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I’ve commented many times about the misguided big-government policies of both Hoover and FDR,
so I can say with considerable admiration that this new video from the
Center for Freedom and Prosperity packs an amazing amount of solid info
into about five minutes.
Perhaps the most surprising revelation in the video, at least to
everyone other than economic historians, is that America suffered a
harsh depression after World War I, with GDP falling by a staggering 24
percent.
But we don’t read much about that downturn in the history books, in large part because it ended so quickly.
The key question, though, is why did that depression end quickly while the Great Depression dragged on for a decade?
One big reason for the different results is that markets were largely
left unmolested in the 1920s. This meant resources could be quickly
redeployed, minimizing the downturn.
But this doesn’t mean the crowd in Washington was completely passive.
They did do something to help the economy recover. As Ms. Fields
explains in the video, President Harding, unlike Presidents Hoover and
Roosevelt, slashed government spending.
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