There are a number of similarities between the Great Depression of the 1930's and the economic bubble we are presently in. Harold L. Cole and Lee E. Ohanian at the Wall Street Journal write about one specific aspect- how the Government acts:
How Government Prolonged the Depression
Policies that decreased competition in product and labor markets were especially destructive
The New Deal is widely perceived to have ended the Great Depression, and this has led many to support a "new" New Deal to address the current crisis. But the facts do not support the perception that FDR's policies shortened the Depression, or that similar policies will pull our nation out of its current economic downturn.
The goal of the New Deal was to get Americans back to work. But the New Deal didn't restore employment. In fact, there was even less work on average during the New Deal than before FDR took office. Total hours worked per adult, including government employees, were 18% below their 1929 level between 1930-32, but were 23% lower on average during the New Deal (1933-39). Private hours worked were even lower after FDR took office, averaging 27% below their 1929 level, compared to 18% lower between in 1930-32.
The money quote:
So what stopped a blockbuster recovery from ever starting? The New Deal.
And a bit more:
By the late 1930s, New Deal policies did begin to reverse, which coincided with the beginning of the recovery.
And the two authors are not slouches when it comes to the dismal science:
Mr. Cole is professor of economics at the University of Pennsylvania. Mr. Ohanian is professor of economics and director of the Ettinger Family Program in Macroeconomic Research at UCLA.
