“Why don’t we try sanity for a change”: Historian and economist Thomas Woods explains why the depression of 1920 is so unknown – government did nothing (other than cut taxes and expenditures) and the markets self-corrected by 1921. In this YouTube video (running time just under 50 minutes) from the Mises Institute, Thomas explains why the Keynesian-influenced bailout and stimulus policies currently promoted make things worse rather than better.
Contrary to popular belief, both Hoover and FDR responded to the 1929 crash by being proactive and introducing stimulus and intervention into the economy. The result that was a depression that lasted well over a decade. Wouldn’t it be better to imitate the policies in place for a depression that ended in months instead?
Take the time to listen to this presentation; it’s well worth it.