great myths of the great strongdepressionstrong - James Madison Institute.pdfVIP

the jourN al of the james M adisoO ni stitute s s e r g n o C f o y r a r b i L great mythsgreat myths of the great depression by lawrence reed any volumes have been writ- 1.6 million in 1929 to 12.8 million in Mten about the Great Depres- 1933. One of every four workers was sion and its impact on the lives of out of a job at the Depression’s nadir, millions of Americans. Historians, and ugly rumors of revolt simmered economists, and politicians have for the fi rst time since the Civil War. all combed the wreckage searching Old myths never die; they just keep for the “black box” that will reveal showing up in college economics and the cause of this legendary tragedy. political science textbooks. Students Sadly, all too many of them decide today are frequently taught that to abandon their search, fi nding it unfettered free enterprise collapsed easier perhaps to circulate a host of of its own weight in 1929, paving false and harmful conclusions about the way for a decade-long economic the events of seven decades ago. depression full of hardship and How bad was the Great Depres- misery. President Herbert Hoover is sion? Over the four years from 1929 presented as an advocate of