The Mysteries of the Great Depression Finally Solved

The Great Depression of the 1930s may be a dim memory now, but its impact is still being felt in policy and theory. The prolonged depression created an environment critical of laissez-faire policies and favorable toward ubiquitous state interventionism throughout the Western world. The depression led to the Welfare State and boundless faith in Big Government. It caused most of the Anglo-American economics profession to question classical free-market economics and to search for radical anti-capitalist alternatives, eventually converting to the new economics of Keynesianism and demand-side economics.

Source:http://www.thefreemanonline.org/columns/the-mysteries-of-the-great-depression-finally-solved/