Scientism: The New Road To Serfdom, Part 4

In 1928 there was not a shred of evidence that free market capitalism needed a hyper-active Fiscal and Monetary Nanny in Washington to stay on the straight and narrow of steady growth and rising prosperity.

Indeed, aside from the sweeping financial disruption of the Great War, which was the work of politicians not capitalism, the facts were dispositive:

• Between 1870 and 1914, the Federal government ran a surplus during 33 out of 44 years and there was no central bank, while per annum growth averaged 4.7% and 2.4% for real GDP and per capita income, respectively;
• During the post war era of the Roaring Twenties between 1922 and 1929, the budget generated a $6 billion cumulative surplus, while real GDP expanded by an average of 6.0% per annum.

Q.E.D.