The crash did not cause the Depression: that was part of a far broader malaise. What it did was expose the weaknesses that underpinned the confidence and optimism of the 1920s – poor distribution of income, a weak banking structure and insufficient regulations, the economy’s dependence on new consumer goods, the over-extension of industry and the Government’s blind belief that promoting business interests would make America uniformly prosperous.

Here is a principle to use in all aspects of economics and policy. When you find a good or service that is in huge demand but the supply is so limited to the point that the price goes up and up, look for the regulation that is causing it. This applies regardless of the sector, whether transportation, gas, education, food, beer, or daycare. There is something in the way that is preventing the market from working as it should. If you look carefully enough, you will find the hand of the state making the mess in question.

It’s all very well to run around saying regulation is bad, get the government off our backs, etc. Of course our lives are regulated. When you come to a stop sign, you stop; if you want to go fishing, you get a license; if you want to shoot ducks, you can shoot only three ducks. The alternative is dead bodies at the intersection, no fish, and no ducks. OK?

(Getting Control of the Frontier, Gainsville Sun, March 22, 1995)