The View From 1776
Monday, April 20, 2009
Government-Imposed Uncertainty Deepens The Recession
Repeated Federal interventions in the economy make businessmen fearful of what the government may do next. And that fear prolongs recessions.
In addition to the problem that New Deal regulations prevented reducing costs enough to produce at a profit, businesses did not expand and rehire, because they were in perpetual uncertainty and fear about what FDR would do next.