Wednesday, March 11

1930s and Hoover Respin

Image via Wikipedia
The public is just starting to be informed what the facts have always said: There was no quick recovery after the crash of 1929 and FDR spent almost a decade trying this and that of government intervention before the economy recovered in spite of what he did. So the new liberal spin?

First they continue to tag Hoover as a free market tight fist who did nothing while the economy tanked. 

"There is inherent virtue in action. Hoover never understood this." John Farrell says. 

Truth: Hoover believed in the "Efficiency Movement (which comes from the Progressive era) that a technical solution existed for every social and economic problem." In other words the government could fix it. Also it is interesting to note, before the Wall Street crash it was the Democrats espeically Wodrow Wilson and FDR who courted Hoover to run as a Democrat. Indeed after he lost to FDR New Dealer Rexford Tugwell said that "practically the whole New Deal was extrapolated from programs that Hoover started." No one would have said that Hoover was a man of inaction one year into the Depression. Ineffective action yes, but not inaction. And FDR continued that action...and kept us in a Depression for ten years.

So if we want to copy the 1930s, too much flailing action on the part of the government appears to lead us right down the line to give us a decade of depression debt.

Your happy thought for the day.