On “The Bailout”, Part 14: Lessons from Great Depression including Amity’s Shales The Forgotten Man

While the elites-politicians bumrushing Americans to socialize more of the financial system using fear of a great financial catastrophe to push aside dissent and common sense, it is a good idea to revisit the lessons of the Great Depression with a clear head (not a leftists romantic memory).

Amity Shales has done a great service to Americans with her book The Forgotten Man. Especially important is the point that at the economic recovery hampered by unpredictable actions by USGOV that signaled uncertainty to investors freezing them somewhat place. Anyways, read the book (and her columns), its worth your time.

Also note from this link:

“Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump,” said Ohanian, vice chair of UCLA’s Department of Economics. “We found that a relapse isn’t likely unless lawmakers gum up a recovery with ill-conceived stimulus policies.”

In an article in the August issue of the Journal of Political Economy, Ohanian and Cole blame specific anti-competition and pro-labor measures that Roosevelt promoted and signed into law June 16, 1933.

“President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services,” said Cole, also a UCLA professor of economics. “So he came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies.”

While Roosevelt was the greatest wartime President the USA ever had, the legacy leftist romantic vision of New Deal Socialism still hurts the USA today.


Purpleslog says: “No we don’t. Unless you mean as a model for a War
President. I don’t think that is the FDR the Left is calling for.”
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One Response

  1. *adds another book to the ever growing amazon wishlist.*

    Reading a few things from FDR, he isn’t such an economic godsend as everyone thinks. Just look for the blue eagle 😉

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