Originally Posted by douggmc
With all due respect ... are you in a bizarro fact world?
I've never heard of FDR's policies characterized as less government intervention in financial markets and monetary policies. You do know that under FDR in 1933 we abandoned the gold standard. I would call that about as significant of an intervention into monetary policy as one could possibly imagine by the gov.
It was the drastic deregulation and laissez-faire policies of the "roaring 20s" that most economists attribute to the bust of 29 leading the the Great Depression!
Im afraid there was some misunderstanding if that's what you thought my post said. I thought I was pretty clear that all the gov't interventions in fiscal and monetary policy (ie New Deal, et al) made the problem of free spending in the early to mid 20s worse
by not allowing bad decisions (aka malinvestment) to shake out of the system. WW2 did not end the Depression. The end of gov't intervention in the economy is what ended it.
Again, you can see clear parallels between that period and today's economy. The early to mid 20s would be parallel to the early to mid 2000's with loose monetary policy that led to speculative bubbles. 2008 would be akin to 1929. Now we have the same gov't and central bank intervention going on and it's making the problem worse by propping up the malinvestment instead of liquidating it and allowing the market to correct itself. The gov't and the Fed needs to get out of the way, not repeat the same bad policies that extended the GD.