The Herbert Hoover Playbook (Lew Rockwell)

Lew Rockwell writes:

The feds continue to follow the economic path that turned the 1929 bust into the sixteen-year Great Depression: artificially keeping prices high, and bailing out failing businesses, when the excesses of the boom must be cleaned out before we can have prosperity. That is, prices must be free to fall to reflect reality, and there must be no more wealth destruction through subsidizing the losers. Yet it's hardly news, as they debate welfare for Goldman Sachs, that congressmen have voted to bailout the losers called GM, Ford, and Chrysler. It's just more confirmation, as if we needed it, and officials are willing to engage in hyperinflation rather than allow the market to take its moral and rational course. To all of you who do not see the state as essentially a criminal enterprise, a "gang of thieves writ large," as Murray Rothbard put it: time to take another look.