^^It is their fault. I just equated the losing of their property as their own punishment. Of course it's self-inflicted. But you're right about the terrible actions of the government. I totally agree with you there. I actually agree with everything you just said, I think we're just getting confused about terminology.
And for Goldenboy, I thought you might enjoy this:
Response to the "Market Failure" Drones - Thomas E. Woods, Jr. - Mises InstituteThus, for example, the Chicago School has been critical of the Fed, but for the wrong reasons: the Fed supposedly failed to create enough money when the money supply began falling. This is not exactly a free-market criticism, but (surprise!) it's the only one the mainstream has bothered to acknowledge. As a matter of fact, in the nearly two years following the 1929 stock-market crash the Fed engaged in what were at that time the most aggressive rate cuts in its history. (This is in contrast to the Fed's rate increases during the 1920–1921 downturn, which was over quickly but which by Chicago's reasoning ought to have been more severe and persistent.) Milton Friedman and Anna Schwartz, Murphy concludes, gave birth to
"a myth, namely that the Federal Reserve sat idly back and allowed the economy to implode. That myth — like the myth that Herbert Hoover sat idly back and watched the Depression unfold — is continuing to drive misguided policies today."
Murphy also includes in this chapter a very useful section on deflation, a subject nearly impossible to find treated without breathless hysteria. To blame the Depression on a decrease in the supply of money is to get the relationship exactly backward. Moreover, the money supply fell by the same percentage between 1839 and 1843 that it did between 1929 and 1933, but robust increases in real consumption and real GNP followed. Under the heat of Murphy's magnifying glass throughout this much-needed chapter, the arguments of the deflationphobes melt away.