[SoonerCoug]

Also, I think social safety nets such as social security, medicare, welfare, and unemployment insurance act as automatic stabilizers of the economy during recessions.

None of this existed prior to the Great Depression, of course. This is an example of government involvement that may seem inefficient and silly during times of plenty. However, I think these programs also help keep lots of people afloat during hard times, thereby preventing the pessimism and downward spiral that can lead to more prolonged and severe recessions.