The Great Depression was not caused by a fundamental flaw of capitalism (greed, speculation, underconsumption) but by two things: the Federal Reserve's failure to do its job as lender of last resort and allow the money supply to contract by 30% from 1930-1933, and the Smoot-Hawley tariff which contracted trade.

causalpending

Speaker

Donald Bauer

Evidence Quote

The Great Depression wasn't caused by a failure of capitalism. It was caused by two things. To summarize, it was caused first by a failure of the Federal Reserve to do its job.

Source

Why You're Getting Poorer: Major Slowdown Ahead | Donald BoudreauxDavid Lin
Created: 8/11/2026, 7:16:28 AM

My Notes

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