Dr. Thomas Sowell again has another brilliant piece this week, examining how during the Great Depression government intervention did more to harm the economy than help it. People are very nearsighted when it comes to government activism. They either demand the government intervene to help something or think the government has their best interests in mind when they create a new program. However, they fail to examine what the consequences might be, consequences are worse than the attempted cure or even doing nothing. For example, the unemployment rate after the stock market crash in 1929 was on the mend until the government stepped in to fix it. It soon rocketed to 25%. But the great, compassionate government was really doing the best things they could for the people, right?
We’re seeing the very same thing today. The government has acted to “stimulate” the economy and well, how’s that going? They said with the stimulus unemployment wasn’t going to go above 8% and by now it was to be much lower. Well with it unemployment actually went higher than what they predicted it would be if we were to do nothing (9%) and is currently sitting just under 10%. Worked real well, didn’t it?
Update: Here is a clip from Glenn Beck’s show today.