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Thursday, September 16, 2010

Markets, Statism and you.


John said...


You rightly emphasize the long-run consequences of statism. However, you also could point out the short-run consequences. That experiment also has been performed, and you are one of the experts in it: the Great Depression. The recession of 1929 turned into a Depression the likes of which the country had never before seen. What was different? Only one thing: the way the federal government acted. Starting with Hoover and continuing with Roosevelt, the federal government decided that the right thing to do was intervene everywhere, make a mess of markets, and demonize business and businessmen. The unfortunate thing is that the Bush and Obama administrations decided to reprise Hoover and Roosevelt, respectively, and are doing it all over again.

The one bright spot is that this time the Federal Reserve is run by someone who understands monetary economics, has studied the Great Depression, and almost certainly will not make the same blunders that the Fed made in the 1930s. Maybe that will be enough to keep us out of a depression this time.

Randall Parker said...

Thank you John for such an insightful comment.