Statist Policy and the Great Depression

A useful corrective to the liberal myth-making that surrounds the Great Depression

International Liberty

It’s difficult to promote good economic policy when some policy makers have a deeply flawed grasp of history.

This is why I’ve tried to educate people, for instance, that government intervention bears the blame for the 2008 financial crisis, not capitalism or deregulation.

Going back in time, I’ve also explained the truth about “sweatshops” and “robber barons.”

But one of the biggest challenges is correcting the mythology that capitalism caused the Great Depression and that government pulled the economy out of its tailspin.

To help correct the record, I’ve shared a superb video from the Center for Freedom and Prosperity that discusses the failed statist policies of both Hoover and Roosevelt.

Now, to augment that analysis, we have a video from Learn Liberty. Narrated by Professor Stephen Davies, it punctures several of the myths about government policy in the 1930s.

Professors Davies is right on the…

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3 Responses to Statist Policy and the Great Depression

  1. crosspatch says:

    This study from UCLA has shown that Roosevelt’s policies likely extended the Great Depression by 7 additional years.

    http://newsroom.ucla.edu/releases/FDR-s-Policies-Prolonged-Depression-5409

    • Yeah, I’ve cited that one myself a few times. It’s a quite persuasive study. The Harding/Coolidge approach (really, Treasury Secretary Mellon’s) to the depression of 1920 was much more effective, yet largely forgotten.

  2. crosspatch says:

    This points out one of the problems with politics. Roosevelt was running for elected office. It doesn’t matter if his policies actually made things worse or not, what mattered was that the people *believed* he was “trying to help” them. Leaving things alone would seem cold and callous. It’s the same thing today where simply giving poor people money makes them feel they are being “helped” but in most cases it just perpetuates their condition without actually helping them at all. It is a sort of a lotion that takes the sting out of being poor but doesn’t actually change the condition at all.

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