Hoover Created the Depression

Here's an informative post from HA that gets into the details of the history. I found it helpful to understand. It is a bit sad considering I acquired a great deal of respect for the man and his thinking, which I wrote about earlier. But history is important and ideas have consequences.

"... As with other big government interventions, Hoover made the situation worse by attempting to control one part of the economic picture. When he froze wages, it amounted to across-the-board increases in buying power as deflation set in — and made their companies unable to pass along the costs of production to consumers. After two years, employment had dropped 35% and GDP by 27% as the American economy collapsed. Ohanian argues that two-thirds of that GDP decline can be directly attributable to this deal...."