Dr. Lloyd Stover | AC-T | January 2, 2009
"President-elect Obama has ready announced plans for a large public works program, in hopes of creating millions of jobs and stimulating the economy. It appears reasonable to presume that investments in green technology, education and infrastructure could lead to increased productivity, which will in turn stimulate economic growth. . . He may want to review lessons learned from another great American steward: FDR."
MY RESPONSE:
The government does not have money. It does not produce anything of value. It only has the coercive power to move value from one market-determined sector (where it belongs) to another politically-determined sector (where it does not belong).
Fans of FDR mistakenly credit him with helping the economy during the depression. What that diminishing fan base apparently does not yet understand is that it was the meddling interventionist policies of Hoover and FDR that turned a mild, government-caused recession into a disastrous and painful decade-long GREAT DEPRESSION. In a natural and unhampered economy, the recession ends in well under three years.
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