Since you guys believe in 100% laissez-faire economic system, how would another 1930s depression be prevented?

Free market capitalists condone neither central banking nor cronyism since each selects winners and losers outside of voluntary exchange.

"Crony capitalism" is a built in "No True Scotsman" fallacy. All capitalism is crony capitalism, because all capitalism relies on the enforcement of property rights, and all enforceable property rights requires that the government pick winners and losers.

The programs involved the same ludicrous techniques repeated in the current depression such as monetary inflation and increased government spending, each of which feeds into the cronyism and miss-allocation of resources which created the event in the first place and delays the correction.

The problem with your analysis is that it boils down to moral arguments, not economy ones. You disapprove of monetary inflation because it offends your economic Gods, but you're not actually explaining how it made the Great Depression worse.

It's like watching a a Westboro Baptist explain how gay people and abortion cause hurricanes. To them, the link is obvious: Gay people are sinful, and therefore God wants to punish us. But the analysis never goes any deeper than "I personally don't like it.

Rather than again allowing the free market to correct itself

Your problem here is that you assume the "free market" to be some sort of benevolent, selfless God that would only help others if given the chance. It's not.

The "market" is ruled by selfish SOBs who will happily screw you over if given the chance, and that's exactly what happened during the financial crisis. The market worked exactly the way that it was supposed to: A bunch of sociopaths found a way to raid the economy at the expense of everyone else. They did exactly what they set out to do.

The problem was the the use of credit default swaps, which was an entirely free market invention that grew from $3.7 trillion in 2003 to $62.5 trillion in just 4 years. These encouraged banks to give out bad loans (because the bad loans would be insured many times over) while also committing fraud (by lying about the quality of these loans to the insurer).

The goal of free market capitalism isn't to improve the economy for everyone. The goal of free market capitalism is to make yourself very rich. Wall Street got rich by burning down buildings for the insurance money.

the Fed has continued to expand the money supply, keeping interest rates artificially low and therefore prolonging the pain until the market corrects itself through another crash.

Again, you're making a moral argument.

The problem wasn't that the Federal Reserve made loans easier for housing. The Fed didn't put a gun to people's heads and force them to buy houses against their will.

The problem is that free market capitalists began buying houses out of greed, rather than necessity. People started buying houses that they didn't actually want because they wanted to flip those houses at a higher price later on. Banks started issuing loans that were no good because they knew the bad loans could be insured many times over via fraudulently rated credit default swaps.

It would help if you understood logic and economics enough to comprehend these things

It would help if you understood the difference between logic and circle jerk libertarianism.

You haven't presented a single logical or economic argument that demonstrates a causal link between the thing you're complaining about and the actual result, beyond, "I think this thing is bad, so it's responsible for all the bad things that happened."

The crash happened because greedy people seek personal gain at the expense of others. Deregulating the market doesn't fix that problem. It actually makes the problem worse.

/r/Libertarian Thread