Article by Robert Higgs, senior fellow in political economy for The Independent Institute, editor of The Independent Review, and author of "Depression, War, and Cold War."
Instead of stimulus, do nothing – seriously | csmonitor.comhttp://www.csmonitor.com/2009/0209/p09s01-coop.html
Excerpt:
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Our greatest need at present is for the government to go in the opposite direction, to do much less, rather than much more. As recently as the major recession of 1920-21, the government took a hands-off position, and the downturn, though sharp, quickly reversed itself into full recovery. In contrast, Hoover responded to the downturn of 1929 by raising tariffs, propping up wage rates, bailing out farmers, banks, and other businesses, and financing state relief efforts. Roosevelt moved even more vigorously in the same activist direction, and the outcome was a protracted period of depression (and wartime privation) from which complete recovery did not come until 1946.
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Good article.
Instead of stimulus, do nothing – seriously | csmonitor.comhttp://www.csmonitor.com/2009/0209/p09s01-coop.html
Excerpt:
~~~~~~~~~~~~~~~~~~~~~~
Our greatest need at present is for the government to go in the opposite direction, to do much less, rather than much more. As recently as the major recession of 1920-21, the government took a hands-off position, and the downturn, though sharp, quickly reversed itself into full recovery. In contrast, Hoover responded to the downturn of 1929 by raising tariffs, propping up wage rates, bailing out farmers, banks, and other businesses, and financing state relief efforts. Roosevelt moved even more vigorously in the same activist direction, and the outcome was a protracted period of depression (and wartime privation) from which complete recovery did not come until 1946.
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Good article.
