Regardless of how earnestly bankers trumpeted the virtues of laissez-faire, in times of unrest markets looked to Washington to provide stability.
The book "America's Bank" by Roger Lowenstein illustrates the contradiction in the banking industry's commitment to laissez-faire economics. While bankers often praised free markets, history shows that during periods of financial distress, these same bankers sought intervention from the government to restore stability. This reliance on Washington highlights a dependency that contradicts their public advocacy for minimal government involvement in the economy.
This dynamic reveals a deeper truth about the financial system: when faced with uncertainty or crisis, the market's faith in self-regulation wanes, leading to a demand for government support. Lowenstein's exploration of this theme underscores the complexities of economic ideology, showing that in practice, the call for a free market decreases when challenges arise, prompting a call for federal intervention.
