Skip to comments.Obama stimulus in 1931 - Herbert Hoover
Posted on 07/26/2012 6:40:51 AM PDT by ProgressingAmerica
Nothing too special about this, on the surface.
Yet another president announces stimulus, which has always worked. Oh, wait.......
The text of this speech can be found here:
Radio Address to the Nation on Unemployment Relief October 18, 1931
It's easy to understand that governmental stimulus is universally wrong when you see and hear how many times and by how many people it's utterly failed.
In reading the transcript, you will notice that he speaks highly of the individual, yet with his actions he does the opposite. It is not individuals who will save us, it is governmental stimulus that will save us. Had Hoover been a "do nothing" president like his predecessors Coolidge and Harding, the roaring 20's would've likely kept on roaring into the 30's. But because he meddled, we'll never know.
We the people are the solution. Government is the problem. No matter who grows it.
Henry Morgenthau, Jr; May 11, 1891 February 6, 1967) was Secretary of the Treasury of the United States during the administration of Franklin D. Roosevelt. He was also the father of Robert M. Morgenthau, the current District Attorney of New York County.
In 1933, Roosevelt became President and appointed Morgenthau governor of the Federal Farm Board. In 1934, when William H. Woodin resigned because of ill-health, Roosevelt appointed Morgenthau Secretary of the Treasury (an act that enraged conservatives). Morgenthau was an orthodox economist who opposed Keynesian economics and disapproved of some elements of Roosevelt’s New Deal. Although he was a Roosevelt loyalist and retained his office until 1945, in “New Deal or Raw Deal?” Burton Folsom quotes Morgenthau, testifying before the House Ways and Means Committee in May of 1939, the FDR ally did not sugarcoat it:
“We are spending more money than we have ever spent before and it does not work. I want to see this country prosperous. I want to see people get a job. 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.”
When Hoover became president, the stock market crashed. Hoover jumped up and started doing things. It made the situation worse. Then FDR became president on the idea that Hoover wasn't doing enough. FDR did more -- and the situation got worse.
Question: Does Barack Hussein Obama resemble more nearly Herbert Hoover, or FDR?
Lest it be forgotten, Herbert Hoover started what was essentially to become the New Deal. Because of an extraordinarily long interval between the election of November 1932 and March of 1933, there was a nearly six-month interval during which nothing much was happening. Hoover tried to get FDR into the Oval Office early to at least discuss the transition, but FDR politely (or maybe not so politely) refused any meeting, so as not to give Hoover the least bit of credit in the attempt to turn the situation around. Roosevelt, in fact, merely adopted Hoover’s program the first day in office, and gave his version of “the first 100 days” to a complaisant Congress, which, being overwhelmngly Democrat and Progressive Republicans (a most unnatural alliance, it would turn out), passed it all in the dark of night and with virtually no discussion (sound familiar?) Of course, most of this program, designated the “National Recovery Act” was overturned by the Supreme Court, forcing a complete redraft and re-passage of the New Deal, again with little dissent from what was now a rubber-stamp for the Second Imperial Presidency (the first was Wilson’s, 1913-1921). America fell into a long dark night, with the election of 1936 being little more than a kabuki stage show, for the re-coronation of FDR. But worse, the already seriously long depression, was made much worse with the introduction of new taxation, price controls at every level, “fair trade” acts that were drawn up to prevent multiple-outlet store chain from having a pricing advantage over small, locally owned retail establishments, and favoring of certain industries over others. The United States was in much worse economic straits in 1938 than they had been even at the time of the stock market crash of 1929, with the majority of small banks having being swallowed up and liquidated, and extension of credit was a distant dream for all but the very upper edge of industrialists willing to play the game with the Roosevelt Administration.
If you ask hard core lefties like Paul Krugman, they will say the New Deal didn't work because we didn't do enough! No, they say, it took a world war to do it, and they equate that with the ultimate in government stimulus projects. This is why Krazy Krugman writes about the world needing an invasion of aliens to fight off, he wants a big war but doesn't have the nerve to say the big government solution is to kill actual people.
What Krugman fails to understand is that if you send millions of men overseas, that will indeed opens up lots of domestic jobs and unemployment will vanish but when they come home, look out! Look at the economy in 1945 though 1947 if you need proof of that. Big spending never works, never has worked, the New Deal didn't work and WW2 didn't do anything for the economy but temporarily resolve unemployment at the cost of rationing and massive public debt, not to mention the death and destruction. And after all that, 1946 looked a lot like 1940 ecept now there was a housing crisis too.
Hoover was a Progressive Pseudo RINO by today’s standards. If he had followed what his predacessor Silent Cal, the Depression would have been short and the economy would have recovered well before his re-election in 1932. Instead he meddled too much and drove the economy into the doledrums.
This is why Romney Scares me.