Posted on 06/17/2010 11:51:12 AM PDT by jazusamo
Is there some way we can do a body snatch? Thomas Sowell into the WH and the kenyan into a mud hut next to his brother where he can’t do any more damage.
What was the difference between these two stock market crashes? The 1929 stock market crash was followed by the most catastrophic depression in American history, with as many as one-fourth of all American workers being unemployed. The 1987 stock market crash was followed by two decades of economic growth with low unemployment.
But that was only one difference. The other big difference was that the Reagan administration did not intervene in the economy after the 1987 stock market crash-- despite many outcries in the media that the government should "do something."
As usual, Sowell blows my mind with some insight that he articulates in a powerful way.
This is the type of information we have to teach our children! We are dying as a nation for "lack of knowledge." And, yes, I mean that on several relevant scales.
My reply was that number was not that high and 6% had been considered "full employment" at different times in US history.
But she bought the MSM line about how catastrophic that number was. Well, haven't heard anything from her lately about how catastrophic the 50% higher 9.9% unemployment is under Bambi.
This article takes too long to state the obvious.
When government ‘does something’ it changes the rules.
It then takes time to re figure out how to play the game.
Running a business is like playing poker. You have to know the odds and all of the players.
When government ‘does something’ they change the odds and change the players. They also change how much the house rakes out of the pot.
All of this takes time and some players simply walk away.
see
http://ingrimayne.com/econ/EconomicCatastrophe/GreatDepression.html
About half way down the page unemployment rate graph
Yes, this is a classic Sowell piece and not the first time he’s articulated it. Though he didn’t mention Obama it’s pretty clear his timing for it.
Dr. Powell knocks another one out of the park. Truth is the enemy of the left.
Ever tried showing proof to a Liberal? They instantly dismiss it and you. It’s the IDEA, you see, that’s important, not the facts.
That graph does not match it’s description in the OP article. It just shows a basically straight line going up in the time period discussed.
It’s not unusual that libs believe what they want to believe about an administration they detest and ignore hard reality about one they worship. I doubt you’ll hear a word from her now. :)
Marking
The government doesn’t just change the rake. It reaches into the winners’ chip stacks, keeps a bunch for itself, and tosses the remainder in the air. The short stacks like this game. The competent players leave with the chips they still have.
But it’s really different from poker because the competent players have the ability to create valuable new chips out of talent and hard work. While to competent players are in the game, the number of chips on the table grows. When they leave, the game stagnates.
Thanks, that sure bears out Dr. Sowell’s piece.
New tagline...
bfl
I explained it to a friend that ‘the market’ hates government intervention because it is unpredictable.
It is as if you were going to bet on horse races, and you researched the heck out of what horses were fast, what jockeys were good, etc; and then some official decides that, no matter which horse actually crossed the line first, THEY would decide who the winners and losers were.
Suddenly you wouldn't want to ‘bet’ your money anymore, would you?
Very good and so true.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.