The argument isn't that if only the government keeps out there will be no pears, but that if the government keeps out the following recoveries will be faster and those responsible for the crash will take a hit financially, so hopefully someone learns a lesson or two.
From 1869 to 1918, the per-capita GDP increases from $4600 to $12000 -- a time constant of 1.95% per year. From 1918 to 2011, the per-capita GDP increases from $12000 to $47300 -- a time constant of 1.47% per year. That is, the pre-Fed period experienced 32% faster growth over-all, or at least that's what it looks like, to me. Feel free to contest my analysis.
