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To: koan who wrote (258342)	7/3/2010 1:30:42 PM
From: The Reaper	Read Replies (1) \| Respond to of 306849

IMO Hoover caused things to get worse because he raised taxes in the face of the Depression, thus crippling the private sector to produce jobs. It has long been my contention that the government should have already put in place an agency similar to the Reconstruction Finance Corp. that would make loans to CREDITWORTHY businesses and individuals that could then expand their private interests to expand the job pool. Just handing out money to the banks as Bush and Obama has continued as a conduit for loans has been a failure from the word go as has Obama's Stimulus package because so little of it actually went to the infrastructure projects (that would have been completed by private contractors) that they had trumpeted. I've seen too many graphs now that demonstrate that government spending has such a diminished effect on GDP now that it is essentially worthless to pump billions of Keynesian dollars into the economy. Don't spend the money on worthless crap, loan it to entities that actually produce and know how to balance budgets. I find the path we're taking eerily similar to what Hoover did which was blasted by FDR. Picture Obama as Hoover and the next president to be as FDR. From Wikipedia: Franklin D. Roosevelt blasted the Republican incumbent for spending and taxing too much, increasing national debt, raising tariffs and blocking trade, as well as placing millions on the dole of the government. Roosevelt attacked Hoover for "reckless and extravagant" spending, of thinking "that we ought to center control of everything in Washington as rapidly as possible," and of leading "the greatest spending administration in peacetime in all of history."[47] Roosevelt's running mate, John Nance Garner, accused the Republican of "leading the country down the path of socialism".[48] BTW the Reconstruction Finance Corp was Hoover's program. That IMO is what started to get us out of the Depression

To: koan who wrote (258342)	7/3/2010 1:38:24 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

>>One can never let children starve based on a theory. That is just plain nuts.<< The problem is, Keynesianism is just a theory, too. In practice it fails, repeatedly because no one is politically capable or resolute enough to pay back the debts incurred from stimulative fiscal/monetary policies during the lean times. So the debts simply grow and grow and grow. Unfortunately this theory has captured all of the major Anglo-American academic economists, so there is no real voice for an alternative (and their ARE important alternatives out there, specifically the Austrian school). So in a nutshell, we are farked.

To: koan who wrote (258342)	7/3/2010 2:27:28 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

>>After the 1929 crash Hoover, did what you are suggesting and did little to help the depression.<< no,they did not do what i suggested. what i suggested was not to blow up the bubble in the first place! if they hadn't blown the bubble in the 20s, they would have avoided the crash. that's what i recommended in 1998 - and we would have been much better off. krugman is a clown. he surely got his nobel prize from the people who got us in this mess - and he is amazing if you like bubbles and busts, so i can see why they like him. stiglitz has some good ideas and some bad ideas. watch this video of stiglitz getting completely used... economicedge.blogspot.com appeal to authority doesn't work here - ideas stand on their own merits. do you fix hangovers by drinking more at ever increasing rates? why would you solve excessive debt problems by piling on more debt? answer the question, don't appeal to authority.