When did the Great Depression end? Often Roosevelt is given credit for ending the Great Depression. Anyone who reads knows that he was responsible for the depth of the Depression. During the 40s the economy temporarily converted to a command economy. Business investment in the private economy began immediately when Roosevelt died. Despite all of the lofty theories that were abound, the success of the economy depended on things no one in government could see. No one was willing to invest in plant and capital equipment when there was an administration bent on destroying the free market system.
The second Great Depression actually started in 2007. Suffering at the top has been minimal so far due to Quantitative Easing or more precisely the Fed’s political agenda. Why are corporations not investing in plant and equipment today? Corporate leaders know the folly of government economic policy. They are happy to accept the gratuities that go along with quantitative easing. Insiders get paid big time when the price of their stock gets run up. In other words, pigs won’t back away as long as the farmer keeps throwing slop into the trough. They are smart enough however, not to invest in the future while quantitative easing is destroying the economy.