Why the “Great” Depression?
If government intervention worked, then why did the 1929 depression become Great, when none had before? It ought to make you angry. The injustice is so clear. The politicians caused the problem, blamed it on the free market, and then benefited from the disaster they had created by grabbing vast amounts of power and money. And now it’s happening again. History, sadly, is rhyming. We’re being told that the economic downturn resulting from the housing bubble is a market failure, and that massive government intervention is needed in all directions. But the truth is this: • Government housing policies and easy credit from the Federal Reserve caused the housing bubble. • Companies and individuals who made bad decisions based on these policies should pay the full price for their mistakes. • None of them should be rescued. • The politicians should not intervene. In short, the politicians should stop pursuing policies that rhyme with those pursued during the Great Depression. In addition, the a
