforts in explaining why we are standing on the edge of a precipice.


A non trivial task to say the least as the American public has been on the receiving end of political pundits, commentators, journalists, politicians, bloggers and friends all who wish to explain in their own unique way the reasons behind our financial turmoil. Inevitably the information regarding such pertinent details as to the state of our economy gets lost in the constant scuffle of bipartisanship, ideology and mudslinging. What is unique about RGD's approach and the difficulty of the task undertaken is to not only provide an explanation rooted in strong economic foundation, but to also tackle and examine the prevalent economic explanations and their egregious falsities. One must expend a great deal of energy to elegantly deliver one's point of view, but must expend even greater energy to successfully understand opposing views and intelligently be able to ascertain their effectiveness or lack thereof. Mr. Day skewers the conventional wisdom with such bravado that all questions of its merit quickly evaporate.

RGD takes you on a gripping journey with such ease and suspense you will quickly forget you are reading a complicated economic textbook and will need to reminded by loved ones that sleep is as useful as understanding the economy. We begin in the hay day of Japan's economic boom and ultimate bust, the history of which is unknown to many, but crucial to understand for all. We then zoom to the culmination of the housing collapse laying the groundwork for what unfolds to be a Pandora's Box of financial witchcraft. RGD focuses on a most crucial and underlying theme of the book, illustrating the housing boom while profound, is but the tip of the proverbial iceberg. Through language designed for the layman supported by numerous charts and tables, RGD hones in at the very root causes of the financial terror gripping our nation. Virtually no stone is left unturned as the fundamental flaws of our entire economy are exposed in a glaring and sometimes brutal fashion. No one is spared as Mr. Day tackles head on the central bank, economic theories, philosophies, flawed fiscal policies, media, economists and economic data finally arriving at the most logical and obvious conclusion. All this is done with awe inspiring brevity and a personal touch so often missing in great economic works of our time. It is amazing to find within one page an explanation of why the government's unemployment numbers are chronically faulty yet also learn of Mr. Day's raids within World of Warcraft, although his penchant for the Alliance is regrettable - long live the Horde!

RGD's rollercoaster gently winds down and the most likely scenarios are presented. At this point the reader can choose from a buffet of options ranging from a widely believed economic recovery to a possibility of another Depression. Rest assured, like a good Hollywood movie the ending leaves the reader with hope for the future and the author's well crafted remedies for even the worst of outcomes.

Regrettably, the book suffers from one slight handicap although this is no fault of the author given the task at hand. While great attempts were taken to wrap the difficult material into a pill the layman could swallow, such a wide spectrum of economic, historical and political knowledge is covered the pill's size becomes unmanageable. As with all important discoveries, the magnitude of this revelation largely depends on your existing knowledge and the entrenchment of your economic beliefs. For me, familiar with at least basic economic concepts, libertarian viewpoints and the history behind the Great Depression the completion of the book was bittersweet. Sweetness in appreciating the underlying theme and enjoying a profoundly expanded horizon, bitterness in the recognition that as many questions were raised as answered. I cannot understate the importance of this profound text nor ignore the paradox facing America; a majority of the people must read this book, but only a minority will understand it. Let not this warning dissuade you for any amount of information extracted out of this historical text will be both enlightening and mind changing hopefully for the collective good of our ailing nation.

Full review: [...]

49 of 54 people found the following review helpful:

5.0 out of 5 stars Painful, yet highly informative book., November 10, 2009

By 

DocintheAtl (Atlanta, GA) - See all my reviews

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This review is from: The Return of the Great Depression (Hardcover)

Very good read that probes the reasons behind our economic mess. The book starts off in Japan during the boom years, which develops a baseline for the remainer of the book insofar as the futility of government to correct the subsequent bust.
The book does a good job deconstructing various macro-economic theories before addressing the one theory that fits well with most of the available evidence. Vox describes the limits inherent to GDP, CPI, and unemployment figures that are at the center of mainstream economic thought. Vox subscribes to the Austrian School of economics currently as that school best explains historically our economic plight and what we can expect in the future.
The book postulates that our past and current crisis is a result of cheap money via easy credit that lead to false prosperity and mal-investments. This in-turn will result in needed contraction. I will use my own simple anology to expand. Imagine that I make $1 million a year, but have a super credit card that affords me a limit of $5 million a year, which I max out each year. Instead of me living within my means, I decide to build a factory (with my extra money) to build bicycles for all the kids in my neighborhood. My factory soon suffers losses secondary to a glut of bicycles on the market. Naturally, my factory should go out of business because it was a mal-investment. Currently most of what I have is built off credit (debt), and I am much poorer than what you can measure by my assets (thus the folly of standard measures of economic health). To correct this problem, I need to liquidate what I can, payoff what debt I can and start living within my means; although this will be painful. The sooner I can correct this problem, the sooner I can return to fiscal health.
However, our mainstream economist recommendations call for me to increase my credit limit significantly to avoid the inevitable. Their recommendations will prolong and worsen my agony; thus the name of the book: The Return of the Great Depression.
My analogy is limited in many ways (especially in scope and other factors involved that are elaborated further), but you get the picture. The book is much more detailed, and provides a wealth of data/charts.
Towards the end of the book, the author provides possible scenarios, as well as solutions (albeit ones that will not likely occur).