Why the Recovery is taking so long

[Truthmatters]

The Great Depression - The Hoover Administration



Hoover tried to restore people's confidence in the economy by predicting better times in the near future. Such reassurances, unfortunately, did not put food on the table. The economic depression continued to spread, businesses continued to fail, and more people became jobless.

Because of his conservative view of government intervention, Hoover opposed direct aid for the business decline following the stock market crash. He thought it would be best if the businesses tried to help each other out of the Depression. But as time passed the situation did not improve. So Hoover formed the Reconstruction Finance Corporation. This agency loaned money to railroads, banks and insurance companies to keep them in business. By doing this, Hoover hoped to keep workers on their jobs, but it was too little too late.

 

[Annie]

Too little too late

Which of the attempts? 'All of them' isn't an answer. That 'long depression' you referred to, why did immigrants keep flooding into the US during these years? What was the cause and what were the reasons for recovery?

You weren't really expecting an intelligent answer from that ditz, were you?

Umm, no. It was rhetorical and one is always hoping she gets lost in Wikidome. Hope springs eternal.

 

[Truthmatters]

Herbert Hoover: Biography from Answers.com


Hoover was one of the most able men to be elected as President and also one of the unluckiest. He was inaugurated on 4 March 1929. Seven months later the Stock Market crashed. The new President was a believer in self-reliance and self-help and was loathe to see government intervention in economic affairs. He sought, ineffectually, to encourage expansion through a tax cut and by urging business to expand. Spending measures passed by Congress that threatened a balanced budget were rejected. As the ranks of the unemployed swelled, Hoover's popularity plummeted. Soup kitchens became common sights. Many factories became desolate sites. The production index fell to its lowest point in the country's history.

Settlements of unemployed men sprang up and were dubbed "Hoovervilles". The army was used to remove war veterans who had marched to Washington, DC, to ask for advance payment of their war bonuses. Hoover stuck to his principles and continued to urge local and state action. The states proved unable to cope. As conditions worsened, Hoover established the Reconstruction Finance Corporation to lend money to firms that could offer collateral, but it had little impact.

 

[boedicca]

Because of his conservative view of government intervention, Hoover opposed direct aid for the business decline following the stock market crash.

That is fiction. Hoover did not have a conservative view. He actually viewed himself as a Progressive - and governed as such.

 

[Gunny]

Herbert Hoover: Biography from Answers.com


Hoover was one of the most able men to be elected as President and also one of the unluckiest. He was inaugurated on 4 March 1929. Seven months later the Stock Market crashed. The new President was a believer in self-reliance and self-help and was loathe to see government intervention in economic affairs. He sought, ineffectually, to encourage expansion through a tax cut and by urging business to expand. Spending measures passed by Congress that threatened a balanced budget were rejected. As the ranks of the unemployed swelled, Hoover's popularity plummeted. Soup kitchens became common sights. Many factories became desolate sites. The production index fell to its lowest point in the country's history.

Settlements of unemployed men sprang up and were dubbed "Hoovervilles". The army was used to remove war veterans who had marched to Washington, DC, to ask for advance payment of their war bonuses. Hoover stuck to his principles and continued to urge local and state action. The states proved unable to cope. As conditions worsened, Hoover established the Reconstruction Finance Corporation to lend money to firms that could offer collateral, but it had little impact.

Because of his conservative view of government intervention, Hoover opposed direct aid for the business decline following the stock market crash.

That is fiction. Hoover did not have a conservative view. He actually viewed himself as a Progressive - and governed as such.

*choke* *cough* .... Truthnevermattered: hammered again.

 

[Xenophon]

Because of his conservative view of government intervention, Hoover opposed direct aid for the business decline following the stock market crash.

That is fiction. Hoover did not have a conservative view. He actually viewed himself as a Progressive - and governed as such.

You are dealing with people that don't know history.

The GoP up to the Great depression were all generally progressive, the Democrats tended to be conservative up to Wilson, who began turning the tables.

 

[Truthmatters]

The line you are all complainging about is from a Illinios University site.

You see you are trying to rewrite history.

 

[Gunny]

Because of his conservative view of government intervention, Hoover opposed direct aid for the business decline following the stock market crash.

That is fiction. Hoover did not have a conservative view. He actually viewed himself as a Progressive - and governed as such.

You are dealing with people that don't know history.

The GoP up to the Great depression were all generally progressive, the Democrats tended to be conservative up to Wilson, who began turning the tables.

Don't tell them they're all fucked up and backwards-assed. They might go home and slit their wrists and ......

... ummm ....

 

[driveby]

Too little too late

How would you know?

A 10-year-old kid running a lemonade stand has more economic savvy than you.

And Obama ........

 

[Gunny]

The line you are all complainging about is from a Illinios University site.

You see you are trying to rewrite history.

No. You're fucking stupid. Get it yet. Who the Hell but a Dumbfuckocrat would listen to anything from notoriously liberal state universities?

Fail. Again. Flail again?

 

[boedicca]

The line you are all complainging about is from a Illinios University site.

You see you are trying to rewrite history.

No, we are no accepting propaganda from a progressive University.

Hoover governed as a Progressive. As you love Wiki so much - look it up.

 

[saveliberty]

Why the recovery is taking so long:

1. The credit problem has not worked itself out yet.

We still have a large number of foreclosures which are still occuring. The government's attempts to fix it have been met with resistance from the banks. Many Americans still carry large credit card debts. Banks are not assuming standard risks yet.

2. There remains a glut of exisitng homes in the market.

This means new construction will continue to struggle. It keeps home prices low and homeowners trapped in their homes or willing to abandon them due to negative equity.

3. Its jobs stupid.

The government has created uncertainty in taxes, health care costs and inflation risks. This recession cost 15+ million jobs. It is likely that this will be a jobless recovery for 10 million people.

4. Government appears unwilling to fix the problems.

The need to pay down the deficit and fund social programs makes tax help unlikely. The explosion in prok barrel spending to payoff politicans is costing us too. Fear of getiing thrown out of office keeps most at bay from real change to Medicare and Social Security. Reducing entitlements to their base would be a big threat to Democrats.

 

[Avatar4321]

Could someone please go get me an example of a recession this deep that was speeded to recovery by doing nothing?

No one is advocating doing nothing.

We are advocating massive tax and spending cuts and less government regulation.

the Depression of 1920 was the worst depression in the history of the United States. It was also one of the shortest specifically because of the above policies.

Meanwhile, the Great Depression of 1929 lasted more than a decade bacause of over intrusive government.

Isn't it ironic that the more the government grows and tries to interfer the longer the recessions/depressions last?

 

[boedicca]

Our government is like somone who sets a fire, and then shows up to pretend to help.

They are a bunch of economic arsonists.

 

[Avatar4321]

It's largely based on government spending. So while there is an increase in GDP, it's not necessarily the most fruitful of "recoveries".

Don't expect any significant increase in jobs this year. It's going to come back up a hell of a lot slower than it went down.

And we already know that this year will be showing better than next year because anyone with any sense of intelligence will be trying to claim profits this year to avoid the tax increases going into effect next year.

Not to mention next year is when most insurance premiums will jump 600% due to Obamacare.

Seriously, we arent going to be anywhere near a recovery until this current President and Congress is voted out.

 

[Oddball]

Our government is like somone who sets a fire, and then shows up to pretend to help.

They are a bunch of economic arsonists.

I like the Harry Browne analogy.

Gubmint will break your leg, then show up with a crutch and tell you how lucky you are to have them around.

 

[Gunny]

Our government is like somone who sets a fire, and then shows up to pretend to help.

They are a bunch of economic arsonists.

I like the Harry Browne analogy.

Gubmint will break your leg, then show up with a crutch and tell you how lucky you are to have them around.

No shit.

 

[Political Junky]

Explain how a government has No Involvement in an economy when it actually exists. How does that work?

Are you suggesting government should be abolished?

Can't you read? You claimed that the long recession was caused by the government having NO INVOLVEMENT in the economy.

How did that work?

Did they stop enforcing the law?

Did they abolish the military?

Did they get rid of the court system?

Deregulation caused the problems. Some big guys thought that was a great idea, Alan Greenspan and Reagan being two of them. Greenspan admitted recently that it was a mistake.

 

[Harry Dresden]

You're just flat f-ing dumb. You DO realize you are worse for the left than Palin is for the right? You could make Hubert Humphrey abandon the DNC.

Gunny ....remember....TRUTH MATTERS.....