Of course, Rand was speaking in the wake of the Great Depression. After the market crash, government sprung into action to save the day. The government raised the top tax rate from 25% to 63%, then to 79% and then to 94% and choked off capital formation – the lifeblood of CAPITALism – you see, it is right there in the name. The Government also allowed the money supply to shrink by 1/3rd and spread the Depression around the globe by cutting off trade. That turned a significant recession into the Great Depression. Not so, according to FDR. Roosevelt thundered that ‘The rulers of the exchange of mankind’s goods have failed, through their own stubbornness and their own incompetence . . . Practices of the unscrupulous money-changers stand indicted . . . in the hearts and minds of men …’ So what was FDR’s answer? The same poison that caused the disaster – government action.
Too bad many historians can't learn from what they spend all their time studying and teaching. That's what happens when you're driven by political ideology instead of facts.