Schumpeter made no secret of his preference for Hitler over FDR and Stalin. But what people forget is that business confidence was already waning, and inventory accumulation had already reached its limits, before FDR decided to pull the fiscal plug in 1937 as a way to shore up animal spirits weakened by the prospect of taxes and militant labor. See Sumner Slichter's analysis. The Keynesians blame the second downturn on FDR's acceding to the Treasury View but he was led back to it by open recognition that his previous stimulus had run out of steam. The second downturn was coming whether he stayed the course or not. The Keynesians don't have an answer, and the Austrians have only a sadistic one. LR
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