Actually, you should read the “Forgotten Man”. The myth is that the gov’t did nothing, exacerbating the fallout from the stock market.
In reality, the government was raising taxes due to lowered revenues from the stock market losses, etc. The uncertainty that gov’t intervention caused made the Great Depression last all 8 years of FDR’s first two terms. Investors don’t know what to do if they think that owning gold will be illegal or legal, if taxes will be raised, etc.
Think about what would happen if Hillary pushes for raising long term capital gains taxes to your regular income rate by the end of 2009….the market will take a huge nosedive by the end of that year, as everyone rushes take advantage of the 15% rate that is currently in place.
This is the kind of stuff that occurred in the 30s. The left in the this country revised history saying that government is the nice benevolent force that can come to the rescue. This is erroneous.
