An economic downturn in 1920-21 sent unemployment up to 12 percent. President Warren Harding did nothing, except for cutting government spending. The economy quickly rebounded on its own. In 1987, when the stock market declined more in one day than it had in any day in 1929, Ronald Reagan did nothing. There were outcries and outrage in the media. But Reagan still did nothing. That downturn not only rebounded, it was followed by 20 years of economic growth, marked by low inflation and low unemployment. - Thomas Sowell
Even in 1933 if you read the Annual Report [of the Federal Reserve] you will "discover" how much worse things would have been if the Federal Reserve hadn't behaved so well! - Milton Friedman
The liberal/progressive narrative that I've been hearing for a while, and will continue to hear, I'm sure, all the way into November, is that Obama put a "bottom" under the economic "freefall"--implying a certain physics in which the recession would lead to X% (20%?, 25%?) unemployment under the sheer momentum of the object. After all, in physics, the body keeps moving at a constant rate unless another force acts upon it.
Whenever the economic stagnation is juxtaposed against repeated "stimuli"--attempts at defibrillating the economy--that have contributed to a deficit that dwarfs Bush's record-breaking expenses on bailouts and war, the left-wing narrative is JUST THINK HOW BAD IT
WOULD HAVE BEEN IF THERE WERE NO STIMULUS. This is exemplified by Andrew Sullivan's typical description: "
It put a bottom under the free fall."
From well before the 1700s even into the 1910s, doctors swore by bloodletting. The theory was simple enough, but doctors would have told you that much more important than the enviable simplicity of the theory was the fact that they had seen it work over and over again in actual practice. We now know that patients pulled through in spite of bloodletting rather than because of it. But then, if a patient had died without the treatment, a doctor would have opined that the sufferer may well have had a fighting chance if only some blood had been let. If a patient's recovery was slow after bloodletting, a doctor would not have suspected that the recovery might have been faster without treatment. (Just think
how much worse off he'd have been if we hadn't let out his blood!) And if a patient had died, they naturally would
never have suspected that the patient
might have pulled through without the treatment; the patient was obviously a goner anyway--the doctor can only do so much.