Anti- crisis
inaction plan

Crisis

How long will it last?
P
r
e
v
i
o
u
s

It depends!

Crisis action plan

Blame markets!

Anti- crisis
inaction plan

Blame Fed!

Panic of 1837

«I refrain from
suggesting to
Congress any
specific plan … its
adoption would
not promote the
real and
permanent welfare
of those they
might be designed
to aid»
– Martin van Buren
(D)

Pre-crisis industrial
production achieved
in 1838, in 2 years

Black Tuesday
(1929)

«Some of the reactionary economists
urged that we should allow the liquidation
to take its course... We would not follow
the advice of the bitter-end liquidationists»
– Herbert Hoover (R)

«Practically the whole New Deal was
extrapolated from programs that Hoover
started» – Rexford Tugwell,
F.D. Roosevelt (D) aide

Pre-crisis GDP Achieved
in 1936, in 7 years

Black Monday
(1987)

«Adjustments
can and will
continue to be
made to keep
this country on
the path to
fiscal
prudence»
– Ronald Reagan
(R)

Pre-crisis industrial
production achieved in the
same year

Why inaction?

Crisis
is
a cluster
of
errors

Government just can’t
make from fish soup

a new aquarium

It can only
transfer
losses by
force

and disrupt
profitable activities

«The objective of credit expansion is to favor the
interests of some groups of the population at the
expense of others. This is the best that
interventionism can attain when it does not hurt
the interests of all groups». – Ludwig von Mises

Anti-crisis inaction plan?

Crisis action plan?

Haste makes
waste!
By Vadim Novikov Special credits to Victor Agroskin