Progressives Explain the Economy #1: How High taxes create jobs

[jillian]

hey,, frankie, is it so complicated to understand that austerity kills jobs?

 

[Oddball]

We could stand to kill off scores of thousands of blood sucking federal bureaucrat jobs.

 

[regent]

You have to remember that there was a lot of skepticism about stimulus spending. Particularly from the republican congress, and those who were themselves republican supporters. So, the unemployment numbers had been coming down for a couple years, was at about 16 percent and looked to be dropping, so FDR decided to lay off the stimulus spending. Net was a new recession and unemployment went back up to about 19 Percent. So, FDR suggested afterward that he learned a lesson and began stimulus spending again. Full boar. And the rate started down again.

So few know that. FDR was anxious to get a balanced budget, always one of his goals.

 

[EdwardBaiamonte]

FDR suggested afterward that he learned a lesson and began stimulus spending again. Full boar. And the rate started down again.

of course thats 100% stupid and idiotic. Liberal soviet Solyndra bureaucrats can steal your money and spent to it stimulate the economy. Bureaucrats don't invent new products so cant stimulate the economy. Only the private sector does that!!

What kind of fool does one have to be to think we got from the stone age to here because bureaucrats invented new products rather than folks like Steve Jobs who are as anit-bureaucrat as human beings can be?

If liberals could steal and spend stimulatively we'd order millions of planes and dump them into the ocean like in WW2. No one thinks that would work except the dumbest of dumb liberals!!

 

[EdwardBaiamonte]

... the Hoover interventions include: expanded public works( ever heard of Hoover dam), greater government control over agriculture, the Smoot-Hawley tariff, a virtual end to immigration, government loans for construction and other businesses ... Most important was Hoover’s pressuring businesses to not cut wages even as the prices of their output fell. The result was higher real wages, which were responsible for the unemployment rate topping out at 25 percent, causing the greatest human toll of the Great Depression. [1]
Hoover, much like FDR, was skeptical about free markets. [2]

I think one has to go back to Cleveland to get a president that actually believed what the Constitution says regarding federal intervention in markets, though it wouldn't surprise me if he "tinkered" as well. Takes a hell of a man with great restraint to resist the lure of imposing his ideas through central planning. It's easy to claim your ideas are best.

Yes, and in addition to that he was largely responsible for the great depression. What a man.

according to Friedman and Bernanke (the world's foremost living expert on the Great depression) the fault was, like the current depression, the Federal Reserve.

This Econ 101 day one class one which explains why you don't know it

 

[EdwardBaiamonte]

This government was involved in America's economy as soon as the ink dried on the Constitution.

but to a very very tiny degree, maybe less than 1% of GDP

But here's a question for history/economic buffs, can anyone tell us tell us the condiltion of the American economy in 1936 and why FDR ended that program?

Economists disagree about the causes of this downturn. Keynesian economists tend to assign blame to cuts in Federal spending and increases in taxes at the insistence of the US Treasury[1], while monetarists, most notably Milton Friedman tended to assign blame to the Federal Reserve's tightening of the money supply in 1936 and 1937.[2]

They argued that the New Deal had been hostile to business expansion in 1935–37 and had encouraged massive strikes.

Catalan: The Federal Reserve tightened its open market operations in late 1936, causing another credit contraction and another period of market clearing—that is, the market forced the liquidate of malinvestments made during the “boom” years of 1933–36. This leads to two conclusions. First, the “recovery” made during the first administration of the Roosevelt presidency was artificial and did not represent a recovery of real wealth. Second, the principle cause of the “depression within a depression” was a restoration of the market after it had been distorted by the prior credit boom of the mid-1930s.
There were likely other factors, including increased employment costs and increased taxes. Clearly, however, it was credit expansion which catalyzed the inevitable boon