TOLFA Segment 15, Question 6

After government evaporates and America becomes free, will there ever be another Depression? Why, or why not? Depressions happen at the most unexpected times, so yes of course there could be one. On the very eve of the 1929 Crash, expert investors were saying the boom would continue as far as the eye could see.
Yes, they are caused by unwise investing, and even though people will be placing only their own money and even though it will be sound money such as gold, humans are not infallible and will sometimes get it wrong.
No, for a bust or depression results not from a few bad investment decisions but from a general, universal excess of investing in capital and other goods. In a free society there will be no way for that to happen.

Don't hurry away; even when you've got the right answer, try clicking on the others to see why they are wrong! Then when you have correctly answered this make notes in your student notebook, proceed to Segment 16..

Segment 15 Page