Uh Oh, The Truth Is Coming Out

From the Amazon review of this book:

* The Crash of `29 was caused not by capitalism, but by the boom brought on by the newly created Federal Reserve's easy money policy (sound familiar?)


* Hoover made the Depression "Great" precisely by abandoning the laissez-faire approach that previous presidents had followed and that kept depressions short


* The bank runs of the 1930s were caused by government intervention in the banking system


* Government efforts to prop up wages and prices led to a full decade of double-digit unemployment


* FDR's arbitrary policies toward businessmen resulted in net investment of less than zero for much of the Depression


Other points made in the review:

  • World War II did not get us out of the economic malaise. It was not until Truman's policies encouraging small business investment after the war that growth started to come back.
  • The childish historical cartoon of Hoover as a slave to all things laissez-faire is simply wrong. Hoover intervened in the economy more than any other president to his day, implementing policies that turned a market correction into a recession. Roosevelt did the rest.
  • The market crash of 1929 was not very different from the crash of 1920. Never heard of that? It's probably because the government didn't do anything, the correction took its course, and the whole thing was over in a year or so.
So now, is it too much to compare the present situation to that of 1987? Probably, but just to make the point, can we agree that Reagan handled that market correction pretty well? And can we say that taking on World War II levels of debt to address this recession is simply ridiculous?

No doubt.

2 comments:

JP

2:37 PM

Jake for Fed Chairman - 2009...

Yarch,

JP

Jake

3:40 PM

Anything would be an improvement over the present dumb ass.