Tuesday, April 24, 2012

How About Government Doing Nothing to “Improve the Economy?

Remember, in the years from 1787 to the 1930s, the U.S. government did relatively little to remedy our cycles of both mild and severe financial downturns.
Herbert Hoover and Franklin D. Roosevelt thought that something had to be done to remedy natural economic facts of life. In the process of government manipulation, unemployment rose from 6%  to 20% over the next ten or so years. Ordinarily, the recession cycle  would have been over in a couple of years; instead we got the infamous Great Depression.
Our current Federal Reserve head, Ben Bernanke, is a student of the Great Depression. He has claimed to have been schooled to follow all the errors accomplished by the political leaders of that time. It seems he’s following similar Keynesian, easy money, free-spending, enabling, big-deficit mistakes.(See the Earl J. Weinreb NewsHole® comments.)















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