Reply #86: Unregulated Capitalism Lead To Wild Swings In The Market

[Yavin4]

and various boom and bust cycles. From the start of the industrial revolution, our economy went through a series of boom and bust cycles which lead to numerous bank runs. This is why the Fed was created in the first place. However, even the Fed could not prevent the Great Depression.

And, if you study the Great Depression at all, you'd know that FDR injected a mild form of socialism into our economy to even out the effects of capitalism. He regulated the banks and allowed unions to collectively bargain. This lead to a 50 year run of financial security.

In the past 30 years, there's been a concerted effort to remove all of the work that FDR did, and we're back to boom and bust cycles. I'm only 46, but I've witnessed three huge market sell offs in my lifetime, 1987, 2000, and 2008-9.

Hey, I'm sure that there were smart people like yourself who never thought that Communism would ever fail.