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