Hoover & Co. clamped down on the money supply; raised interest rates; hiked tariffs against international trading partners; refused to make bank depositors whole when banks failed; stood idly by while our farmers lost their homes, land and equipment to foreclosure; and all the while tried to convince businesses and the public that recovery was imminent.
Barack Obama and his team have the benefit of hindsight, a luxury that Hoover did not have.
Thus far, they have not repeated any of his errors.
In fact, just the opposite.
What you call pet projects, social welfare, and bailouts are just simple tools we use to save businesses, create jobs, restore confidence, and stop a self-reinforcing deflationary spiral before it takes root and drives everyone under.
If the Japanese in 1990 had moved as aggressively as we have, they wouldn't have had to suffer through 10 years of deflation. But their government stood paralyzed at the onset, waited too long to act...and the people and businesses paid a miserable price.
It took the United States to bail Japan out of its misery, by buying the products Japan produced, but that their own citizens could not afford.
We learned from that lesson, too.
This is all just basic Econ 101.
Too bad so few Americans understand it.
"The one thing we do know is that we aren't following the catastrophic examples set at the dawning of the Great Depression or the 1990s crisis in Japan."
Oh yeah, that ain't what BO said.
I do not subscribe to Obama's plan to fix the problem. Pet projects, social welfare, and endless bails outs isn't the answer IMHO.
Did you guys see Pelosi at the President's speach to congress the other night? The President could have said "I'm gay" and she would have stood up and clapped! You would have thought that she was leaping out of her chair to get on her private jet to go to Europe! Even Biden thought that Pelosi leaping to her feet every 10 seconds was a bit much. You could tell by his facial expressions.
The liberal party and a the former president who never had a working majority spent on programs that included the expansion of home ownership to those in your culture who had no appreciable income history and no accountability in mortgage applications. To the issue of ABT: I hope the proactive plan to reduce government payments for therapies will create an incentive or more product development and research in the U.S.
The point is not who screwed it up but how to fix it. Massive pork belly spending doesn't create jobs, it creates debt and the need for more taxes. And its the taxes that will kill the economy, no top of inflation going wild due to devaluation of dollar. Look for oil, gold, and interest rates to rocket in lock step
yeah Obama will be still complaining this was Bush's mess in 2012. Very comforting thought isn't it?
It may not be very comforting but it nevetheless IS TRUE!
PS: I see you never saw the light in all these intevening years!
Well, cordial greeting to you, anyway....