Folks, stop using the “R” word. It is NOT a recession that we’re in, it is a DEPRESSION.
Recessions are caused by overproduction, by and large, and sometimes by an external shock (like an oil embargo). However, depressions are caused by the popping of large/gigantic credit bubbles. Guess which applies to our situation?
Government won’t get out of the way until it is forced to do so - because such involves the reduction of its power.
The Great Depression was the first time the government intervened in the economy. Hoover raised taxes and signed the Smoot-Hawley (Protectionist) Tariff Act. Roosevelt took it from there.
But, had government done what it had done in the past --nothing -- the event would've been known as "The Panic of 1929"...soon followed by a recovery.