Post by The Big Dog on Nov 23, 2008 12:30:10 GMT -5
An interesting piece penned by an economics professor at George Mason University. In light of the almost certain channelling of President Roosevelt by Seantor Obama and his transition peeps, this one is a must read.
It, of course, is also good to remember that the progressives do what they do in large part by "dealing with crisis" and putting the country on what is essentially a war footing, even though the "crisis" isn't necessarily one that involves war.
We're seeing it already, and saw ample proof throughout the last two years of campaigning.
[/url]
By TYLER COWEN
The New York Times
MANY people are looking back to the Great Depression and the New Deal for answers to our problems. But while we can learn important lessons from this period, they’re not always the ones taught in school.
The traditional story is that President Franklin D. Roosevelt rescued capitalism by resorting to extensive government intervention; the truth is that Roosevelt changed course from year to year, trying a mix of policies, some good and some bad. It’s worth sorting through this grab bag now, to evaluate whether any of these policies might be helpful.
<< snipped >>
In short, expansionary monetary policy and wartime orders from Europe, not the well-known policies of the New Deal, did the most to make the American economy climb out of the Depression. Our current downturn will end as well someday, and, as in the ’30s, the recovery will probably come for reasons that have little to do with most policy initiatives.[/quote]
It, of course, is also good to remember that the progressives do what they do in large part by "dealing with crisis" and putting the country on what is essentially a war footing, even though the "crisis" isn't necessarily one that involves war.
We're seeing it already, and saw ample proof throughout the last two years of campaigning.
[/url]
By TYLER COWEN
The New York Times
MANY people are looking back to the Great Depression and the New Deal for answers to our problems. But while we can learn important lessons from this period, they’re not always the ones taught in school.
The traditional story is that President Franklin D. Roosevelt rescued capitalism by resorting to extensive government intervention; the truth is that Roosevelt changed course from year to year, trying a mix of policies, some good and some bad. It’s worth sorting through this grab bag now, to evaluate whether any of these policies might be helpful.
<< snipped >>
In short, expansionary monetary policy and wartime orders from Europe, not the well-known policies of the New Deal, did the most to make the American economy climb out of the Depression. Our current downturn will end as well someday, and, as in the ’30s, the recovery will probably come for reasons that have little to do with most policy initiatives.[/quote]