Artificial booms and busts by unelected oligarchs are worse than grassroot booms and busts.
It's also impossible to honestly say there was a controlled experiment which proved that there are busts and booms in a free and open society (with a free market).
The Federal reserve was created to "solve" the supposedly endemic (natural) problem of bank runs as evidenced by the 1907 panic.
However that panic was caused by the US government's own investments. Again (and this is the most common pattern in the history of government, it is more prevalent than coups, propaganda, or war) the solution to the problem they created is worse than the problem itself. Geometric cascade of waste and failure.
The Bank Panic of 1907 was a short-lived banking and financial crisis in the U.S. that occurred at the beginning of the twentieth century.
It resulted from the collapse of highly-leveraged speculative investments propagated by easy money policies pursued by the U.S. Treasury in the preceding years.
Notice at the start of the self-inflicted wounds the difference in power and interests:
- Without a government central bank to fall back on, U.S. financial markets were bailed out from the crisis by personal funds, guarantees, and top financiers and investors, including J.P. Morgan and John D. Rockefeller.
Those filthy capitalists did the thing that supposedly we need government to do (fix problems created by the government).... and what's more they did it with their own money instead of stolen money.
A perfect example of why appeasement is a bad strategy with people who have no idea that they're in the wrong (the socialists).
So in conclusion, there may not be natural depressions. Of course businesses and stocks will rise and fall, and will the personal fortunes of individuals and families in direct proportion to how much they risked and how correct they were (about economic matters). Yet it's very possible that in a truly free society with a truly free market those who have not risked their precious assets have nothing to fear from the speculative investments of others. It may also be that what we think of as the stock market today is a gambling ring created by the artificial government punishment of saving, the artificial promotion of diversified portfolios, and the uncertainty created by constantly shifting government regulations.
It's possible that a free economy's stock market is a fairly boring place where careful investments are made by people who know what they're investing in any why it's a good idea. That employees invest primarily in their own company for which they have respect and loyalty and work diligently to power to success, ironically such behavior must inevitably lead to something more of the holy grail of communism "worker ownership of the means of production".
It was more like that before the birth of the deep state which I would peg around the turn of the century when corrupt and devious men bent on world domination and personal enrichment decided that a nation's currency was just another weapon.
