Nice editorial at Newsweek on historical consequences of policies that will sound familiar.
I find it interesting that we generally look back fondly at FDR, yet his economic policies seem to be a large part of why the Great Depression is not known as the late 20s recession.
Things we know about the Great Depression:
* Spawned by stock market declines driven down by heavy borrowing (check)
* Accelerated by worsened consumer confidence and bank failures (which created liquidity and credit crises) (check)
* Driven deeper through government policies of protectionism, regulation, labor control, increased tax rates on capital gains and high income brackets (please don't check)
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2 comments:
Already checked. It's a done deal. All of those policies will be here come late January. -Eric
In fairness to FDR some of the policies to wich you refer he inherited from Hoover e.g. the Smoot-Hawley Tariff Act, which Hoover signed into law in 1930 against the advice of over 1,000 economists. Obama has forged a strong link with the Chicago school of economics. Lets hope he listens to them.
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