1. “The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.”
One of the favorite arguments of modern liberals is that the Great Depression was somehow caused by an “unfettered” free market in the 1920s. Needless to say, this is blatantly false, as Friedman points out in this quote from the 1962 classic, Capitalism and Freedom. It was rather the excessive government entanglements instigated by the Wilson, Hoover and Roosevelt Administrations which created, and later prolonged, the Depression.