Quote:
Originally Posted by totsuka
- Massive bridge building? roads? I thought the 1st stimulus plan was going to do that?
- Did HP founders, Google, Apple, Microsoft, Intel, Walmart etc..need "innovation competitions?
- State workers are not hurting when compared to everyone else. The bloated local, state and federal work force was long over due to a downsizing.
FDR's Treasury, Henry Morgenthau said before Congress in 1939;
"As the Great Depression persisted, even Treasury Secretary Henry Morgenthau admitted that the New Deal had been a failure. On May 6, 1939, he confessed, “We are spending more than we have ever spent before and it does not work. . . . We have never made good on our promises. . . . I say after eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!”
Obama and the Liberals refuse to learn from FDR's mistakes so with luck he will not be reelected and Romney will learn from FDR's mistakes.
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Well they certainly made a mistake because Keynesian stimulus is going to be pretty short lived when the money supply shrinks or stalls.
Year CPI M2
1928 51.3 46.42
1929 51.3 46.60
1930 50.0 45.73
1931 45.6 42.69
1932 40.9 36.05
1933 38.8 32.22
1934 40.1 34.36
1935 41.1 39.07
1936 41.5 43.48
1937 43.0 45.68
1938 42.2 45.51
1939 41.6 49.27
Consumer Price Index and M2 Money Supply: 1800-2008
Stimulus is pretty pointless since they just kept strangling the patient.
They got somewhat of an employment recovery when the money supply rose in 1936 only to stall out again in 1938
United States Unemployment Rate 1920–2010 — Infoplease.com
Milton Friedman explained it...
The Great Depression According to Milton Friedman | The Freeman | Ideas On Liberty
Problem is now since we are a chartilist monetary system guess which way you expand the money supply? With deficits. Deficits mine fiat gold.
#1 First you need fundamental liquidity with monetary policy.
#2 Then you need to let the ponzi schemes crash and for speculators to go bankrupt until assets are priced in cost to build.
#3 Then you need to run deficits with tax cuts to "mine for gold" with Fed open market operations
#4 If all else fails then Keynesian direct use of a spoiling surplus or simply nothing more than getting infrastructural improvements at bargain prices. How much do you think Hoover damn would cost now?
Can't just say a cold killed someone when they were also shot in the head.
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