Move a little forward from Hoover's time, when there was no business profits to protect, to the end of the second world war. The johnnies came marching home again hurrah to the sound of full employment, at least to the 5.5% level and why? Simple. Might as well hire, flush from the fruits of a booming military driven prosperity, there was money to conserve, unlike 1932, or 35, or 39--now you had something to protect, otherwise you had to give three quarters of the dollar to Uncle anyway. Might as well throw in another quarter and see if you could make the dollar back and then some. And this is during the period where unions were on the rise.
Yes, it is counterintuitive. Just like pushing the stick forward on a Mach 1 dive, it runs the opposite of what you'd normally do. Pull the stick back and you're a part of the ground, push it forward, and the nose picks up and levels out nicely......
Do you understand that the single biggest item of the fiscal cliff is simply letting Bush's tax cut expire? In other words it will be back to what it was under Clinton. Based on the kinds of mindless Democrat oriented things you say I would assume you would think that's a good thing - or did at some point in time. Can we say cognitive dissonance?
For fiscal cliffers, the "only" thing is as onerous as taxes is death, and while both are inevitable, they don't have to hurt as badly as you'd think.
The hidden agenda in all of this budget nonsense, is spend. Both parties spend and spend.
Now the two subsets of this "given" have their adherents, and I belong in neither camp.
I am not in the camp, and quite frankly, I don't know why we should be, of the folks who tax and spend.
I am also, no matter how likeable and affable the Presidential speaker, of the mindset that borrow and spend, which became popular as if it were a good thing, during those wonderful years we quadrupled the national debt (that's 400%) defeating Russkies already bankrupt by the military arms race, around 1978. 1978 is when I began herding battalions of Army troops home from Germany by the droves, because "the war was over". 2 years before. Yet we quadrupled the national debt. Not fifty percent. 400%. If you don't think that happened, well, there you go again.
So I've proposed some modest changes in the spend side, that might help, no matter whether you get the money from the poor and middle class, where most comes from, or you borrow it from a gullible world that thinks you're the cats pajamas and your money is real too.
Go back to a conscription service where three to four years was compulsory. That way you can cut the pay and benefits for uniforms and snivel servants back to days when we won wars. About 2/3rds the budget would go away. Who knows, patriotism you don't have to buy!! What a novelty!!
Bring home the Navy and Army overseas, and quit thinking it's WWII 1946. We're not wanted, we're not needed, and we're going bankrupt. That's why we have nukes. For bad guys that just don't get it. There goes another 1/3rd that needless waste of a budget.
Take the CIA out of meddling with the Muddle East so we don't have blowback. There's a war there, let's not sow the seeds for the next one SADDAM style.
Let's get free of oil dependence 40 years overdue. A hybrid in every garage. An oil line down from our buddies in Canada. You know way up north.
Let's put solar panel heating in every home with a sun exposure and take some pressure off the grid. Now there's a subsidy worth having, until we get to economies of scale. There's a place where govt can help if they vet the firms competently, albeit a big if.
Let's put our money on the original path it had when the founding fathers were around. Backed by silver and gold, not deflated into the toilet so we're all millionaires who need that million to buy a cup of coffee.