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> Problem is, that was exactly what drove policy in the United States between 1929 and 1933. I don't understand how people think that the policy during 1929-19
by burntsushi 13y ago
> Problem is, that was exactly what drove policy in the United States between 1929 and 1933.
I don't understand how people think that the policy during 1929-1933 was "do nothing" when the following things occurred during that time period: Smoot-Hawley Tariff Act, Glass-Steagall Act, the Federal Home Loan Bank Act, the Emergency Relief and Construction Act, the Reconstruction Finance Corporation, the Hoover Dam(!), and more.
Despite Hoover stating that he wanted less government intervention, that isn't actually what happened. Basically, the notion that "we did nothing" during 1929-1933 (as you've suggested) is a giant misconception that really needs to die.
You can read more about it here: http://en.wikipedia.org/wiki/Herbert_Hoover#Great_Depression http://en.wikipedia.org/wiki/Herbert_Hoover#Great_Depression
N.B. I don't claim that these policies were effective. Just that "nothing" is far from the truth.
- jordanb 13y agoThe Glass-Steagall Act, at least, what people mean when they say "Glass-Steagall" was passed in 1933 and signed by FDR.[0] You are correct, of course that Hoover didn't "fiddle while Rome burned" but fiscal policy was largely non-interventionist and monetary policy tight until the Emergency Banking Act of 1933[1] which was the "severe government intervention" I mentioned in the OP. [0] http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Legislation http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Legislat... [1] http://en.wikipedia.org/wiki/Emergency_Banking_Act http://en.wikipedia.org/wiki/Emergency_Banking_Act