I disagree with you. I don’t think that the Great Depression was for the social good, any more than the last recession. You understand, I hope, that unregulated capitalism will result in horrible social consequences for rich and poor. The countries which have the highest standard of living, by every measure which is generally used, are the ones in which the governments play the most active role in the welfare of the people. The great irony is that even the rich people in those countries are better off by every measure which counts. Basically, the flatter the income distribution, then the better of everyone is, whether you measure infant mortality, suicide rates, child welfare, social mobility, level of education achieved, life expectancy and morbidity rates, and so on.
I don’t believe I alluded that the Great Depression was for the social good…???
Capitalism has created the highest standard of living ever known on earth. The evidence is incontrovertible. The contrast between West and East Berlin was a great example. The difference between North and South Korea today is remarkable.
What countries are you talking about?
If a detailed, factual study were made of all those instances in the history of American industry which have been used by the statists as an indictment of Capitalism and as an argument in favor of a government-controlled economy, it would be found that the actions blamed on Capitalism were caused, necessitated, and made possible only by government intervention in business. The evils, popularly ascribed to Capitalism, are not the result of an unregulated industry, but of government power over industry.
Governments that play the most active role in the
welfare of the people are getting money from some source. How else would they “spread the wealth around”.
But what I’m curious about, is on what basis do you make your claims? There is no evidence which I have seen that FDR prolonged the Great Depression? In fact, even Reagan, who opposed government job creation, and deficit spending to stimulate the economy, found that he had to resort to that exactly in order to end the recession which he inherited. He increased military spending by 35% and incurred the largest deficits per capita since WW2, completely contrary to his stated beliefs, but necessary to achieve the goal of economic recovery.
The main lesson we have learned from the New Deal is that wholesale government intervention can – and does – deliver the most unintended of consequences. This was true in the 1930s, when artificially high wages and prices kept us depressed for more than a decade, it was true in the 1970s when price controls were used to combat inflation but just produced shortages. It is true today, when poorly designed regulation produced a banking system that took on too much risk.
newsroom.ucla.edu/releases/FDR-s-Policies-Prolonged-Depression-5409
online.wsj.com/articles/SB123353276749137485
object.cato.org/sites/cato.org/files/serials/files/policy-report/2003/7/powell.pdf
There is a business professor at Wharton who teaches MBA students. With every new class, she has them play a game of Monopoly. 1/2 of the students are required to sit out the first ten minutes of the game. In her many years of doing this no student who has sat out the beginning of the game has ever failed to go bankrupt. The point is that severe inequalities, which are never fixed, accumulate over time in the libertarian model of government which you suggest to be the only legitimate form.
What a great lesson…change the rules and go bankrupt. Obviously this professor (?) has never been in business.
Let’s take that idea to Las Vegas. Change the rules at the tables and watch the casinos go bankrupt.
Wharton…humph!
Just where do you think a government gets its legitimacy? I’m also curious about that. My opinion is that this comes from the majority of the governed, and specifically not from minority business interests.
You are correct.
The source of the government’s authority is
“the consent of the governed.” This means that the government is not the ruler, but the servant or agent of the citizens; it means that the government, as such, has no rights except the rights delegated to it by the citizens for a specific purpose.
A society needs an institution charged with the task of protecting individual and property rights under an objective code of rules.
This is the task of a government—its only moral justification and the only reason why we need a government.