how involved should the government be in the economy during a depression??

Answer 1

never. government spending distorts and CAUSES depressions through their interference with the market.

Answer 2

To answer the question as Madison might, it should be as little involved as possible.

Obviously it would be involved no matter what, but well-meaning decisions often cause terrible problems. The good intentions of the Roosevelt administration at least doubled the duration of the Great Depression, while doing nothing at all wouldn't have done the same. The best example is not the modern depression, however; the descent of the Roman Empire into the 'Dark Ages' is by far the best example of how too much government can literally destroy a civilization. All the things tried by the Roosevelt Administration, from price & wage controls, to confiscatory taxation on the wealthy to stacking the Supreme Court (or equivalent) were tried by the late Roman Emperors, and it simply got worse and worse until the bureaucracy broke. Pockets of Roman peace and order remained all over Europe, but between was poverty and ignorance. The barbarians that conquered so much of the Empire were victims of the unjust laws that Roman Emperors and magistrates used to prop up their failing economy, and corruption grew dramatically as power concentrated into government hands.

We certainly don't want to repeat all those errors, but we probably will. The government can do a lot to stop a depression from happening, but once it starts it can only make thing worse, because doing nothing, even in instances which require it, is not something government at any level is good at. If things start to slide only a leader of superb courage would be able to say 'stop!' to the crowds of bureaucrats convinced that they can solve any problem with a few well-chosen regulations, and few such men (or women) exist. If the slide starts, the best hope is to survive in some pocket of stability, but figuring out which area will be stable and which will collapse into anarchy is not easy. Still, the fact remains that the Roman Empire would've gone down with or without the barbarians, so we really don't need any to bring us down. We can do it ourselves just as well as any Romans.

Answer 3

there'll continuously be organic upswings and downturns interior the economic device...it is a fact of loose marketplace. with out government involvement, we would finally pop out of the present recession. the only way that i think of government would desire to be in contact is to ease the load on taxpayers to attempt to strengthen spending. easily, offering tips to the unemployed, offering tax incentives that inspire spending, and offering different tips the place mandatory. the only way the present recession is going to end is that if people start up spending and making an investment back. "Stimulus programs" are no longer something greater effective than a bandage. you could throw billions of greenbacks at a organization, yet while the investors pull out and consumers are no longer paying for, then the kit will ultimately fail.

Answer 4

Totally. If the government did nothing to alleviate a depression could/would industry, charity, religion or any other viable entity do more or better?

Answer 5

Heck, how do you think the depression started, the gov of course

Answer 6

It should stop causing the depression in the first place.