"Bad economic policies created the severe bear market in stocks in the 1970s. Even worse economic policies created the agonizing Great Depression in the 1930s. The Federal Communications Commission caused the bear market of 2002. (For an explanation of that one, see archierichards.com for the column dated 3/3/03.)
The policies of today, despite the subsidies, are far better. Even the Federal Communications Commission is reversing its damaging policies of the 1990s. Both government officials and the people have learned what makes good economics.
Government creates the framework for business. The framework has improved. For the foreseeable future, the severe bear markets of the 1930s and 1970s, with unemployment rates of 12 percent or more, will not recur.
The stock market will continue fluctuating, of course. But it will fluctuate as much on the downside as the terrifying bear markets of the past. Invest with confidence. Things are looking up."