Put Stimulus First . . . http://www.bloomberg.com/apps/news?pid=20601109&sid=atf_2mZ2XQKw&refer=exclusive By Heidi Przybyla April 2 (Bloomberg) -- When John Maynard Keynes came to Washington in 1934 to persuade President Franklin Roosevelt to spend more to revive the U.S. economy, Roosevelt didnât pay the British economist much attention, Thomas Worsley recalls. He hopes President Barack Obama wonât repeat Rooseveltâs mistake. Worsley, then a 23-year-old economist about to take a job in the Treasury Department, says Roosevelt balked at too much economic stimulus, and even allowed conservative Democrats to talk him into reining in federal outlays in 1937. Now, at 97, Worsley is watching as Obama wrestles with the deepest economic slump since the Great Depression and is coming under fire from critics at home and abroad over his spending plans. Ultimately, Worsley said, only World War II delivered the U.S. from its hard economic times, and he advises Obama to keep pumping money into the economy. âThat vindicated Keynesâs argument,â Worsley said during an interview at his brick townhouse in Alexandria, Virginia, where his framed economics degrees from the University of Virginia, including a doctorate, are displayed. âYou have to get enough spending going to get private enterprise interested in taking chances on investing.â The similarities between the current crisis and the Depression are clear, said Worsley. Speculation and a failing banking system stoked both disasters. The two presidents confronted competing pressures over whether to spend more money or cut taxes. A lack of regulation contributed to the mess. And neither president had an obvious path to success. (see web-link above for more comparisons and contrasts).
I don't understand how people keep comparing the 1930 crash which was a crash of the money supply to due a gold standard to the current crisis, which is an asset collapse because debt levels are unsustainable. We do not have a gold standard, we have a debt standard. This crisis has nothing to with the 1930's other than its another excuse for the governments of the world to conduct a power grab and further erode individual liberties and property rights. Typical fucking economic dickweed. If you want to get businesses investing remove barriers to capital. Like taxes or regulations. Having the government take a saved dollar from private hands, rinse it through its bureaucratic anus with a its 35% cut and then give it to failing banks so they can loan it out with interest is not fucking stimulative. I guess I need to go to oxford or Princeton to get my head lobotomized so I can understand how government is the great engine of economic growth.
Six years into the FDR admin unemployment was over twenty percent. The only reason they say that it took the war to get us going again was because the spending stifled the recovery... liberals and particularly intellectual liberals are dumb pos's from their birth to their glowing eulogy...
If FDR only had 2 terms and left in 1940 he would have been considered one of our worst Presidents. All his depression policies would be considered a failure.
Big government bureaucracies are to business as a pair of cement shoes are to a swimmer. Even if what we need is stimulus, and even if the federal government was the only source of stimulus. What's being proposed in Washington is mostly the furtherance of the liberal agenda and utterly useless pork. There's very little real stimulus involved. Just literally tons of wasted money, that hasn't even been borrowed or printed yet.
Too bad this old man has spent his life following a flawed economic theory. Austrian theory is so logical and actually makes sense in the real world. These fantasy land economic theories are popular because they are conducive to politics and political appointment. Look how well Larry Summers did.
we still need the regulation to keep these greedy pricks from selling the same securities more than once which is what i think happened,i think they were unregulated and scammed selling the same cds's more than once,they can't seem to find the holder of the deeds on these homes they are reluctant to foreclose on, and now the U S is stuck with a bankrupt reputation due to government laxity in policing the banking and securities industry,these businesses on the winning side of the cd swaps cleaned up,why arent we bringing these people to the table and going over their books,how many people were payed off,and how many are still sitting in the house and senate refusing to address this issue
Austrian Economics is a joke. Its methods consist of post-hoc analysis and do not generate testable implications. Thus, this approach fails the test of falsifiability. Some people ought to drive their car without looking in the rear view mirror.
we don't need more regulation all too big to fail institutions must be broken immediately and we need crooks in jail lifetime All AIG must be sent to jail - lifetime All money managers must be responsible for loses personally for 10 years