The Truth About the Great Depression

"... regarding the Great Depression: You're right, we did it."-- what Federal Reserve Board Governor (now Chairman) Ben Bernanke finally said to Nobel Laureate Dr. Milton Friedman, at Milton's 90th birthday celebration, meaning that yes, indeed, the Great Depression WAS caused by, AND prolonged by, THE GOVERNMENT,-as Friedman had always said.[Financial Review, 12-9-2002] 

See: "Obama threatens to follow in FDR's economic missteps"-HERE
"Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years..."HERE, "The New Deal Hurt the Economy" HERE
and the Burton Folsom speech on the Great Depression-HERE-

Also see:The Forgotten Man: A New History of the Great Depression-HERE,-
"The New Deal Myth" HERE, Rethinking the Great DepressionHERE,
Forgotten Lessons-HERE, The P.C. Guide to the Great Depression HERE
Essays on the Great DepressionHERE, America's Great Depression HERE,-
the audio lecture,-The Cause and Consequence of the Great Depression (CD) HERE,
Did capitalism cause the Great Depression? HERE, Putting it in Perspective HERE
The Roosevelt Myth-HERE,  and 
FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression--by Jim Powell  HERE.

Nick Gillespie interviews Amity Shlaes


"Scratch the surface of an endemic problem -- famine, illness, poverty --  and you invariably find a politician at the source." 
--  Simon Carr, in his review of The Mystery of Capital  by Hernando de Soto

"There is no need here to attempt to explain FDR's economic reasoning, if such an explanation is even possible. Speaking of the President's acquaintance with economics, biographer John T. Flynn noted that 'it is entirely possible that no one knew less about that subject than Roosevelt.' [from The Roosevelt Myth]  What is important is that these economic fallacies would have terrible consequences. The President's faulty grasp of what had caused the Depression led him to introduce a system whose operation was quite similar to the old guild structure, with the explicit intention of reducing competition." -- Thomas E. Woods, Jr.,-HERE
[By contrast, RWR, the only president to ever hold a degree in economics, came into office with a wildly inflationary recession on his hands in 1981 and, by enacting policies the polar opposite of FDR's, sparked the longest boom in American history, despite having to carry with it the continuation of the poisonous Community Re-investment Act as an ongoing legacy from his predecessor, a ticking time-bomb that would eventually explode as the financial crisis of 2008.]
     "During the Great Depression, economics had been taken by storm by the British savant John Maynard Keynes.  He diagnosed the Depression as a failure of "aggregate demand," and prescribed massive government spending to stimulate it back to life.  This became the dominant paradigm that guided the New Deal and captured the economics profession for decades after.  For economics, this was a plunge into what amounts to a dark age.  It was as though crisis had erased a century and a half of the economics of reason guided by the enlightened thinking of great minds like Adam Smith.  [Dr. Milton] Friedman's greatest contribution would be a monumental empirical investigation that would prove -- not just argue, but prove -- that the Keynesian diagnosis of, and prescription for, the Depression was in error." 
-- Donald Luskin and Andrew Greta in "The Economist of Liberty": Chapter 9 of I Am John Galt
    "Bad and discredited ideas, it seems, never die.  Neither do they fade away.  Instead, they keep turning up, like bad pennies or Godzilla in the old Japanese  movies." -- Murray N. Rothbard
   "One of the most important reasons for studying history is that virtually every stupid idea that is in vogue today has been tried before and proved disastrous before, time and again." -- Dr. Thomas Sowell
   "There is no error so monstrous that it fails to find defenders among the ablest men." -- Prof. John E. E. D. Acton
   "The study of history is a powerful antidote to contemporary arrogance. It is humbling to discover how many of our glib assumptions, which seem to us noble and plausible, have been tested before, not once but many times and in innumerable guises; and discovered to be, at great human cost, wholly false." -- Celebrated Historian Paul Johnson
   "Those who cannot remember the past are condemned to repeat it." ~ George Santayana, The Life of Reason, 1906
   "When Western countries in the past were as poor as Third World countries are today, these Western countries nevertheless had one big advantage: There was no large and influential class of the intelligentsia to impede their progress with unsubstantiated theories and counterproductive propaganda." -- Dr. Thomas Sowell

= these particular quotes came from THIS page on the "gap" between rich and poor

Thomas DiLorenzo fills in the gaps in the history


"We know that anything government does private enterprise can do for half the cost." -- Nobel Prize-Winning Economist Dr. Milton Friedman to Charlie Rose 12-26-2005 

"Whenever the government runs things it always costs twice as much as should be." -- Gerald Pearse

"Government purchases of military hardware, highways, energy projects, space equipment, and other items often cost 50% or 100%, or more (see here and here), above what politicians originally promise." -- Chris Edwards

"When the government pays, health care's lack of affordability becomes a self-fulfilling prophecy.  In health care, as in other things, government is the high-cost producer." -- Arnold Kling

"The idea of putting government in charge of something to 'save money' is INSANE." -- Ben Stein

"Every time government attempts to handle our affairs, it costs more and the results are worse than if we had handled them ourselves." -- Benjamin Constant

"Government does not do ANYthing as well as the private sector does, and that includes educating your children." -- Neal Boortz

"Whenever the government spends a million dollars on something that could have been done in the private sector, it ALWAYS sucks at least TWO million dollars out of the real economy to do it.  THAT'S WHY the entire Keynesian 'government spending stimulates economic activity' theory is failing big time and proving disastrous again, right before our eyes -- because it's pure, unadulterated bullspit." -- Rick Gaber

“One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary.” -- Ayn Rand

"Every time a politician says "a job was created!!!" by government spending, you know darn well at least TWO jobs (if not a lot more) were NOT created in the private sector as a result.  Look up "THE BROKEN WINDOW FALLACY." -- Bert Rand

See How Politicians Rely on The Broken Window Fallacy: Where you don't see the victims of their policies HERE.

More fallacies stupid politicians rely on

Amazing contrast: THE FORGOTTEN DEPRESSION OF 1920    

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