Ed Driscoll

When The Forgotten Man Goes Down the Memory Hole

“FDR’s policies prolonged Depression by 7 years, UCLA economists calculate.”
— UCLA Newsroom, August 10, 2004.

“Jobs in the Obama Economy Coming Back Slower Than During the Great Depression.”

— Rep. Dave Camp, Chairman, House Ways and Means Committee, June 1st, 2012.

The irony here, of course, is that Federal Reserve Chairman Ben Bernanke is a much-noted student of the Great Depression and of the work of the late Milton Friedman whose landmark book, A Monetary History of the United States, pinned the blame for the Great Depression on a too tight Fed. As Bernanke told Friedman and his co-author, Anna Schwartz, on the economist’s 90th birthday a decade ago, ”You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.”

But if Hetzel is right, the Fed blew it again.

“Fed study says Bush and the banks didn’t cause the Great Recession. The Fed did,” James Pethokoukis, the American Enterprise Institute, yesterday.