i gave the example of the depression of 1930's due to some reason friend ..If market forces lead to unemployment and "recession" then let it be.
We all know about "stock market correction" phases. We don't really meddle there.
Why do we meddle in economy then?
In free market scenario - there will be a point soon enough when recession leads to services becoming cheap enough. Which will again start the chain of investment.
We meddle in economy because somehow we believe that we can control everything from a single point, and tailor make solutions. We don't realize that a large ecosystem is comprised of a magnitude of small components - each interacting with the other in a dynamic equilibrium.
Its not a static equilibrium.
Its like predator and prey balance. If one things goes to excess - it returns back to equilibrium.
But the Keynesian way - of Govt meddling = fixing the predator and prey ratio. Which doesn't work as desired because the prey-predator equation changes with changing environment and time (say drought, famine, floods, etc). So you keep changing this ratio based on YOUR judgements (which are again arbitrary)
The only reason why we all want control by someone else, some higher authority - be it govt or law or god - is because we don't like to lose.
And we don't like our close ones to lose.
Even though we may be weak and don't deserve to survive.
An equal society promises comfort of survival to each one of us. So we embrace such a view.
The only thing not working in this - is that all life forms are lazy and soon, in such a scenario lose their competitive edge.
Good, enjoy equality and humanity and justness and fairness while the fun lasts.
But when the adversity strikes - we will realize how many remain human, and how many believe in equality.
No, we don't need to wait for a large meteor impact to see this adversity, the most simple example of this would be school examinations.
If everyone decides not to study for the 12th exam - boards would be such a breeze.
But does it happen?
Same thing happens where you work. (Performance appraisals etc)