Rothbard's Eye Opener

I sit by and watch the river flow
I sit by and watch the traffic go
Imagine something of your very own
Something you can have and hold
I'd build a road in gold
--Blondie

Anyone who studies the 1920s and 1930s with open eyes will reach similar conclusions to those reached here. The Great Depression was not caused by 'capitalism' but by a credit bubble--a bubble that was induced by a hyperactive State. And by not letting markets clear, that same hyperactive State prolonged the Depression.

Parallels to today are almost stunning--right down to presidential succession. In both cases, we have an interventionary, borrow-and-spend Republican president followed by a Democrat whose liberal policies redefine what intervention, spending, and borrowing mean.

Rothbard's (1963) work was one of the first to challenge conventional wisdom on the causes of the Great Depression. Anyone seeking wisdom about this period is well advised to crack it open.

Personally, am indebted to MR for opening my eyes here.

References

Rothbard, M.N. 1963. America's Great Depression. Princeton: D Van Nostrand & Co.