Abstract

http://ssrn.com/abstract=1423981
 


 



Black Tuesday and Graying the Legitimacy Line for Governmental Intervention: When Tomorrow is Just a Future Yesterday


Donald J. Kochan


Chapman University School of Law

June 22, 2009

NEXUS Law Journal, Vol. 15, 2010
Chapman University Law Research Paper No. 09-23

Abstract:     
Black Tuesday in October 1929 marked a major crisis in American history. As we face current economic woes, it is appropriate to recall not only the event but also reflect on how it altered the legal landscape and the change it precipitated in the acceptance of governmental intervention into the marketplace. Perceived or real crises can cause us to dance between free markets and regulatory power. Much like the events of 1929, current financial concerns have led to new, unprecedented governmental intervention into the private sector. This Article seeks caution, on the basis of history, arguing that fear and crisis mentality lead to legal reforms that become permanent and may be the result of an irrational reaction. At times of crisis, individuals succumb to increased governmental authority. But, when the real or perceived crisis subsides, many accepted increases in governmental authority empirically tend to be irreversible. Temporary satisfaction can bring long term consequences. The crux of this cautionary tale is that crises can gray the legitimacy of governmental power and the citizenry's acceptance thereof.

Number of Pages in PDF File: 14

Keywords: Black Tuesday, Stock Market Crash, Depression, Fear, Crisis, Law & Economics, Roosevelt, Obama

JEL Classification: A12, B20, B30, D60, E50, H00, H10, H30, H50, H60, K00, L51, N00, P00, P16

Accepted Paper Series


Download This Paper

Date posted: June 24, 2009 ; Last revised: April 4, 2013

Suggested Citation

Kochan, Donald J., Black Tuesday and Graying the Legitimacy Line for Governmental Intervention: When Tomorrow is Just a Future Yesterday (June 22, 2009). NEXUS Law Journal, Vol. 15, 2010; Chapman University Law Research Paper No. 09-23. Available at SSRN: http://ssrn.com/abstract=1423981

Contact Information

Donald J. Kochan (Contact Author)
Chapman University School of Law ( email )
One University Drive
Orange, CA 92866-1099
United States
714-628-2618 (Phone)
714-628-2576 (Fax)
HOME PAGE: http://www.donaldjkochan.com
Feedback to SSRN


Paper statistics
Abstract Views: 2,264
Downloads: 264
Download Rank: 63,120

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.453 seconds