The Foundational Economic Myth of Our Era: Government Cured the Great Depression.
May 6, 2011
Economist Thomas Sowell recently challenged the Great Myth of FDR and the Great Depression.
No economic downturn in all those years ever lasted as long as the Great Depression of the 1930s, when both the Federal Reserve and the administrations of Hoover and of FDR intervened.The myth that has come down to us says that the government had to intervene when there was mass unemployment in the 1930s. But the hard data show that there was no mass unemployment until after the federal government intervened. Yet, once having intervened, it was politically impossible to stop and let the economy recover on its own. That was the fundamental problem then — and now.