“Barack Obama seems determined to repeat every disastrous mistake of the 1930s, at home and abroad. He has already repeated Herbert Hoover’s policy of raising taxes on high income earners, FDR’s policy of trying to micro-manage the economy, and Neville Chamberlain’s policy of seeking dialogues with hostile nations while downplaying the dangers they represent.”
~Thomas Sowell
So True…
07 Tuesday Apr 2009
Posted in CRDaily
Too bad what caused the great depression was sticky wages and gold hoarding. We have pay cuts and a fiat currency…seems unlikely.
Unfortunately, your analysis of the Great Depression is wrong, not Mr Dent’s… There were many other factors involved, and in fact the two you mentioned played a lesser role than others…
All I was suggesting is those were not as major causes of the great depression. However several different multi idealogical blogs agree that gold standard led to higher interest rates whig causes a contractionsry monetary policy. Something tells me double digit interest rates hurt the economy. Also people/ unions were not willing to give up their nominal incomes even in a deflationary spiral-depression did not get better. I am saying these factors did not cause the recession they caused the ensuing depression. The blogs that I am speaking of is the money illusion blog, krugmans and mankiws. I’m addition please tell me why the other more important factors were. In addition if your junk that tax cuts for the upper class would help ask yourself qlwhat the expected rate of return in the united states was during the midst of the crisis. I guarantee you that it was not positive. Tax cuts that are not spent or invested would not yield a stimulating effect. I would infer that MPC is higher in a lower tax bracket suing a recession. Furthermore the tax increases have not occurred so I am not seeing how it is hurting is. If anything it puts
A greater value on the marginal dollar now to be taxed then during the tax brackets. Governent outlays contribute to market demand they do not completly vanish into deadweight
Loss.