Government Intervention Often Aggravates Problems

The effectiveness of government interventions in addressing crises is highly questionable. Historical analysis suggests that prolonged government inactivity did not worsen the economic situation during depressions prior to the Great Depression, which took a turn for the worse only after significant government actions were implemented. Specifically, the Great Depression's peak unemployment occurred shortly after the government began intervening, leading to sustained high unemployment levels throughout the 1930s. This indicates that government intervention may exacerbate issues rather than resolve them, prompting a reevaluation of the assumption that government action is inherently beneficial.