Friday, December 14, 2012

The Cafe On Why The Depresssion Was "Great"

"Amity Shlaes argues persuasively in her 2007 book, The Forgotten Man, that “Roosevelt’s commitment to experimentation itself created fear”* – fear that, as economic historian Robert Higgs documents, greatly prolonged the depression.**
"A chief reason for this sad result is that experimentation in the style of the New Deal actually chokes off the real deal.  Substituting serially a handful of grandiose, one-size-fits-all schemes dreamed up by politicians – where no such scheme competes simultaneously with any other – forcibly eradicates hundreds, even thousands, of individual private experiments undertaken simultaneously, each launched and guided by someone with his or her own money at stake and prohibited from forcing unwilling others to play along with any particular experiment.  Experimentation, therefore, of the sort that FDR championed was really neither so “bold” (as it was done with other people’s money and lives) nor “persistent” (as, at any time, it displaced countless individual and simultaneous experiments with one gargantuan ‘experiment.’)"

Cafe Hayek — where orders emerge

"2nd order effects":  Would the emperor have attacked the US if Hoover and FDR's economic malfeasance had not left the US looking weak?  Doubt it.

No comments:

Post a Comment