Murray Tucker: Hooverian economics
August 6, 2011
Like our current president, Herbert Hoover knew little to nothing about economics. This truly great man had one big flaw. He listened to monetarist professor Irving Fisher, of Harvard, rather than employment economist John Maynard Keynes. Fisher was an incredibly bright economist whose major disciple was Milton Friedman, a lord of the neo-conservative movement who believed that low taxes and low government spending were key to high economic growth.
Today, fiscal policy (i.e., Keynesian policy) has been eliminated as a means to solve national economic problems. A combination of diehard Congressional representatives and a willing president have returned us to the days of Herbert Hoover.
While criticized as only creating more federal debt, the stimulus (which was half tax cuts, and history has shown that they do nothing to stimulate the economy) began to move unemployment to levels below 9 percent. The result of the ruinous debt ceiling/deficit reduction act has deprived America of the potential for using what FDR used to take our economy out of the black hole of Hooverian Economics.
Fools ignore history and are bound to repeat it.
Steamboat Springs and Santa Fe, N.M.