#1 Best Way To Aid Economy Now? Just Do Nothing
09-14-2011, 08:33 PM
- Join Date
- Aug 2005
Some people are hoping that President Obama's plan will get the economy out of the doldrums and start providing jobs for the unemployed. Others are hoping that the Republicans' plan will do the trick. Those who are truly optimistic hope that Democrats and Republicans will both put aside their partisanship and do what is best for the country.
Almost nobody seems to hope the government will leave the economy alone to recover on its own. Indeed, almost nobody seems at all interested in looking at the hard facts about what happens when the government leaves the economy alone, compared to what happens when politicians intervene.
The grand myth that's been taught to whole generations is that the government is "forced" to intervene when there is a downturn that leaves millions of people suffering. The classic example is the Great Depression of the 1930s. What most people are unaware of is there was no Great Depression until after politicians started meddling in the economy.
There was a stock market crash in October 1929 and unemployment shot up to 9% — for one month. Then unemployment started drifting back down until it was 6.3% in June 1930, when the first major federal intervention took place. That was the Smoot-Hawley tariff bill, which more than a thousand economists across the country pleaded with Congress and President Hoover not to enact.
09-14-2011, 08:39 PM
The "do nothing" approach was correct in 2008/2009, but it is no longer correct. Before the U.S. can "do nothing" and expect a recovery, it has to first undo from 2008 until present, then do nothing."In England a king hath little more to do than to make war and give away places; which in plain terms, is to impoverish the nation and set it together by the ears. A pretty business indeed for a man to be allowed eight hundred thousand sterling a year for, and worshipped into the bargain! Of more worth is one honest man to society and in the sight of God, than all the crowned ruffians that ever lived."
—Thomas Paine, Common Sense
09-15-2011, 11:14 AM
Really, a moratorium on any new agency rule-making as well as suspending several EPA and DOI regs to status quo at the start of the Oministration would do miracles for the economy with no other action at all.
Of course that isn't going to happen, I expect Obama just to dig a deeper hole.
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