|Too much of what
the politicians are currently doing rhymes too well with
what the politicians did during the Great Depression.
Then, as now, the politicians
blamed the economic downturn on the free market. They were
wrong then, and they are wrong now.
The government caused the
schools [and the media] don't teach this view. Instead, they
teach that . . .
The depression became Great
because President Hoover was an advocate of laissez-faire
economics who did nothing to intervene. In fact, Hoover was
the first president to ever make major interventions in the
Roosevelt aid Rexford Guy
Tugwell was to say years later . . .
“We didn’t admit it at
the time, but practically the whole New Deal was
extrapolated from programs that Hoover started.”
(Source: Paul Johnson, A History of the American People --
New York: HarperCollins Publishers, 1997, p. 741)
Even FDR himself agreed that
Hoover had intervened, he just disagreed with the
interventions. During the 1932 presidential campaign
Roosevelt repudiated Hoover's meddling, saying
. . ."The doctrine of regulation and legislation by
'masterminds' ... has been too glaringly apparent at
Washington during the [Republican administrations]."
And during the 1932
presidential campaign Roosevelt constantly criticized
Hoover for his huge deficits, promising instead . . .
* "immediate and
drastic reductions of all public expenditures"
* "abolishing useless commissions and offices,
consolidating bureaus and eliminating extravagances"
* "reductions in bureaucracy"
* Implied tax cuts
* And a "sound currency to be maintained at all
We aren't taught that
Roosevelt promised these things. Instead, we're taught that
FDR's heroic interventions saved the free market from
But what did his
interventions actually achieve?
* The depression became Great
under FDR's guidance.
* It lasted more than a decade.
* Prosperity never returned while he was
* The economy only recovered after Roosevelt was
dead and buried
Even FDR's own economic team
knew that his New Deal interventions had been a complete
failure. Here's what FDR's Treasury Secretary, Henry
to Congress in May, 1939 . . .
"We have tried
spending money. We are spending more than we have ever
spent before and it does not work. And I have just one
interest, and if I am wrong ... somebody else can have my
job. I want to see this country prosperous. I want to see
people get a job. I want to see people get enough to eat.
We have never made good on our promises ... I say
after eight years of this Administration we have just as
much unemployment as when we started ... And an enormous
debt to boot!"
It's significant that Hoover
and Roosevelt were the first to intervene in the economy.
Previous downturns had always been allowed to run their
course, lasting from a few months to a couple of years. But
the first one the politicians tried to stop is the one that
lasted more than a decade, and that really hit hard.
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 . . .
In short, the politicians
should stop pursuing policies that rhyme with those pursued
during the Great Depression.
In addition, the advocates of
Big Government should be asked . . .
- Why, precisely, was the
first economic downturn in which the government
intervened the only one that became so bad that it
earned the name of the Great
- And why is it, precisely,
that the major areas of American life where the
government has intervened to make things more
affordable -- such as health care, higher
education, and housing -- are exactly those
areas where costs have risen the most?
Government intervention does
not work. It does not make things more affordable, it makes
them more expensive. It does not prevent economic downturns,
it causes them, and deepens them.