The myth of the myth of the great depression. Now that doesn't sound right. (Double negative maybe)
Getting on with the story, I was looking at a video on the Huffington post the other day when I saw an overlay of a you tube video by Historian Stephen Davies. Me having a cat like nature decided to open this video. Now Mr Davis or is he called Doctor Davis laid out what he called the three myths of the great depression. The first one stated that President Hoover was not a Laissez fairer president. Now this is true,but he wasn't very aggressive with government intervention, my take was he only advanced spending on projects that were all ready in the pipeline . Yes it is true that he borrowed, what isn't true is that his borrowing made the depression worse. The same is true for Roosevelt.
The second myth that Mr Davies states that President Roosevelt new deal policies didn't save capitalism.
Now one can look at this statement and on the surface it would appear to be true. That's not taking into account that we were on the verge of revolution. We had demigods to the left of us. We had demigods to the right.
The third myth mentioned on this video was that world war two ended the depression The argument is that war by definition destroys capitol. ( I'm not quite sure that's true, especially when there wasn't any fighting in the United States.) The claim being that the depression really ended in 47,48.
What isn't mentioned in those years there wasn't any scarcity of money and or a pent up demand for consumer goods due to the war.
The jest of the video was that if the government leaves the economy alone things will straighten out by themselves.
Unfortunately what was was mentioned on the video was England which had raised taxes and devalued its currency by getting off the gold standard. He northern part of England had stayed depressed.
Other countries that came out of the depression before the god old US of A went on a war footing before us.
The question is can a country come out of a recession without government intervention?
Does government intervention hurt or help getting out of a depression?
The answers are obviouse to me.
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