Lakshmi Rhone wrote:
> Schumpeter made no secret of his preference for Hitler over FDR and Stalin.
Maybe (since he was extremely conservative), but just because
Heisenberg favored Hitler doesn't mean that we reject the uncertainty
principle of quantum mechanics.
> 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.
I don't think so: FDR was not a Keynesian. As E. Cary Brown shows, the
only deficits that FDR ran were due to low aggregate demand or were
opposed by FDR. There wasn't a "fiscal plug" to pull, since FDR always
opposed deficits, except those due to war.
> See Sumner Slichter's analysis. <
what did he say?
> 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. <
Both monetary policy and fiscal policy became tighter before the downturn.
--
Jim Devine
"Those who take the most from the table
Teach contentment.
Those for whom the taxes are destined
Demand sacrifice.
Those who eat their fill speak to the hungry
of wonderful times to come.
Those who lead the country into the abyss
Call too ruling difficult
For ordinary folk." – Bertolt Brecht.
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
