There exists a common 'get-out' clause amongst politicians and academics alike, spouting off phrases such as "it would have happened anyway" or "it happened because we didn't do enough" in response to failed intervention. The issue is the onus of proof: they present their (flawed) economic models which show their policy working perfectly and conclude that the only logical explaination as to why their policy (bailout, stimulus, tariff, subsidy -- whatever) didn't work was because of some external factor -- greedy businessmen, China, the opposition (for example adding 'compromises' into it which stop it working to its full effect). But the answer always stares them right in the face -- it's the actual policy itself that is flawed.
Government intervention has and will never work. The market must be allowed to correct itself; industries must be able to shrink or die, allowing new industries to accumulate capital and labour and grow; the price system must be allowed to work as freely and undistorted as possible.
"The market processes give meaning to the capitalistic economy. They place entrepreneurs and capitalists in the service of satisfying the wants of consumers. If the workings of these complex processes are interfered with, then disturbances are brought about which hamper the adjustment of supply to demand and lead production astray, along paths which keep them from attaining the goal of economic action—i.e., the satisfaction of wants. These disturbances constitute the economic crisis." - Ludwig von Mises, 1931, The Causes of the Economic Crisis: An Address
The only way to stop major economic crises is to stop government interferring with the market. Unfortunately, it seems (almost) no one learned from the great depression or any other crisis in our history; instead they say that government "didn't do enough". Alas this is what the people want to hear, that there's some magical fix to this mess and that the government can save them. They don't want the truth.
We can only hope that when this crisis is over people will finally open their eyes and realise they have been misled. I just hope it isn't too late by then, comrades.
"Freedom is indivisible. As soon as one starts to restrict it, one enters upon a decline on which it is difficult to stop." -- Ludwig von Mises, Human Action
