The article challenges the common belief that government intervention helped end the Great Depression, arguing that this perspective is largely inaccurate.
1. Common Narrative: Many believe that the Great Depression started due to the inaction of Presidents Coolidge and Hoover, and that government intervention under Roosevelt's New Deal was crucial to recovery.
2. Critique of Hoover’s Policies: The author contends that Hoover's response to the Depression, which involved expanding government programs and increasing taxes, failed to alleviate economic suffering. Instead, these actions left many Americans struggling, with unemployment skyrocketing to nearly 25%.
3. Economic Recovery Precedent: Reference is made to earlier presidents like Van Buren and Grant, whose hands-off approaches allowed market forces to eventually heal the economy. The article suggests that if Coolidge had been in office during the initial crash, he would have similarly done nothing, which historically worked.
4. Roosevelt’s Continuation of Hoover’s Policies: Despite Hoover's defeat in 1932, Roosevelt's New Deal policies largely resembled Hoover’s earlier strategies. Influential advisors noted that many New Deal programs were adaptations of Hoover's initiatives.
5. Hoover's Changing Perspective: Over time, Hoover became critical of the extensive federal government powers he had previously endorsed, recognizing the dangers of bureaucracy and its impact on the freedoms of individuals.
The article argues that government intervention did not save the economy during the Great Depression; rather, it worsened the economic situation. It asserts that the belief in the necessity of government action to resolve such crises is misguided, with a historical precedent supporting a less interventionist approach.
https://www.frontpagemag.com/fpm-plus/did-big-government-pull-us-out-of-the-great-depression/
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