Government Regulation and Action

I was thinking resistantly about regulation. what is the proper amount of regulation in hard economic times? I know that most people are probably asking this question a lot lately, but when is regulation it "necessary"? Freedmen thought that the great depression was a result of bad Federal reserve policy. Keyness Thought somehow their was not enough aggregate demand in the economy. And Shumpeter believed their were cycles in the economy that lead to ups and down in the economy according to the level of innovation and demand, he called it "creative destruction". So what causes change? Action. what influences action? Knowledge. And how do we get useful knowledge? Research and augmentation. So what do you think? challenge one of this ideas. What will influence your actions?

Economic Theory

I was recently listening to some of my lectures about economics that i have on my Ipod and herd something very interesting. Joseph Shrumpeter an economist during the early twentieth century wrote that capitalism is ultimately doomed for this reason. That capitalism will give you 2 or 3% GDP growth rate and that over that next 50 years may be able to double the standard of living, the problem is that in a time of depression people don't care what is going to happen in fifty years. The more a society wants things now the more they will tend to shift away from the long run.
I am not saying that i ager or disagree with Joseph. I want to know what you think and why? is capitalism doomed?