Friday, July 03, 2009

"Spend More Money"? It Doesn't WORK!!

Ummmnnnhhhhh.....for the history-disabled among you, those were HOOVER'S budgets which cranked up the Federal Spending Machine, not FDR's.
And by gosh, by golly--it didn't work (can you read this, Struppster?)
HT: Vox


J. Strupp said...

...and Vox's point would make sense had Hoover's increase in government spending existed in a vacuum. I believe we are leaving out an important piece of the puzzle here, namely, monetary policy under Hoover as well as protectionist legislation i.e. Smoot-Hawley.

Oh and I believe I rememeber something about huge tax increases enacted during that time frame as well.

Shoebox said...

What tax increases? You mean tax increases have negative stimulus? You better call Obama quickly. He doesn't seem to understand that. You just might be able to save his entire legacy with that single gem!

J. Strupp said...

Tax increases are "negative stimulus", but much less so than cutting gov. spending in times such as these.

Unless, of course, you raise taxes the way Hoover did in the early 1930's. I believe Obama wants to raise the top income level tax rate something like 3%?

Yeah so what? Hoover more than doubled it.