Well, you're correct that the Great Depression is significant in a number of important ways. I also think our public schools and society has created a number of myths about the great depression.
http://www.neoperspectives.com/greatdepression.htm
But as many modern economists are now suggesting, and contrary to popular belief, Roosevelt's higher government spending on his many new programs combined with higher taxes and shrinking of state power actually prolonged and deepened the Great Depression. A good illustration of FDR's role in this can be found in Jim Powell's book, "FDR's Folly" (1). Today we are stuck with many growth retarding programs like Medicaid, Social Security, and countless others that have far outlived their useful (hurtful) purpose. These programs have and continue to drain trillions from our GDP and have fostered corruption by the powers given to the many created regulatory agencies.
But, in their eagerness to blame Roosevelt, Conservatives today often forget that Republican President Herbert Hoover is credited with triggering the Great Depression by drastically reducing the money supply, ostensibly in order to prevent it. He also responded disastrously by passing the Revenue Act of 1932 which increased the top income tax rate from 25% to 63% with the aim being to restore business confidence by reducing the deficit. The results of this tax increase was an even greater deficit, plummeting tax revenues and a greater Depression (5). If President Hoover had more gradually and reasonably tightened the money supply and cut taxes when the depression first hit, the outcome might have been far different.
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So, I love that JRB attacks Roosevelt for what he is, the worst president ever in the history of the United Sates. But you're point about private and public similarities in overrextending credit etc.. is well taken and valid. But, if they are both the same, then why not just keep it private?
"I am, in fact, very concerned about conservatives who believe that large unaccountable private institutions are somehow less of a threat to individual liberties than are public institutions, this after Enron."
I think this is a criminal case, executives stealing from employees (by nulifiying their promised pensions/health benefits etc..) and should be prosecuted as such.
I often hear this argument, that private companies can become just as tyrannical as government. I believe this to be false. Private companies cannot make law. Private companies cannot throw you in jail if you do not comply with their laws. Government does this all the time, in order to, in effect, legally steal from us, or enabling private companies to do so. (some examples):
http://www.neoperspectives.com/rhetoric.htm
So, I believe Government will always be a greater threat than any private institution.
Janice Rogers Brown believes this, which is why I support her for the SCOTUS. Some more quotes by JRB:
http://www.neoperspectives.com/janicerogersbrown.htm
That New Deal Programs and the liberals that begate them have long outlive their usefulness is a long valid criticism. The criticism that the new deal sustained the depression is a bit hard to defend. Everytime programs were cut back or not renewed unemployment went up and economic growth slowed again - which is why Roosevelt was able to continue to expand these programs despite prolonged criticism from the Republicans, from the Supreme Court and from members of his own party, including his own treasury secretary. Now you might make the argument that you cannot measure the situation by looking at small fluctuations and that the only possible program for success was for the government to stay out of it altogether.
The Republicans had plenty of time and opportunity to attempt to demonstrate that thesis and failed. Now maybe you could argue that they should have been given 20 years. That is a generation though and no one has the tolerance to stand high unemployment for a generation to prove a point. It is political suicide. It was for the Repubicans at the time.
Roosevelt won 4 terms and he is dead. Stop fighting that battle. The vital issue for the Republicans should be a positive program to do the best for the citizenry of the US now given the world situation as it is today.
Well, the great depression was something different because it had already lasted may years before Roosevelt took office. It had already proven itself impervious to the normal efforts to expand credit which assumes that there is someone wanting to expand his business and will do so upon the supply of credit on acceptable terms. When no one is credit worthy and no one can put together a sound business plan for expansion because he has no potential customers, then you have a structural problem which requires a different kind of solution than the one the interest rate technocrats can provide.
Well, I don't. They both bear watching.