No Polly, no

This is a real-life economic experiment, one last chance to prove that Herbert Hoover was right after all and Franklin Roosevelt and Keynes wrong.

So, what was it that Herbet Hoover actually did in those years?

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Oh my, you mean Herbert Hoover did exactly what Keynes would have recommended? As the recession/depression hit you mean he began running, by the standards of the time, vast budget deficits? Do not forget that at this time federal spending was 3-4% of GDP in total, so a deficit of 3% really is a large number.

And when did Frankie Roosev get into power? Why, I believe it was 4 th March 1933.

Hmm, wait a minute, maybe Hoover still cut spending but the fall in taxes is what increased the deficit?

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Nope, he doubled federal government spending. That\’s how the deficit went from a surplus to 3 % of GDP.

So, Herbert Hoover reacted to the Depression by doubling/tripling government spending and financing this with a deficit.

D\’ye know, I have this feeling that the current economic policy (whatever you might think about it) is actually an attempt to prove Hoover wrong, not right.

4 comments on “No Polly, no

  1. “…one last chance to prove that Herbert Hoover was right after all and Franklin Roosevelt and Keynes wrong.”

    It’ll never, ever be that. Because there will always be those who believe that everyone else who failed was just incompetent or unlucky, and they alone will get it right.

  2. I’ve just realised the particular form of stupidity espoused by La Toynbee. It’s stupidity a la Bourbons.

  3. Quoting from fallible memory the words of that well-known neocon reactionary, JK Galbraith: “The actions of President Hoover were straight out of the later works of John Maynard Keynes.”

    Judging from experience, the words of Polly Toynbee are too often out of the Mad Hatter’s Teaparty.

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