I recently finished an essay by Lawrence W Reed, currently the president of FEE (foundation for economic education) of which I’ve posted briefly in the past. This short and concise essay described the ‘true’ causes and sustaining factors of the great depression. It dismantles the common thinking that the “New Deal” and FDR were solutions to the depression, and discusses the realities of the regulation, deceit, and politician-ing that went on during the depression. Solutions included FDR’s proposal of a 99.5% marginal tax on incomes over $100,000 (luckily it didn’t take), the destruction of goods and crops in an attempt to raise prices, and many more interesting debacles of political blundering that occurred, too many list here.
The essay pointed to the real culprit of the Depression and business cycles in general, bad monetary policy. This is revealed again with the current economic crisis and the Federal Reserve’s tinkering with interest rates (just as in the 20’s as a precursor to the crash). In fact, the circumstances leading up to the depression and even many of the political solutions imposed are astoundingly reminiscent of today! Do we ever learn from the past?!?! Hopefully the result will not be 12 years of drudgery in depression again… Check out the pamphlet in print here or as well available for free online here.
I give this essay a solid 2 thumbs up and recommend it to anyone. In fact, get a few copies and give it to anyone you know…
