Government Intervention & Economic Crisis
How to Avoid Another Depression
by Mark Thornton
“Great Depression” is a strong term, but what exactly does it mean? Depressions are a normal part of a business cycle that are now often called recessions, downturns, or corrections. They occur in any economy where the financial markets are based on fractional-reserve banking.
Depressions only become “great” when normal to severe depressions are used as excuses for massive increases in government intervention. Murray Rothbard’s America’s Great Depression clearly demonstrates this phenomenon. The three great depressions in the history of the United States are the Progressive Era (1907–1922), the Great Depression (1929–1945), and the Great Stagflation (1970–1982).
The year 2008 marks the beginning of the next recession, correction, or depression. All the statistical indicators are pointing in that direction. All market indicators point in that direction as well. Ask any noneconomist and you will get that same answer. We only have to wait for the folks at the National Bureau of Economic Research to officially confirm what we already know. [Full Article]