The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.
[As we enter another Great Depression keep that in mind. And also keep in mind that FDR and his complete lack of understanding of economics which extended the depression created by the high tariffs under the Hoover administration–who “Long before he entered politics he denounced laissez-faire thinking“.
FDR insisting on extremely high taxes for the rich and frequent changing of the law created great uncertainity for investors. It was the death of FDR and Truman’s friendly attitude to business that finally brought the country out of the depression.
Read New Deal or Raw Deal?: How FDR’s Economic Legacy Has Damaged America for the details.–Joe]