Week in Review
President Obama attacks rugged individualism. Entrepreneurialism. And the American spirit. What he calls ‘you’re on your own economics’. Lying about what hasn’t worked in the past. For he is either lying or he is incredibly uninformed when it comes to American economic history (see Obama: “You’re On Your Own” Economics Doesn’t Work posted 3/30/2012 on Real Clear Politics).
“It’s been tried in our history and it hasn’t worked,” Obama said. “It didn’t work when we tried it in the decade before the Great Depression. It didn’t work when we tried it in the last decade. We just tried this. What they’re peddling has been tried — it did not work!”
When the government left people alone in the Twenties that decade roared. The ‘leave the people alone’ policies of the Harding (and then the Coolidge) administration gave us the Roaring Twenties. A remarkable decade of technological growth. Both in the cities and on the farms. We mechanized. We electrified. We talked to people all over the country on the new telephones. We went mobile in our new automobiles. We listened to the radio in our homes. We used electric appliances in our homes. We went to theaters to watch the new motion pictures. People flew in airplanes. The Roaring Twenties were a seminal time. It marked the beginning of the modern world we know today. And it was full of real, solid economic growth. Until the progressive Herbert Hoover took over. And after he got rid of ‘you’re on your own economics’ everything went to hell.
The Great Depression was a wholly made government disaster. Massive interventions into the private sector economy. Price supports. A horrendous tariff bill (the Smoot-Hawley Tariff Act). And the resulting trade war. And then in the midst of all of this the Federal Reserve System destroyed the banking system. By NOT being the lender of last resort. Causing a cascade of bank failures.
The Seventies was Keynesian Economics at its pinnacle. It was everything President Obama believes in and wants today. Massive government spending. Paid for by massive taxes, borrowing and printing. The polar opposite of ‘you’re on your own economics’. Which were an abject failure. Even Keynesian Economists have to qualify the Seventies to explain away the stagflation (high unemployment AND high inflation) their policies gave us. Ronald Reagan fixed the Keynesian train wreck with exactly ‘you’re on your own economics’. It was so successful that Keynesians call it the decade of greed. A moniker no one can place on the Seventies.
So why is the president saying things that aren’t true? Because they want those failed Keynesian polices back. They want to tax and spend like there’s no tomorrow. For they like the power. The control. And the ability to buy votes. Which is the only way they can win elections. Because no one will willingly vote for their failed policies of the past.
Tags: economic, economic history, economic Past, government spending, Great Depression, Keynesian economics, Keynesians, not telling the truth, Obama, President Obama, Roaring Twenties, Seventies, Tax and spend, Twenties, you're on your own economics