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The House That Uncle Sam Built

The Untold Story of the Great Recession of 2008

DECEMBER 01, 2009 by STEVEN HORWITZ

By Steven Horwitz & Peter Boettke

The Great Recession (or the Great Hangover) that began in 2008 did not have to happen. Its causes and consequences are not mysterious. Indeed, this particular and very painful episode affirms what the best nonpartisan economists have tried to tell our politicians and policy-makers for decades, namely, that the more they try to inflate and direct the economy, the more damage the rest of us will suffer sooner or later. Hindsight is always 20-20, but in this instance, good old-fashioned common sense would have provided all the foresight needed to avoid the mess we’re in.

In this essay, we trace the path of the recession from its origins in the housing market bubble to the policies offered to cure the aftermath.

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ABOUT

STEVEN HORWITZ

Contributing editor and Freeman Online columnist Steven Horwitz is the Charles A. Dana Professor of Economics at St. Lawrence University and the author of Microfoundations and Macroeconomics: An Austrian Perspective, now in paperback. This summer, he will be lecturing for FEE at Rebels with a Cause.

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