Submitted by CARPE DIEM

Today some have questioned whether we could have another 1929-style Depression. The answer is no — at least, it shouldn’t happen.

Then we had over 25% unemployment; now it’s 6% and could move somewhat higher, which is typical for economic corrections (see chart above). Then, by 1934 about one-half of mortgages were in default, today it is only 6%. Nearly 94% of homeowners are still making their monthly payments.

So what’s the big lesson to be learned here by the public? That this financial crisis was the result of yet another Big Government program that had great intentions but created devastating unintended consequences that hurt millions of people.
It was not the fault of African American groups, which naturally want to help their people. Nor was it the fault of America’s free enterprise system, or a lack of enough regulation. No, it was Big Government once again trying to run a private industry.

~IBD Editorial

Visit 1800blogger to see all of our industry leading blogs.