Michael Boldin, writing for LewRockwell.com, reminds us that economic insanity ruled the halls of government during the Great Depression. In his article, It's Not About Political Parties. It's About Liberty, he writes:
During the Great Depression, while millions of people were out of work or starving, the FDR administration required American farmers to restrict production of wheat in order to raise prices.
As a farmer, Roscoe Filburn was told he could plant a little over 10 acres of wheat, which he did grow and sell on the market. He also decided that it was in his best interest – possibly because he had less revenue due to the production limitations – to plant another 10 or so acres. But, the “excess” wheat grown was used at home to feed his livestock, among other things. He never sold it, so he saw this as being outside the scope of Congressional power to regulate “interstate commerce.”
What did the federal government do? The expected – they ordered Roscoe to destroy his crops and pay a fine. Think about that for a moment and you’ll really understand the evil of having too much power in too few hands. At a time when large numbers of people were starving, these thugs in government forced people to reduce production for the sake of raising prices. From this, it seems clear to me that corporate bailouts have been going on a long, long time in America.
Roscoe sued, and the case went all the way to the Supreme Court. In Wickard v Filburn, the Court ruled against him and the result was that the Federal Government assumed a power that was new in the history of this country. It now had the power to control the growing and consuming of something that never left one’s back yard.