I would say that the Keynesians couldn’t point to any recession that has ever been ended as a result of government meddling either before or after the Great Depression and had that depression been handled as the one before it was then it would never have been so “great”, so deep, or so long.
Of course the K-bags will counter with the tired narrative that it was WWII that ended the great depression and that is proof enough that government involvement was the correct remedy. To this you can inform them that even if that were correct (which it is probably not) then the only example of their precious form of control economics ever solved a problem it required the conscription of nearly every man, woman and child into the war effort; that most industry become engaged in creating a product that was only in high demand because it was constantly being blown up; shortages and rationing; the destruction of Europe and Asia; the deaths of 50 to 70 million people and the detonation of two atomic bombs. Don’t get me wrong saving the world from the oppressive evil of the Axis powers was a good thing . . . but it is hardly an economic recovery plan.
The other thing to be aware of regarding Roosevelt’s Depression is if Keynesianism is so great, why did FDR have a huge crash in 1937, within the Depression?
Here is an article on the subject.
The Great Depression Facts: Double Dip Economic Slump
http://www.marketoracle.co.uk/Article8778.html
I learned of this first from reading The Forgotten Man earlier this year.
I agree 100%. Everything the government does hurt recovery or at least further distorts the imbalances the market is trying to correct with a recession. Was isn’t “good” for the economy either. I always get a good laugh when they say that natural disasters are good for the economy because all the effort going into repair and rebuilding boosts GDP and employment. Well take that to its logical conclusion and we should be bombing all of our cities ‘round the clock.
You can't point to a single financial crisis in which authorities didn't intervene to help financial insitutions and the markets. Yeah it is more pro business and small government if that comes through big tax cuts, but it is still support.