10 sats \ 0 replies \ @kepford 23 Dec 2023 \ on: What Would it Take to Get a Depression econ
That's exactly what happened in the 1930's as Hoover then FDR threw the kitchen sink at regulations, mandating everything from above-market wages -- which force companies to lay off workers -- to political kommisars deciding what price you can sell -- indeed deciding if you'll have to sell your product for less than it cost.
This reminded me of a common myth I learned in college and have heard repeated ever since. Hoover was laissez-faire and FDR came in and fixed the economy. In reality Hoover was no where near laissez-faire. Over the years I've read in multiple books about Hoover's massive government projects and regulations on business. There is even a quote by him mentioning that one of his cabinet members was a "crazy laissez-faire" that recommended he remove regulation and reduce spending. He said, of course I didn't listen to him. Apparently some historians take this comment out of context and leave off the part where he said he didn't listen to that crazy idea!
Now, I will say. I wasn't there. I'm no expert but its a word to the wise. Question the "official" narratives. They are OFTEN false. Sometimes completely opposite of reality. At best many are biased or contain half truths.
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